Chelsey Laverne is the owner of Pronto Jewellers, and has provided the following list of the...

 

 

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Chelsey Laverne is the owner of Pronto Jewellers, and has provided the following list of the firm's assets and liabilities as at 30th June 20XX :- Stocks Asset and Liabilities Listing as at 30th June 20XX $93,000 Creditors $5,100 Loan Eastpac (repayable in 5 $45,000 years) Net Profit $12,000 Drawings $6,100 Shop Fittings $18,000 Safe Deposit Box $30,000 Office Equipment $23,150 Cash at Bank $8,850 Debtors Tax Payable $12,000 $6,000 Capital ? Wages Payable $7,000 Chelsey has sought your assistance to :- a. Explain what is meant by the term "Owner's Equity" (2 marks) b. Calculate Capital as at 30th June 20XX using the Accounting Equation formula. (2 marks) c. Prepare a fully classified Balance Sheet for Pronto Jewellers as 30th June 20XX showing clearly the classification of each item as either Current Assets, Non-Current Assets, Current Liability and Non-Current Liability. (6 marks) Pronto Jewellers Pty Ltd Balance Sheet as at 30th June, 20XX $ EA Chelsey Laverne is the owner of Pronto Jewellers, and has provided the following list of the firm's assets and liabilities as at 30th June 20XX :- Stocks Asset and Liabilities Listing as at 30th June 20XX $93,000 Creditors $5,100 Loan Eastpac (repayable in 5 $45,000 years) Net Profit $12,000 Drawings $6,100 Shop Fittings $18,000 Safe Deposit Box $30,000 Office Equipment $23,150 Cash at Bank $8,850 Debtors Tax Payable $12,000 $6,000 Capital ? Wages Payable $7,000 Chelsey has sought your assistance to :- a. Explain what is meant by the term "Owner's Equity" (2 marks) b. Calculate Capital as at 30th June 20XX using the Accounting Equation formula. (2 marks) c. Prepare a fully classified Balance Sheet for Pronto Jewellers as 30th June 20XX showing clearly the classification of each item as either Current Assets, Non-Current Assets, Current Liability and Non-Current Liability. (6 marks) Pronto Jewellers Pty Ltd Balance Sheet as at 30th June, 20XX $ EA