Complete the following worksheet for Appliance Repair for the year ended 30 June 2020. (15 marks) Additional
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Question:
Complete the following worksheet for Appliance Repair for the year ended 30 June 2020. (15 marks)
Additional information to complete the worksheet:
- The equipment of $67,500 was purchased on 1 March 2020. The straight-line depreciation method is used with a useful life of 3 years and a scrap value of $2,700. No depreciation is ever recorded.
- The $75,000 bank loan was borrowed on 1 May 2020. It is an interest only loan. The interest rate is 0.8% per month. No interest is ever paid or recorded.
- The supplies on hand at 30 June 2020 were $650.
- The prepaid insurance balance represents the annual premium paid on 1 April 2020.
- $2,500 of unearned revenue has been earned by 30 June 2020.
trial balance (unadjusted) adjustments trial balance(adjusted) Incomestatement account title debit credit debit credit debit credit debit credit cash at bank 37,500 account payable 127,500 prepaid insurance 1,800 suppliers 900 equipment 67,500 accumulated depreciation -equipmeny accounts payable 2,700 unearned revenue 3,150 interest payable bank loan (due in 2028) 75,000 capital 49,950 service revenue 157,500 wages expense 52,500 supplies expense 600 depreciation expense - equipment insurance expense interest expense 288,300 288,300
Related Book For
Financial Accounting and Reporting
ISBN: 978-0273744443
14th Edition
Authors: Barry Elliott, Jamie Elliott
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