John Phelps has run a small business for many years and has never kept adequate accounting...
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John Phelps has run a small business for many years and has never kept adequate accounting records. However, a need to obtain a loan from the Bank of Make It Flow, for the expansion of his business has necessitated the preparation of final accounts. As such, he has contracted a medium size accounting firm. WAD & Associates to assist him in preparing a full set of accounting records. You were recently employed to WAD & Associates and have been assigned the task to prepare the final accounts for John Phelps. You were able to ascertain the following information for the year ended December 31, 2020: 1. John Phelps bank transactions for the year January 1 through December 31. 2020 were as follows: Receipts Trade receivables Debit card S Bank Account Payments 430,100 Trade payables 40,000 Electricity 470,100 Rates and rent Loan principal Drawings Computer equipment Overdraft intered Salaries & wages Accounting fee S 272,500 4,500 23,600 25,000 1,250 150,000 750 26,000 7,500 511,100 2. The bank account had a favourable balance on December 31, 2020 of 547.900 before considering Note 3(e) and Note 6 below. 3. During the year a. Discounts allowed by trade payables amounted to $1,350 and allowed to trade receivables amounted $1,840. b. The financial year goods returned by trade receivables amounted to $1,600 and goods returned to trade payables amounted to 56,900 e. The financial year a trade debt of $1.200 owed by Lettie Graham was off-set against the $2.000 owing to the same Lottie Graham a trade creditor. d. A customer, Janet Hutton bought poods using a debit card. She returned goods amounting to $700 and was repaid from the Debit Card takings before applying the commission (see note in 7) goods amounting to $700 and was repaid from the Debit Card takings before applying the commission (see note No. 7) e. John Phelps puts a further $135,000 into the bank account of the business to shore up working capital. This is not yet reflected in the bank balance. 4. The closing trade receivables include $750 in respect of a bad debt that should be written off. 5. The computer equipment was purchased on April 9, 2020 Depreciation should be calculated on the computer equipment on the straight line basis at a rate of 20% per annum on cost. It is the policy of the business to charge a full month's depreciation in the month of acquisition or disposal 6. On April 1, 2020 John Phelps received a loan of $75,000 from his mother. Interest should be charged on the reducing balance at a rate of 10% per annum The first interest payment is to be made on March 31, 2021. The principalis being paid in equal instalments of $25,000 commencing on September 30, 2020, September 30, 2021 and September 30, 2002. Interest on loan was outstanding at December 31, 2020. 7. For some of the sales debit cards are accepted. John Phelps pays 2.5% debit card commission on gross debit card sales. 8. The balances at the end of each year are as follows: Inventory Trade receivables Prepaid rent Fixtures (net) Trade payables Debit card receivables Required: December 31, 2019 December 31, 2020 S S 41,000 29,300 500 20,000 19,500 1,325 a. Prepare the Statement of Affairs as at January 1, 2020 b. Prepare the Trade Receivables Control Account c. Prepare the Trade Payables Control Accounts 48,500 35,750 600 19,000 19,000 750 (10 marks) (3.5 marks) (7 marks) a. Prepare the Statement of Affairs as at January 1, 2020 b. Prepare the Trade Receivables Control Account c. Prepare the Trade Payables Control Accounts. d. Prepare the Debit Card Receivables Account (10 marks) (3.5 marks) (7 marks) (2.5 marks) e. Prepare the Income Statement for the year ended December 31, 2020 (25 marks) f. Prepare the Statement of changes in owner's equity for the year ended December 31, 2020 (7 marks) g. Prepare comparatively the Statement of Financial Position as at the year ended December 31, 2020 (25 marks) h. Prepare a Statement of Cashflow for the ended December 31, 2020. (20 marks) John Phelps has run a small business for many years and has never kept adequate accounting records. However, a need to obtain a loan from the Bank of Make It Flow, for the expansion of his business has necessitated the preparation of final accounts. As such, he has contracted a medium size accounting firm. WAD & Associates to assist him in preparing a full set of accounting records. You were recently employed to WAD & Associates and have been assigned the task to prepare the final accounts for John Phelps. You were able to ascertain the following information for the year ended December 31, 2020: 1. John Phelps bank transactions for the year January 1 through December 31. 