Reference no: EM133188986
Question - Michael's Car Repair Services was established on 1st of July 2020 as a sole proprietor business, specialising in providing car repairs and general maintenance services. The owner, Michael Robert, contributed $110,000 in cash to start the business. Towards the end of the financial year, Michael has hired you to work as a part-time accountant to prepare financial statements of the business. While looking at the financial records, you have noted the following unadjusted Trial Balance of Michael's Car Repair Services on 30th June 2021.
|
Unadjusted Trial Balance
|
|
Debit ($)
|
Credit ($)
|
|
Cash at Bank
|
60,000
|
|
|
Trade & Accounts Receivable
|
14,000
|
|
|
Office Supplies
|
10,000
|
|
|
Prepaid Rent
|
20,000
|
|
|
Machinery & Equipment
|
140,000
|
|
|
Loans Payable
|
|
50,000
|
|
Accounts Payable
|
|
15,000
|
|
Accumulated Dep. - Machinery & Eqpt.
|
|
18,000
|
|
Michael, Capital
|
|
110,000
|
|
Service Revenue
|
|
125,000
|
|
Interest Income
|
|
5,000
|
|
Wages Expense
|
38,000
|
|
|
Office Supplies Expense
|
26,000
|
|
|
Marketing Expense
|
15,000
|
|
|
323,000
|
323,000
|
You have also discovered the following information that has not yet been recorded and need to be adjusted in the company's accounts for the year ended 30th June 2021.
Additional Information:
1. Depreciation on the machinery & equipment for 1 year is $12,000.
2. A prepaid rent of $14,000 has expired.
3. Electricity expenses owing at 30th June 2021, $16,000
Required -
1. Prepare the worksheet for the year ended 30th June 2021.
2. Prepare the Income Statement for the year ended 30th June 2021.
3. Prepare the Balance sheet (in narrative form) as at 30th June 2021.
|
Does lululemons culture provides competitive advantage
: Influences/sources of corporate culture, vision and goals, methods for maintaining corporate culture, advantages and potential risks of strong culture
|
|
Compute depreciation expense for the year ending
: Compute depreciation expense for the year ending December 31, 2020, if Lauter Tun Corporation uses straight-line depreciation
|
|
Compute cost of goods sold
: Compute cost of goods sold using the following information - Merchandise inventory, beginning $13,600 and Merchandise inventory, ending 19,600
|
|
Business resources to meet organisational objectives
: Identify and apply relevant academic theories to understand the various internal and external factors of an organisation and Identify a range of business
|
|
Prepare the Income Statement for the year ended June
: Depreciation on the machinery & equipment for 1 year is $12,000. Prepare the Income Statement for the year ended 30th June 2021
|
|
Identify the external compliance program for heath care
: Identify the external compliance program aspects that you recommend your health care organization should adopt,corporate social responsibility in your response
|
|
Critically appraise the significance of strategic management
: Critically appraise the significance of strategic management and decision making to the performance of a selected multinational organisation and apply
|
|
Identify potential causes using ob concepts and theories
: Identify potential causes using OB concepts and theories and make recommendations and take action
|
|
What is the amortization expense for the year
: Sydney, Inc., a manufacturer of chocolate-coated mint candy acquired a patent on June 25, 2018 for P720,000. What is the amortization expense for the year
|