Francis Book Shop (FBS) is a business located in Hamilton Francis, the owner started the store
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(i) Using the cash bases prepare the following financial statements for francis book shop
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On 1 July 2019, Francis deposited his savings into a business bank account to start up the business. On 1 July 2019, a bank loan (repayable over a 15-year period) was approved to FBS and was deposited into the business bank account On 1 July 2019, Equipment and Fittings were purchased using cash. The equipment and fittings were expected to last 5 years with a scrap value of $5.000. On 1 July 2019, Rental Bond for business premises was paid (this bond will be returned at the end of the five vear lease if the premises remain in good condition) On 1 January 2020, Francis invested his vehicle into the business to deliver goods to customers. The vehicle is expected to last 10 years with no scrap value. On 1 September 2019, Francis purchased a new projector for his brother. Francis purchased these items using funds from the business bank account The projector has expected life for five years with $100 residual value On 1 December 2019, Francis purchased a TV on credit for the staff common room [payment was due in 3 years]. The TV is expected to last for 5 years with $500 as its scrap value. Cash collected from customers during the year [the amount includes $18,000 for goods $119.000 to be provided next vear] Still owing from customers at the end of the year (to be collected next year) Cash paid for products to resell in the business Owing for products at the end of the year (to be paid next vear) Cost of unsold products on hand at the end of the vear (to be sold next year) Operating Expenses paid (includes Wages, Advertising, Phone and Electricity) Operating Expenses owing and unpaid for the year ended 30 June 2020 Rent of business premises: Monthly rental 15 paid in advance (13 months have been paid $16,900 between 1 July 2019 and 31 July 2020) Francis made cash drawings from the business bank account for his personal expenses during the year Bank long-tem loan principal repavnents Mwere made Interest paid on the bank loan (105) On 30 June 2020, Francis went to Dunedin for a road trip. He paid for the holiday using personal funds Francis arranged a bank overdrafn fecility for hit basiness The Cash at Bank balance at 30 June 2020 was $28.350 $48,000 $43,500 $15,000 $12,000 $10,000 $6,000 $5,000 $20,000 $56.000 $10.000 $30,000 $41.000 $3,000 $28,000 $2.900 $4.350 $5,000 $100,000 On 1 July 2019, Francis deposited his savings into a business bank account to start up the business. On 1 July 2019, a bank loan (repayable over a 15-year period) was approved to FBS and was deposited into the business bank account On 1 July 2019, Equipment and Fittings were purchased using cash. The equipment and fittings were expected to last 5 years with a scrap value of $5.000. On 1 July 2019, Rental Bond for business premises was paid (this bond will be returned at the end of the five vear lease if the premises remain in good condition) On 1 January 2020, Francis invested his vehicle into the business to deliver goods to customers. The vehicle is expected to last 10 years with no scrap value. On 1 September 2019, Francis purchased a new projector for his brother. Francis purchased these items using funds from the business bank account The projector has expected life for five years with $100 residual value On 1 December 2019, Francis purchased a TV on credit for the staff common room [payment was due in 3 years]. The TV is expected to last for 5 years with $500 as its scrap value. Cash collected from customers during the year [the amount includes $18,000 for goods $119.000 to be provided next vear] Still owing from customers at the end of the year (to be collected next year) Cash paid for products to resell in the business Owing for products at the end of the year (to be paid next vear) Cost of unsold products on hand at the end of the vear (to be sold next year) Operating Expenses paid (includes Wages, Advertising, Phone and Electricity) Operating Expenses owing and unpaid for the year ended 30 June 2020 Rent of business premises: Monthly rental 15 paid in advance (13 months have been paid $16,900 between 1 July 2019 and 31 July 2020) Francis made cash drawings from the business bank account for his personal expenses during the year Bank long-tem loan principal repavnents Mwere made Interest paid on the bank loan (105) On 30 June 2020, Francis went to Dunedin for a road trip. He paid for the holiday using personal funds Francis arranged a bank overdrafn fecility for hit basiness The Cash at Bank balance at 30 June 2020 was $28.350 $48,000 $43,500 $15,000 $12,000 $10,000 $6,000 $5,000 $20,000 $56.000 $10.000 $30,000 $41.000 $3,000 $28,000 $2.900 $4.350 $5,000 $100,000
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Francis Book Shop Income Statement For the month ended June 30 2020 Income Col... View the full answer
Related Book For
Horngrens Accounting
ISBN: 978-0133855371
10th Canadian edition Volume 1
Authors: Tracie L. Miller-Nobles, Brenda L. Mattison, Ella Mae Matsumura, Carol A. Meissner, Jo-Ann L. Johnston, Peter R. Norwood
Posted Date:
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