AirTech Pte Ltd (APL) provides Aircon maintenance and servicing to both residential and commercial buildings. The...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
AirTech Pte Ltd (APL) provides Aircon maintenance and servicing to both residential and commercial buildings. The financial year of APL ends on 31 December. The company trial balance at the end of the 11 months of the year 20X2 given as follows: Account Title Cash Accounts receivable Supplies Prepaid insurance Building Accumulated depreciation - building Equipment Accumulated depreciation - Equipment AirTech Pte Ltd Trial Balance 30 November 20X2 Assets revaluation surplus Share capital Retained earnings Bank Loan Revenue Unearned revenue Accounts payable Utilities expense Salary expense Insurance expense Interest expense Interest payable Debit $ 207,150 49,900 97,100 150 1,900,000 700,000 33,400 304,600 1,650 13,750 3,307,700 Credit $ 427,500 350,000 55,000 900,000 84,720 500,000 877,180 41,200 62,100 10,000 3,307,700 Additional information (1) The company adopted the following depreciation policy for its non-current assets: (2) (3) (5) (6) E Building Equipment Useful life 40 10 Residual value Nil 10% of cost price On 1 December 20X2, the company sold an existing old equipment for $20,000. The equipment originally cost $80,000 and has a NBV of $22,400 as at 1 January 20X2. A new equipment was bought for $100,000 on the same day. The company issued shares to the equipment supplier for the purchase of the new equipment. (Workings must be clearly shown for the journal entries.) On 13 December, the company purchased $6,500 worth of supplies. The company paid the supplier $1,000. The remaining amount will be paid the next month. The bank loan of $500,000 the company took on 1 April carries an interest of 3% payable annually on 31 March. A utility bill of $2,430 was received on 23 December. On 24 December, the company completed a $4,500 job for a customer who had made the full payment last month. On 27 December, a customer paid $3,000 for a job to be done next week. Insurance cover for the building expires on 31 December 20X2 and the company paid $1,920 on 28 December 20X2 to renew the coverage for another year. (8) Salaries for the month of December amounted to $31,000 and was fully paid. The company pays corporate tax at the prevailing rate of 17% on its profit. (9) Required: (a) (b) Analyse the transactions and apply the accrual basis of accounting to prepare the journal entries and the adjusting journal entries for AirTech Pte Ltd for the year ending 20X2. Dates and narratives must be clearly shown. The sequence and numbering system of the journal entries are to follow the order and number system given in the question. (38 marks) After incorporating the necessary journal entries and adjusted journal entries, present: (1) The statement of comprehensive income of AirTech Pte Ltd for the year ending 20X2 and (7 marks) (11) The statement of financial position of AirTech Pte Ltd as at 31 December 20X2. (10 marks) AirTech Pte Ltd (APL) provides Aircon maintenance and servicing to both residential and commercial buildings. The financial year of APL ends on 31 December. The company trial balance at the end of the 11 months of the year 20X2 given as follows: Account Title Cash Accounts receivable Supplies Prepaid insurance Building Accumulated depreciation - building Equipment Accumulated depreciation - Equipment AirTech Pte Ltd Trial Balance 30 November 20X2 Assets revaluation surplus Share capital Retained earnings Bank Loan Revenue Unearned revenue Accounts payable Utilities expense Salary expense Insurance expense Interest expense Interest payable Debit $ 207,150 49,900 97,100 150 1,900,000 700,000 33,400 304,600 1,650 13,750 3,307,700 Credit $ 427,500 350,000 55,000 900,000 84,720 500,000 877,180 41,200 62,100 10,000 3,307,700 Additional information (1) The company adopted the following depreciation policy for its non-current assets: (2) (3) (5) (6) E Building Equipment Useful life 40 10 Residual value Nil 10% of cost price On 1 December 20X2, the company sold an existing old equipment for $20,000. The equipment originally cost $80,000 and has a NBV of $22,400 as at 1 January 20X2. A new equipment was bought for $100,000 on the same day. The company issued shares to the equipment supplier for the purchase of the new equipment. (Workings must be clearly shown for the journal entries.) On 13 December, the company purchased $6,500 worth of supplies. The company paid the supplier $1,000. The remaining amount will be paid the next month. The bank loan of $500,000 the company took on 1 April carries an interest of 3% payable annually on 31 March. A utility bill of $2,430 was received on 23 December. On 24 December, the company completed a $4,500 job for a customer who had made the full payment last month. On 27 December, a customer paid $3,000 for a job to be done next week. Insurance cover for the building expires on 31 December 20X2 and the company paid $1,920 on 28 December 20X2 to renew the coverage for another year. (8) Salaries for the month of December amounted to $31,000 and was fully paid. The company pays corporate tax at the prevailing rate of 17% on its profit. (9) Required: (a) (b) Analyse the transactions and apply the accrual basis of accounting to prepare the journal entries and the adjusting journal entries for AirTech Pte Ltd for the year ending 20X2. Dates and narratives must be clearly shown. The sequence and numbering system of the journal entries are to follow the order and number system given in the question. (38 marks) After incorporating the necessary journal entries and adjusted journal entries, present: (1) The statement of comprehensive income of AirTech Pte Ltd for the year ending 20X2 and (7 marks) (11) The statement of financial position of AirTech Pte Ltd as at 31 December 20X2. (10 marks)
Expert Answer:
Related Book For
Accounting
ISBN: 978-1118608227
9th edition
Authors: Lew Edwards, John Medlin, Keryn Chalmers, Andreas Hellmann, Claire Beattie, Jodie Maxfield, John Hoggett
Posted Date:
Students also viewed these accounting questions
-
The unadjusted trial balance and adjustment data of Smith Real Estate Appraisal Company at June 30, 2012, follow: Adjustment data at June 30, 2012: a. Prepaid insurance expired, $400. b. Accrued...
