In: Accounting
Question 2: From the following account balances to 30 June 2020 prepare a statement of financial position in the narrative classified format. Note: you will need to determine the balance of the retained earnings.
Type of Account |
$ |
Accounts Receivable |
46500 |
Provisions |
50000 |
Prepayments |
1200 |
Sales Revenue |
455000 |
Plant and Equipment |
220000 |
Other Current Assets |
11000 |
Borrowings |
120000 |
Interest on Borrowings E |
6000 |
Accumulated Depreciation |
48500 |
Accounts Payable |
26000 |
Share Capital |
450000 |
Land and Buildings |
339000 |
Inventory |
78000 |
Two Year Term Deposit |
98500 |
Cash at Bank |
32000 |
Retained Earnings |
? |
Salaries expense |
215000 |
Salaries Accrued |
12500 |
Insurance Expense |
9000 |
Annual Depreciation |
22000 |
Utilities Expense |
8500 |
Selling Expenses |
25000 |
Question 3: From the accounts in question 2 above prepare a statement of profit or loss position for the period ended 30 June 2020.
The calculation for retained earnings is previous retained eranings + current year profit or loss.
The previous year retained earnngs is -50300, it is assumed to be the balancing figure as the question does not specify the previous year retained earnings.
The statement of financial position and profit & loss position has been attached below.