2020 were as follows: Receipts Trade receivables Debit card S Bank Account Payments 430,100 Trade payables 40,000 Electricity 470,100 Rates and rent Loan principal Drawings Computer equipment Overdraft intered Salaries & wages Accounting fee S 272,500 4,500 23,600 25,000 1,250 150,000 750 26,000 7,500 511,100 2. The bank account had a favourable balance on December 31, 2020 of 547.900 before considering Note 3(e) and Note 6 below. 3. During the year a. Discounts allowed by trade payables amounted to $1,350 and allowed to trade receivables amounted $1,840. b. The financial year goods returned by trade receivables amounted to $1,600 and goods returned to trade payables amounted to 56,900 e. The financial year a trade debt of $1.200 owed by Lettie Graham was off-set against the $2.000 owing to the same Lottie Graham a trade creditor. d. A customer, Janet Hutton bought poods using a debit card. She returned goods amounting to $700 and was repaid from the Debit Card takings before applying the commission (see note in 7) goods amounting to $700 and was repaid from the Debit Card takings before applying the commission (see note No. 7) e. John Phelps puts a further $135,000 into the bank account of the business to shore up working capital. This is not yet reflected in the bank balance. 4. The closing trade receivables include $750 in respect of a bad debt that should be written off. 5. The computer equipment was purchased on April 9, 2020 Depreciation should be calculated on the computer equipment on the straight line basis at a rate of 20% per annum on cost. It is the policy of the business to charge a full month's depreciation in the month of acquisition or disposal 6. On April 1, 2020 John Phelps received a loan of $75,000 from his mother. Interest should be charged on the reducing balance at a rate of 10% per annum The first interest payment is to be made on March 31, 2021. The principalis being paid in equal instalments of $25,000 commencing on September 30, 2020, September 30, 2021 and September 30, 2002. Interest on loan was outstanding at December 31, 2020. 7. For some of the sales debit cards are accepted. John Phelps pays 2.5% debit card commission on gross debit card sales. 8. The balances at the end of each year are as follows: Inventory Trade receivables Prepaid rent Fixtures (net) Trade payables Debit card receivables Required: December 31, 2019 December 31, 2020 S S 41,000 29,300 500 20,000 19,500 1,325 a. Prepare the Statement of Affairs as at January 1, 2020 b. Prepare the Trade Receivables Control Account c. Prepare the Trade Payables Control Accounts 48,500 35,750 600 19,000 19,000 750 (10 marks) (3.5 marks) (7 marks) a. Prepare the Statement of Affairs as at January 1, 2020 b. Prepare the Trade Receivables Control Account c. Prepare the Trade Payables Control Accounts. d. Prepare the Debit Card Receivables Account (10 marks) (3.5 marks) (7 marks) (2.5 marks) e. Prepare the Income Statement for the year ended December 31, 2020 (25 marks) f. Prepare the Statement of changes in owner's equity for the year ended December 31, 2020 (7 marks) g. Prepare comparatively the Statement of Financial Position as at the year ended December 31, 2020 (25 marks) h. Prepare a Statement of Cashflow for the ended December 31, 2020. (20 marks) John Phelps has run a small business for many years and has never kept adequate accounting records. However, a need to obtain a loan from the Bank of Make It Flow, for the expansion of his business has necessitated the preparation of final accounts. As such, he has contracted a medium size accounting firm. WAD & Associates to assist him in preparing a full set of accounting records. You were recently employed to WAD & Associates and have been assigned the task to prepare the final accounts for John Phelps. You were able to ascertain the following information for the year ended December 31, 2020: 1. John Phelps bank transactions for the year January 1 through December 31. 2020 were as follows: Receipts Trade receivables Debit card S Bank Account Payments 430,100 Trade payables 40,000 Electricity 470,100 Rates and rent Loan principal Drawings Computer equipment Overdraft intered Salaries & wages Accounting fee S 272,500 4,500 23,600 25,000 1,250 150,000 750 26,000 7,500 511,100 2. The bank account had a favourable balance on December 31, 2020 of 547.900 before considering Note 3(e) and Note 6 below. 3. During the year a. Discounts allowed by trade payables amounted to $1,350 and allowed to trade receivables amounted $1,840. b. The financial year goods returned by trade receivables amounted to $1,600 and goods returned to trade payables amounted to 56,900 e. The financial year a trade debt of $1.200 owed by Lettie Graham was off-set against the $2.000 owing to the same Lottie Graham a trade creditor. d. A customer, Janet Hutton bought poods using a debit card. She returned goods amounting to $700 and was repaid from the Debit Card takings before applying the commission (see note in 7) goods amounting to $700 and was repaid from the Debit Card takings before applying the commission (see note No. 7) e. John Phelps puts a further $135,000 into the bank account of the business to shore up working capital. This is not yet reflected in the bank balance. 