The following pre-adjustment trial balance was prepared for Astro Traders: ASTRO TRADERS EXTRACT OF PRE-ADJUSTMENT TRIAL...
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The following pre-adjustment trial balance was prepared for Astro Traders: ASTRO TRADERS EXTRACT OF PRE-ADJUSTMENT TRIAL BALANCE AS AT 31 DEC 2022 14 650 000 1439 600 ? 722 000 2 000 000 382 000 ? Capital Loan: Premium Bank Vehicles Equipment at cost Inventory Debtors control Allowance for credit losses Sales Cost of sales Sundry expenses Rent income Salaries and wages Depreciation (on vehicle sold) Packaging material Profit on sale of vehicle Credit losses Drawings Additional information: . ? ? 88 000 221 000 6 425 000 41 250 45 800 ? 28 800 672 000 31 DEC 2021 14 650 000 2 150 000 1546 000 722 000 9800 The mark-up achieved is 160% on cost. The correct gross profit is R14 881 600. Packing materials used during the financial year was R39 700. Received and recorded R9 750 from the insolvent estate of a debtor which paid out 65 cents in the rand. The remaining amount must be written off. Adjust the allowance for credit losses to R9 350. One of the employees was on sick leave and was omitted from the Salaries Journal for December 2022. The salary payable to this employee was R38 500. ● The premises have been rented out for the past five years. The rent receivable for January 2023 has been received and recorded. The monthly rental has remained the same for the last year. Loan: Wonder Bank Provide for interest of R212 400 for the year ending 31 December 2022. This entry has not yet been processed. An old delivery vehicle was sold for R88 400 cash on 30 September 2022. This has been correctly recorded. Details of the delivery vehicle sold: Cost price R198 000 Accumulated depreciation on date of sale R115 500 O O O Provide for depreciation as follows: On vehicles at 25% p.a. on cost On equipment: R90 500 O Required: Prepare the Statement of profit or loss and other comprehensive income of Astro Traders for the year ended 31 December 2022. The following pre-adjustment trial balance was prepared for Astro Traders: ASTRO TRADERS EXTRACT OF PRE-ADJUSTMENT TRIAL BALANCE AS AT 31 DEC 2022 14 650 000 1439 600 ? 722 000 2 000 000 382 000 ? Capital Loan: Premium Bank Vehicles Equipment at cost Inventory Debtors control Allowance for credit losses Sales Cost of sales Sundry expenses Rent income Salaries and wages Depreciation (on vehicle sold) Packaging material Profit on sale of vehicle Credit losses Drawings Additional information: . ? ? 88 000 221 000 6 425 000 41 250 45 800 ? 28 800 672 000 31 DEC 2021 14 650 000 2 150 000 1546 000 722 000 9800 The mark-up achieved is 160% on cost. The correct gross profit is R14 881 600. Packing materials used during the financial year was R39 700. Received and recorded R9 750 from the insolvent estate of a debtor which paid out 65 cents in the rand. The remaining amount must be written off. Adjust the allowance for credit losses to R9 350. One of the employees was on sick leave and was omitted from the Salaries Journal for December 2022. The salary payable to this employee was R38 500. ● The premises have been rented out for the past five years. The rent receivable for January 2023 has been received and recorded. The monthly rental has remained the same for the last year. Loan: Wonder Bank Provide for interest of R212 400 for the year ending 31 December 2022. This entry has not yet been processed. An old delivery vehicle was sold for R88 400 cash on 30 September 2022. This has been correctly recorded. Details of the delivery vehicle sold: Cost price R198 000 Accumulated depreciation on date of sale R115 500 O O O Provide for depreciation as follows: On vehicles at 25% p.a. on cost On equipment: R90 500 O Required: Prepare the Statement of profit or loss and other comprehensive income of Astro Traders for the year ended 31 December 2022.
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Calculation of Depreciation Depreciation on Vehicles 25 722000 Equipment at Cost Depreciation ... View the full answer
Related Book For
Fundamental Accounting
ISBN: 9781485112112
7th Edition
Authors: David Flynn, Carolina Koornhof, Ronald Arendse, Anna C. E. Coetzee, Edwardo Muriro, Louise Christel Posthumus, Louise Mancy Smit
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