Drive 8:01 PM Sun 22 Aug 2. Sunrise Company was set up on April 1, 2019....

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Drive 8:01 PM Sun 22 Aug 2. Sunrise Company was set up on April 1, 2019. Its Unadjusted trial balance on April 30, 2019 was as follows: Buildings Office equipment Office supplies Trade receivables Cash Prepaid rent Trade payables Unearned revenue Share capital Dividends Revenue from services Salaries expense Electricity expense Total Sunrise Company Limited Unadjusted Trial Balance, April 30, 2019 Description Debit (Rs) 375,000 300,000 53,500 41,000 15,750 90,000 25,000 77,500 9,500 987,250 Credit (Rs) 25,500 40,000 500,000 421,750 987,250 The following additional information is available: (a) Services for Rs 22,500 were provided to customers in April although no bills have been raised. (b) Salaries of staff for the second fortnight totaling Rs 77,500 have not been paid. (c) The inventory of office supplies on March 31 is Rs 24,250. (d) The building is expected to be useful for 10 years and the office equipment Drive 8:02 PM Sun 22 Aug Revenue from services Salaries expense Electricity expense Total 77,500 9,500 987,250 Required: 421,750 987,250 The following additional information is available: (a) Services for Rs 22,500 were provided to customers in April although no bills have been raised. (b) Salaries of staff for the second fortnight totaling Rs 77,500 have not been paid. (c) The inventory of office supplies on March 31 is Rs 24,250. (d) The building is expected to be useful for 10 years and the office equipment has an estimated useful life of four years. None of these assets are expected to have any salvage value. (e) Services for Rs 18,000 were provided to customers who had made full advance payments. (f) The company paid six month's rent as advance on April 1. (g) The telephone company sent a bill for Rs 12,000 for April after the close of the month's transactions. Required: A. Prepare adjusting entries and post them to "T" accounts. - 25 Marks B. Prepare the April adjusted trial balance, balance sheet and statement of profit and loss. - 30 Marks 3. Modern Furniture Company sold 2,250 Tables during 2019 at Rs 40,000 each. It had a beginning inventory on January 1, 2019 of 500 tables at a cost of Rs 25,000 each. The following purchases were made during the year ended December 31, 2019: March 500 tables @ Rs 27,500; June 250 tables @ Rs 30,000; August 750 tables @ Rs 32,500; November 500 tables @ Rs 35,000. The company uses the periodic inventory system. A. Prepare a schedule to compute the cost of goods available for sale during the year. B. Determine the ending inventory on December 31, 2019 and cost of goods sold using (a) FIFO, (b) LIFO and (c) WAC - 10 Marks Drive 8:01 PM Sun 22 Aug 2. Sunrise Company was set up on April 1, 2019. Its Unadjusted trial balance on April 30, 2019 was as follows: Buildings Office equipment Office supplies Trade receivables Cash Prepaid rent Trade payables Unearned revenue Share capital Dividends Revenue from services Salaries expense Electricity expense Total Sunrise Company Limited Unadjusted Trial Balance, April 30, 2019 Description Debit (Rs) 375,000 300,000 53,500 41,000 15,750 90,000 25,000 77,500 9,500 987,250 Credit (Rs) 25,500 40,000 500,000 421,750 987,250 The following additional information is available: (a) Services for Rs 22,500 were provided to customers in April although no bills have been raised. (b) Salaries of staff for the second fortnight totaling Rs 77,500 have not been paid. (c) The inventory of office supplies on March 31 is Rs 24,250. (d) The building is expected to be useful for 10 years and the office equipment Drive 8:02 PM Sun 22 Aug Revenue from services Salaries expense Electricity expense Total 77,500 9,500 987,250 Required: 421,750 987,250 The following additional information is available: (a) Services for Rs 22,500 were provided to customers in April although no bills have been raised. (b) Salaries of staff for the second fortnight totaling Rs 77,500 have not been paid. (c) The inventory of office supplies on March 31 is Rs 24,250. (d) The building is expected to be useful for 10 years and the office equipment has an estimated useful life of four years. None of these assets are expected to have any salvage value. (e) Services for Rs 18,000 were provided to customers who had made full advance payments. (f) The company paid six month's rent as advance on April 1. (g) The telephone company sent a bill for Rs 12,000 for April after the close of the month's transactions. Required: A. Prepare adjusting entries and post them to "T" accounts. - 25 Marks B. Prepare the April adjusted trial balance, balance sheet and statement of profit and loss. - 30 Marks 3. Modern Furniture Company sold 2,250 Tables during 2019 at Rs 40,000 each. It had a beginning inventory on January 1, 2019 of 500 tables at a cost of Rs 25,000 each. The following purchases were made during the year ended December 31, 2019: March 500 tables @ Rs 27,500; June 250 tables @ Rs 30,000; August 750 tables @ Rs 32,500; November 500 tables @ Rs 35,000. The company uses the periodic inventory system. A. Prepare a schedule to compute the cost of goods available for sale during the year. B. Determine the ending inventory on December 31, 2019 and cost of goods sold using (a) FIFO, (b) LIFO and (c) WAC - 10 Marks

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