4. The closing trade receivables include $750 in respect of a bad debt that should be written off. 5. The computer equipment was purchased on April 9, 2020 Depreciation should be calculated on the computer equipment on the straight line basis at a rate of 20% per annum on cost. It is the policy of the business to charge a full month's depreciation in the month of acquisition or disposal 6. On April 1, 2020 John Phelps received a loan of $75,000 from his mother. Interest should be charged on the reducing balance at a rate of 10% per annum The first interest payment is to be made on March 31, 2021. The principalis being paid in equal instalments of $25,000 commencing on September 30, 2020, September 30, 2021 and September 30, 2002. Interest on loan was outstanding at December 31, 2020. 7. For some of the sales debit cards are accepted. John Phelps pays 2.5% debit card commission on gross debit card sales. 8. The balances at the end of each year are as follows: Inventory Trade receivables Prepaid rent Fixtures (net) Trade payables Debit card receivables Required: December 31, 2019 December 31, 2020 S S 41,000 29,300 500 20,000 19,500 1,325 a. Prepare the Statement of Affairs as at January 1, 2020 b. Prepare the Trade Receivables Control Account c. Prepare the Trade Payables Control Accounts 48,500 35,750 600 19,000 19,000 750 (10 marks) (3.5 marks) (7 marks) a. Prepare the Statement of Affairs as at January 1, 2020 b. Prepare the Trade Receivables Control Account c. Prepare the Trade Payables Control Accounts. d. Prepare the Debit Card Receivables Account (10 marks) (3.5 marks) (7 marks) (2.5 marks) e. Prepare the Income Statement for the year ended December 31, 2020 (25 marks) f. Prepare the Statement of changes in owner's equity for the year ended December 31, 2020 (7 marks) g. Prepare comparatively the Statement of Financial Position as at the year ended December 31, 2020 (25 marks) h. Prepare a Statement of Cashflow for the ended December 31, 2020. (20 marks) John Phelps has run a small business for many years and has never kept adequate accounting records. However, a need to obtain a loan from the Bank of Make It Flow, for the expansion of his business has necessitated the preparation of final accounts. As such, he has contracted a medium size accounting firm. WAD & Associates to assist him in preparing a full set of accounting records. You were recently employed to WAD & Associates and have been assigned the task to prepare the final accounts for John Phelps. You were able to ascertain the following information for the year ended December 31, 2020: 1. John Phelps bank transactions for the year January 1 through December 31. 2020 were as follows: Receipts Trade receivables Debit card S Bank Account Payments 430,100 Trade payables 40,000 Electricity 470,100 Rates and rent Loan principal Drawings Computer equipment Overdraft intered Salaries & wages Accounting fee S 272,500 4,500 23,600 25,000 1,250 150,000 750 26,000 7,500 511,100 2. The bank account had a favourable balance on December 31, 2020 of 547.900 before considering Note 3(e) and Note 6 below. 3. During the year a. Discounts allowed by trade payables amounted to $1,350 and allowed to trade receivables amounted $1,840. b. The financial year goods returned by trade receivables amounted to $1,600 and goods returned to trade payables amounted to 56,900 e. The financial year a trade debt of $1.200 owed by Lettie Graham was off-set against the $2.000 owing to the same Lottie Graham a trade creditor. d. A customer, Janet Hutton bought poods using a debit card. She returned goods amounting to $700 and was repaid from the Debit Card takings before applying the commission (see note in 7) goods amounting to $700 and was repaid from the Debit Card takings before applying the commission (see note No. 7) e. John Phelps puts a further $135,000 into the bank account of the business to shore up working capital. This is not yet reflected in the bank balance. 4. The closing trade receivables include $750 in respect of a bad debt that should be written off. 5. The computer equipment was purchased on April 9, 2020 Depreciation should be calculated on the computer equipment on the straight line basis at a rate of 20% per annum on cost. It is the policy of the business to charge a full month's depreciation in the month of acquisition or disposal 6. On April 1, 2020 John Phelps received a loan of $75,000 from his mother. Interest should be charged on the reducing balance at a rate of 10% per annum The first interest payment is to be made on March 31, 2021. The principalis being paid in equal instalments of $25,000 commencing on September 30, 2020, September 30, 2021 and September 30, 2002. Interest on loan was outstanding at December 31, 2020. 