Reference no: EM132682802

Question - You are the accountant for XYZ Ltd. By the end of 05/2020, you have recorded amounts for the company accounts as Table 1 below.

Table 1 Accounts at 31/05/2020

Items Amount $

Accounts payable 6000

Cash 40,000

Supplies 1,000

Inventory (fully assembled PCs) 60,000

Equipment 24,000

Accounts receivable from sales 20,000

Accumulated depreciation 4,000

Short-term Loan (payable in July 2020) 20,000

Unearned revenue 1,000

Following events happened in June.

1 June The company purchased $2,000 packaging supplies for computer delivery package on credit.

2 June The company recruited one apprentice whose monthly salary is 3,000.

5 June The company purchased some computer assembly equipment for $2,000 cash.

10 June A staff member, Eric, is retiring in 2 weeks' time, because he won a significant lottery prize. The company decided not to recruit a new one to save $60,000 per year.

13 June The company paid staff wages $25,000.

15 June Credit sales of $35,000 were made. Cost of these computers is $20,000.

17 June Cash sales $8,000 were made. Cost of these computers is $4,000.

25 June A customer pre-paid $3,000 to order a customized computer.

27 June The company was awarded as the "Best Computer Shop" by the local community.

28 June 50% of last month's Sales on Credit was collected.

29 June You have identified an error in the accumulated depreciation account and recalculated the amount for accumulated depreciation account. The correct amount by the end of June 2020 should be $3,000.

30 June One of your customers called in to notify you he would like to cancel the deal he is currently negotiating with you. This deal is worth $45,000.

Required - Answer the following question with the help of balance, indicate the working in the answer.

Q1. At 30 June 2020 what is the closing balance of Accounts Payable?

Q2. At 30 June 2020 what is the closing balance of Cash?

Q3. At 30 June 2020 what is the closing balance of Supplies?

Q4. At 30 June 2020 what is the closing balance of inventory?

Q5. At 30 June 2020 what is the closing balance of Equipment?

Q6. At 30 June 2020 what is the closing balance of Accounts Receivable?

Q7. At 30 June 2020 what is the closing balance of Accumulated Depreciation?

Q8. At 30 June 2020 what is the closing balance of Short-term Loan?

Q9. At 30 June 2020 what is the closing balance of Unearned Revenue?

Q10. At 30 June 2020 what is the closing balance of Owner's Equity?

Q11. The business owners recorded all transactions for July 2020 but don't know how to record the following 2 transactions. Please help the business owner to record the following:

01/07/2020, paid rent of $10,000 for the next two months of your business

31/07/2020, the accountant needs to do relevant adjusting journal entries.