|
WINTERFELL SNOW & SKI UNADJUSTED TRIAL BALANCE As at 30 June 2017 |
||
|
Debit ($) |
Credit ($) |
|
| Cash at Bank |
142,752 |
|
| Accounts Receivable |
170,000 |
|
| Inventory |
748,800 |
|
| Prepaid Insurance |
26,208 |
|
| Office Supplies on hand |
17,472 |
|
| Furniture & Fittings |
212,160 |
|
| Accumulated Depreciation – Furniture & Fittings |
63,648 |
|
| Delivery Equipment |
249,600 |
|
| Accumulated Depreciation – Delivery Equipment |
99,840 |
|
| Accounts Payable |
144,144 |
|
| Loan Payable |
624,000 |
|
| J. Snow – Capital |
353,184 |
|
| J. Snow – Drawings |
149,760 |
|
| Sales Revenue |
3,685,488 |
|
| Sales Returns and Allowances |
52,928 |
|
| Cost of Sales |
2,198,976 |
|
| Discount received |
69,104 |
|
| Freight inwards |
49,920 |
|
| Sales Salary Expense |
364,416 |
|
| Delivery Expense |
97,344 |
|
| Advertising Expense |
143,520 |
|
| Rent Expense |
152,256 |
|
| Office Salaries Expense |
180,000 |
|
| Electricity Expense |
47,104 |
|
| Discount Allowed |
36,192 |
|
| Totals |
5,039,408 |
5,039,408 |
On the following page is information that Jon has provided to you in relation to the year
ended 30 June 2017.
1. Office Salaries which are payable but not recorded as at 30 June are $6,280.
2. Both the Furniture & Fittings and the Delivery Equipment are expected to be used evenly over their useful lives. The expected total useful lives and residual values of both assets is as follows:
|
Estimated Useful life |
Estimated Residual |
|
| Furniture & Fittings |
8 years |
0 |
| Delivery Equipment |
6 years |
$16,800 |
3. In order to allow for cash flow fluctuations, the bank has approved a $48,000 overdraft facility for Jon’s business bank account.
4. A count of the stationery room revealed that office supplies on hand at 30 June 2017 were $13,896.
5. The balance in the Prepaid Insurance account represents a 12 month insurance policy that commenced on 1 April 2017.
6. $21,600 of the recorded Sales Revenue is for specially imported snowboard which will not be delivered until 24 July 2017.
7. As of 30 June 2017, Jon has estimated that 3% of his Accounts Receivable will not be collected.
8. Jon last received an electricity bill on 31 May 2017, and Jon estimates that his power usage from then until 30 June 2017 was $1,753
REQUIRED:
As it is now the end of the financial year, you are required to prepare any necessary Balance Day Adjustment Journals for Winterfell Snow & Ski.
Include a brief narration (explanation) for each journal entry. (21 marks)
| Date | Details | Debit ($) | Credit ($) |