7. For some of the sales debit cards are accepted. John Phelps pays 2.5% debit card commission on gross debit card sales. 8. The balances at the end of each year are as follows: Inventory Trade receivables Prepaid rent Fixtures (net) Trade payables Debit card receivables Required: December 31, 2019 December 31, 2020 S S 41,000 29,300 500 20,000 19,500 1,325 a. Prepare the Statement of Affairs as at January 1, 2020 b. Prepare the Trade Receivables Control Account c. Prepare the Trade Payables Control Accounts 48,500 35,750 600 19,000 19,000 750 (10 marks) (3.5 marks) (7 marks) a. Prepare the Statement of Affairs as at January 1, 2020 b. Prepare the Trade Receivables Control Account c. Prepare the Trade Payables Control Accounts. d. Prepare the Debit Card Receivables Account (10 marks) (3.5 marks) (7 marks) (2.5 marks) e. Prepare the Income Statement for the year ended December 31, 2020 (25 marks) f. Prepare the Statement of changes in owner's equity for the year ended December 31, 2020 (7 marks) g. Prepare comparatively the Statement of Financial Position as at the year ended December 31, 2020 (25 marks) h. Prepare a Statement of Cashflow for the ended December 31, 2020. (20 marks) John Phelps has run a small business for many years and has never kept adequate accounting records. However, a need to obtain a loan from the Bank of Make It Flow, for the expansion of his business has necessitated the preparation of final accounts. As such, he has contracted a medium size accounting firm. WAD & Associates to assist him in preparing a full set of accounting records. You were recently employed to WAD & Associates and have been assigned the task to prepare the final accounts for John Phelps. You were able to ascertain the following information for the year ended December 31, 2020: 1. John Phelps bank transactions for the year January 1 through December 31. 2020 were as follows: Receipts Trade receivables Debit card S Bank Account Payments 430,100 Trade payables 40,000 Electricity 470,100 Rates and rent Loan principal Drawings Computer equipment Overdraft intered Salaries & wages Accounting fee S 272,500 4,500 23,600 25,000 1,250 150,000 750 26,000 7,500 511,100 2. The bank account had a favourable balance on December 31, 2020 of 547.900 before considering Note 3(e) and Note 6 below. 3. During the year a. Discounts allowed by trade payables amounted to $1,350 and allowed to trade receivables amounted $1,840. b. The financial year goods returned by trade receivables amounted to $1,600 and goods returned to trade payables amounted to 56,900 e. The financial year a trade debt of $1.200 owed by Lettie Graham was off-set against the $2.000 owing to the same Lottie Graham a trade creditor. d. A customer, Janet Hutton bought poods using a debit card. She returned goods amounting to $700 and was repaid from the Debit Card takings before applying the commission (see note in 7) goods amounting to $700 and was repaid from the Debit Card takings before applying the commission (see note No. 7) e. John Phelps puts a further $135,000 into the bank account of the business to shore up working capital. This is not yet reflected in the bank balance. 4. The closing trade receivables include $750 in respect of a bad debt that should be written off. 5. The computer equipment was purchased on April 9, 2020 Depreciation should be calculated on the computer equipment on the straight line basis at a rate of 20% per annum on cost. It is the policy of the business to charge a full month's depreciation in the month of acquisition or disposal 6. On April 1, 2020 John Phelps received a loan of $75,000 from his mother. Interest should be charged on the reducing balance at a rate of 10% per annum The first interest payment is to be made on March 31, 2021. The principalis being paid in equal instalments of $25,000 commencing on September 30, 2020, September 30, 2021 and September 30, 2002. Interest on loan was outstanding at December 31, 2020. 7. For some of the sales debit cards are accepted. John Phelps pays 2.5% debit card commission on gross debit card sales. 