The trial balance of Victoria Ltd at 30 June 2020 is shown below. There was no movement
Question:
The trial balance of Victoria Ltd at 30 June 2020 is shown below. There was no movement in share capital for the year. The adjustments that need to be made are:
1. record income tax expense of $7500
2. transfer $1000 to general reserve
3. accrued expenses: sales staff’s salary $650; office salaries $270; interest on bank loan $20
4. write off preliminary expenses $3000
5. rent prepaid $300
6. record depreciation: motor vehicles 10% on cost; office furniture 20% on cost; buildings 5%
7. recommend a dividend of 20c per share.
Required
Prepare an income statement and a statement of changes in equity for the year ended 30 June 2020 and a balance sheet for Victoria Ltd as at 30 June 2020.
Step by Step Answer:
Financial Accounting
ISBN: 9780730363217
10th Edition
Authors: John Hoggett, John Medlin, Keryn Chalmers, Claire Beattie, Andreas Hellmann, Jodie Maxfield