-
The unadjusted trial balance and adjustment data of Elias Real Estate Appraisal Company at June 30, 2012, follow: Adjustment data at June 30, 2012: a. Prepaid insurance expired, $300. b. Accrued...
-
The unadjusted trial balance and adjustment data of Elias Real Estate Appraisal Company at June 30, 2012, follow: Adjustment data at June 30, 2012: a. Prepaid insurance expired, $300. b. Accrued...
-
Interpret the graph COVID-19 LITERACY SCALE 90 80 70 60 666 6 50 40 30 20 10 01 02 Q3 04 Q5 06 07 Q8 a9 Q10 Q11 Q12 Q13 Q14 Q15 Q16 Q17 Science Non-Science Figure 1. COVID-19 LITERARY SCALE
-
HORIZONTAL ANALYSIS OF COMPARATIVE FINANCIAL STATEMENTS Amounts from the comparative income statement and balance sheet of Johnson Stores, Inc., for the last two years are as follows: REQUIRED...
-
A spectrum has a signal-to-noise ratio of 8/1. How many spectra must be averaged to increase the signal-to-noise ratio to 20/1?
-
True or False. The stiffness of a rotating shaft can be altered by changing the location of its bearings.
-
Te assets and liabilities of Weston, Inc., as of December 31, 2014, and revenues and expenses for the year ended on that date follow: Beginning retained earnings was $109,600, and dividends declared...
-
On 1 August 2022, Jack, with the written approval of Mega Phones Board, then approaches Jill from Techworld to supply 500 Apple iPhones Mark XYZ, which have recently been released, for a total price...
-
Prepare journal entries for the above transactions. Aylmer Industries Inc. (Aylmer) has been in business since 2018. Aylmer has two main business segments. This first segment is the construction of...
-
Zaidah plans a raised flower bed measuring 2 feet high by 15 feet wide by 24 feet long. The mulch, soil and peat mixture used to fill the raised bed costs $12.75 per cubic yard. What is the total...
-
Suppose that {(t), (t)} is a fundamental set of solutions for y" + Py' + poy = 0. (a) Write $1 M Explain why this matrix is invertible (Hint: Think about Wronskians) (b) Suppose that = c1+ C22 is a...
-
The company has three members: P holds 50 000 shares; Q and R hold 20 000 shares each. The members have had a disagreement about the value of the land and buildings and their respective...
-
Solve the following partial differential equations using the explicit method. For the space discretization use three-point central difference approximations with ax=1/40 and 1, =.5. i) E du at d'u du...
-
Last year you decided to start up a new business - Heavenly Books Inc., an off-campus bookstore where students can purchase textbooks and supplies at reduced prices. Twenty percent on sales were for...
-
Basic growth ratio-1. Consider the following data for the year ended December 31. 2012: R.Co. J Co. P 200 500 120 Earnings per share Market price per ordinary share Dividend per ordinary share...
-
Consider an average hourly rate of $70 and an average of 1800 hours worked per employee per year for the 40 employees. They do 7 hour shifts. Calculate what a company could lose in each scenario; 1-...
-
Suppose the index goes to 18 percent in year 5. What is the effective cost of the unrestricted ARM?
-
Copeland Hotels Ltd provide three levels of rooms in their hotels. The following planning data are provided for the year ended 31 December 2016: Deluxe Suite Superior Suite Presidential Suite Rate...
-
Barretts Boots Ltd has traditionally made sales for cash and on credit only. Management has resisted accepting credit cards on the basis that the business would lose on average a credit card fee of...
-
Tymonns Traders Ltd uses sales and purchases journals in its accounting system. The following transactions occurred during April 2016. April 5 8 10 16 19 26 29 Purchased merchandise on account from...
-
Figure P18-39 shows two similar unit pulse waveforms. The only difference is that the first pulse is positive from \(-T / 2\) to \(T / 2\), while the second pulse goes from \(+\mathrm{A}\) to...
-
Identify the essential parts of the definition of auditing.
-
Contrast the activities of independent, internal, and governmental auditors.
Study smarter with the SolutionInn App