McPherson Ltd began operations on 1 January 2015. Quarterly financial statements are prepared. The trial balance and

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McPherson Ltd began operations on 1 January 2015. Quarterly financial statements are prepared. The trial balance and adjusted trial balance on 31 March are shown below. 


Required

(a) Journalise the adjusting entries that were made.

(b) Prepare a statement of profit or loss and a calculation of retained earnings for the 3 months ending 31 March, and prepare a statement of financial position as at 31 March.

(c) Identify which accounts should be closed on 31 March.

(d) If the interest rate on the loan is 10%, when did the entity take out the loan?

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Financial Accounting Reporting Analysis And Decision Making

ISBN: 9780730313748

5th Edition

Authors: Shirley Carlon, Rosina Mladenovic Mcalpine, Chrisann Palm, Lorena Mitrione, Ngaire Kirk, Lily Wong

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