Donalds Juice Shop had the following balances in its ledger at 30 June 2020. Account Amount ($)
Question:
Donald’s Juice Shop had the following balances in its ledger at 30 June 2020.
Account | Amount ($) |
Cash at Bank | $48 724 |
Accounts Receivable | $2 05 056 |
Inventory | $2 91 200 |
Prepaid Insurance | $15 744 |
Office Supplies on Hand | $8 736 |
Furniture & Fixtures | $1 06 080 |
Accumulated Depreciation – Furniture & Fittings | $29 120 |
Delivery Equipment | $1 24 800 |
Accumulated Depreciation – Delivery Equipment | $49 920 |
Accounts Payable | $72 072 |
Loan Payable | $3 12 000 |
Donald, Capital | $1 32 284 |
Donald, Drawings | $75 240 |
Sales | $19 22 800 |
Sales Returns & Allowances | $26 664 |
Discount Allowed | $18 200 |
Cost of Sales | $10 99 488 |
Freight In | $24 960 |
Discount Received | $22 464 |
Sales Salaries Expense | $1 82 208 |
Delivery Expense | $48 800 |
Advertising Expense | $71 760 |
Rent Expense | $76 400 |
Office Salaries Expense | $90 000 |
Electricity Expense | $26 600 |
Donald’s Juice Shop financial year ends on 30 June. During the year the accountant prepared monthly statements using worksheets, but no adjusting entries were made in the journals and ledgers. Data for the year-end adjustments are as follows.
- Expired insurance, 30 June 2017, $8,082.
- Office supplies on hand, 30 June 2017, $8,723.
- Depreciation expense for year, furniture and fixtures, $50,004.
- Depreciation expense for year, delivery equipment, $12,005.
- Sales salaries payable but unrecorded, $6,806.
- Office salaries payable but unrecorded, $1760.
Required:
- Prepare a worksheet for the year ended 30 June 2017.
- Prepare an income statement for the year ended 30 June 2017.
- Prepare a balance sheet as at 30 June 2017.
- Make the necessary adjusting entries.
- Make the closing entries.
- Make any necessary reversing entries.
- Do you think Donald’s Juice Shop is in good financial position? Analyse and explain.
Cornerstones of Financial and Managerial Accounting
ISBN: 978-0324787351
1st Edition
Authors: Rich Jones, Mowen, Hansen, Heitger