The following is an extract of balances from Nicholas Enterprise, as well as some additional information at the end...

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The following is an extract of balances from Nicholas Enterprise, as well as some additional information at the end of their financial year. Balance for Nicholas Agribusiness Products Enterprise at 30 June 2020 GHS 198,000 300,000 20,000 245,000 3,000 110,000 70,000 Sale of Fruit Juice Sale of Fertilizer Opening Inventory Purchases Telephone Salaries Rent received Insurance Stationery Rent Paid Medical Expenses Repairs - Furniture & Equipment Bad Debts Provision for Doubtful Debts Commission received Capital: Nicholas Long-term loan Furniture and equipment Accumulation depreciation: Furniture & Equip. Trade receivables Drawings Bank 8,000 9,000 10,000 5,000 4,500 3,500 800 20,000 108,000 100,000 360,000 72,000 60,800 12,000 18.000 Additional information (1) Accrued salaries, GHS 20,000. (ii) Prepaid insurance, GHS 2.000. (iii) Stationery on hand, GHS 3,000. (iv) A provision for Doubtful Debts of 2% of trade receivables must be created. (v) Commission received in advance, GHS 5,000. (vi) Accrued rent receivable, GHS 8,000 (rent receivable in arrears). (vi) Depreciation of 10% on the cost price of furniture and equipment must be taken into account. (vii) Closing Inventory, GHS25,000 (ix) Monthly rent payable is GHS1,000 (x) The loan amount is payable in 5 years (xi) Motor Vehicle purchased on credit from Pato amounting to GHS 50,000 has not been recorded and depreciation is to be provided at the rate of 25% (xii) The interest on the loan at the rate of 20% for the year ended 30 June 2020 was debited by the bank on 3 July 2020. Required Prepare the following: a) Pre-Adjustment trial balance as at 30 June 2020, b) Journal Entries for all the required adjustments, e) Pust the required adjustments and the Post Adjustment Trial Balance as at 30 June 2020 d) Income Statement for the year ended 30 June 2020; and e) Statement of the Financial Position as at 30 June 2020

Answer rating: 100% (QA)

A Pre Adjustment Trial Balance as at 30 June 2020 Account Debit GHS Credit GHS Sale of Fruit Juice 198 000 Sale of Fertilizer 300 000 Opening Inventory 245 000 Purchases 110 000 Telephone 3 000 Salari View the full answer