Mahima Enterprise Trial balance as at 30 June 2021 DEBIT CREDIT $ $ Double story building 350,000
Question:
Mahima Enterprise
Trial balance as at 30 June 2021
DEBIT | CREDIT | |
$ | $ | |
Double story building | 350,000 | |
Accumulated depreciation – Freehold property | 50,000 | |
Machinery | 220,000 | |
Accumulated depreciation – Machinery | 104,500 | |
Purchases | 720,000 | |
Sales | 1,150,000 | |
Inventory as at 1 July 2020 | 130,000 | |
Discount allowed | 44,000 | |
Discount received | 13,800 | |
Return Outwards | 44,000 | |
Staff salaries | 173,700 | |
Bad debts | 12,900 | |
Loan interest | 12,000 | |
Maintenance | 48,900 | |
Mortgage payable | 102,500 | |
Trade receivables | 115,000 | |
Cash in hand | 850 | |
Cash at bank | 4,200 | |
Drawings | 79,950 | |
Allowance for receivables | 1,700 | |
7% long term loan | 80,000 | |
Capital | 365,000 | |
1,911,500 | 1,911,500 |
Additional information:
- Closing inventory as of 30 June 2021 has been valued at $117,500.
- Staff salaries need to be accrued by $2,700.
- Maintenance(contract) is prepaid by $700.
- The allowance for receivables is to be adjusted 2% of trade receivables.
- Depreciation for the year ended 30 June 2021 to be charged as follows:
Asset | Method | Percentage per annum |
Freehold property | Straight line | 1.5% |
Machinery | Reducing balance | 25% |
REQUIRED:
a. Prepare Statement of Comprehensive Income for the year ended 30 June 2021;
b. Prepare Statement of Financial Position as at 30 June 2021.
Cost Management Measuring Monitoring and Motivating Performance
ISBN: 978-0470769423
2nd edition
Authors: Leslie G. Eldenburg, Susan K. Wolcott