Reference no: EM132699437

Problem - The following additional information was extracted from the records towards the end of the ?nancial period.

1. Credit sales of $6.500 was recorded as cash sales in error.

2. Unity Enterprise owed a credit supplier $40,500 and settled the amount early and was given a 2% cash discount. The accounts clerk recorded the payment, but the discount was not recorded.

3. A cheque of $4.880 paid to a trade creditor. Nellie, was recorded in the accounts as $4.088.

4. Payment of $15,300 for shipping goods to customers in June 2020 was made in July 2020.

5. Commission income received of $12,660 for period from 1 April 2020 to 30 September 2020 had been received but not recorded.

6. Insurance expense shown in the trial balance above was for the period from 1 May 2020 to 30 September 2020.

7. The 5% bank loan was taken on 1 July 2019. The interest expense has been paid to 31 December 2019 for this ?nancial year ending 30 June 2020.

8. Annual depreciation on fixed assets were as follows:

Office equipment - $18,300

Motor vehicles - $26,260

9. Rent income of $2.400 for June 2020 has neither been received nor recorded.

10. A physical count on 30 June 2020 revealed stocks on hand to be $209,432.

Required -

(a) Prepare the necessary general journal entries to record transactions (1) to (9). Narrations are not required.

(b) Prepare the following ?nancial statements for Unity Enterprise:

(i) Statement of Comprehensive Income for the year ended 30 June 2020.

(ii) Statement of Financial Position as at 30 June 2020.