8. The balances at the end of each year are as follows: Inventory Trade receivables Prepaid rent Fixtures (net) Trade payables Debit card receivables Required: December 31, 2019 December 31, 2020 S S 41,000 29,300 500 20,000 19,500 1,325 a. Prepare the Statement of Affairs as at January 1, 2020 b. Prepare the Trade Receivables Control Account c. Prepare the Trade Payables Control Accounts 48,500 35,750 600 19,000 19,000 750 (10 marks) (3.5 marks) (7 marks) a. Prepare the Statement of Affairs as at January 1, 2020 b. Prepare the Trade Receivables Control Account c. Prepare the Trade Payables Control Accounts. d. Prepare the Debit Card Receivables Account (10 marks) (3.5 marks) (7 marks) (2.5 marks) e. Prepare the Income Statement for the year ended December 31, 2020 (25 marks) f. Prepare the Statement of changes in owner's equity for the year ended December 31, 2020 (7 marks) g. Prepare comparatively the Statement of Financial Position as at the year ended December 31, 2020 (25 marks) h. Prepare a Statement of Cashflow for the ended December 31, 2020. (20 marks) John Phelps has run a small business for many years and has never kept adequate accounting records. However, a need to obtain a loan from the Bank of Make It Flow, for the expansion of his business has necessitated the preparation of final accounts. As such, he has contracted a medium size accounting firm. WAD & Associates to assist him in preparing a full set of accounting records. You were recently employed to WAD & Associates and have been assigned the task to prepare the final accounts for John Phelps. You were able to ascertain the following information for the year ended December 31, 2020: 1. John Phelps bank transactions for the year January 1 through December 31. 2020 were as follows: Receipts Trade receivables Debit card S Bank Account Payments 430,100 Trade payables 40,000 Electricity 470,100 Rates and rent Loan principal Drawings Computer equipment Overdraft intered Salaries & wages Accounting fee S 272,500 4,500 23,600 25,000 1,250 150,000 750 26,000 7,500 511,100 2. The bank account had a favourable balance on December 31, 2020 of 547.900 before considering Note 3(e) and Note 6 below. 3. During the year a. Discounts allowed by trade payables amounted to $1,350 and allowed to trade receivables amounted $1,840. b. The financial year goods returned by trade receivables amounted to $1,600 and goods returned to trade payables amounted to 56,900 e. The financial year a trade debt of $1.200 owed by Lettie Graham was off-set against the $2.000 owing to the same Lottie Graham a trade creditor. d. A customer, Janet Hutton bought poods using a debit card. She returned goods amounting to $700 and was repaid from the Debit Card takings before applying the commission (see note in 7) goods amounting to $700 and was repaid from the Debit Card takings before applying the commission (see note No. 7) e. John Phelps puts a further $135,000 into the bank account of the business to shore up working capital. This is not yet reflected in the bank balance. 4. The closing trade receivables include $750 in respect of a bad debt that should be written off. 5. The computer equipment was purchased on April 9, 2020 Depreciation should be calculated on the computer equipment on the straight line basis at a rate of 20% per annum on cost. It is the policy of the business to charge a full month's depreciation in the month of acquisition or disposal 6. On April 1, 2020 John Phelps received a loan of $75,000 from his mother. Interest should be charged on the reducing balance at a rate of 10% per annum The first interest payment is to be made on March 31, 2021. The principalis being paid in equal instalments of $25,000 commencing on September 30, 2020, September 30, 2021 and September 30, 2002. Interest on loan was outstanding at December 31, 2020. 7. For some of the sales debit cards are accepted. John Phelps pays 2.5% debit card commission on gross debit card sales. 8. The balances at the end of each year are as follows: Inventory Trade receivables Prepaid rent Fixtures (net) Trade payables Debit card receivables Required: December 31, 2019 December 31, 2020 S S 41,000 29,300 500 20,000 19,500 1,325 a. Prepare the Statement of Affairs as at January 1, 2020 b. Prepare the Trade Receivables Control Account c. Prepare the Trade Payables Control Accounts 48,500 35,750 600 19,000 19,000 750 (10 marks) (3.5 marks) (7 marks) a. Prepare the Statement of Affairs as at January 1, 2020 b. Prepare the Trade Receivables Control Account c. Prepare the Trade Payables Control Accounts. d. Prepare the Debit Card Receivables Account (10 marks) (3.5 marks) (7 marks) (2.5 marks) e. Prepare the Income Statement for the year ended December 31, 2020 (25 marks) f. Prepare the Statement of changes in owner's equity for the year ended December 31, 2020 (7 marks) g. Prepare comparatively the Statement of Financial Position as at the year ended December 31, 2020 (25 marks) h. Prepare a Statement of Cashflow for the ended December 31, 2020. (20 marks) John Phelps has run a small business for many years and has never kept adequate accounting records. However, a need to obtain a loan from the Bank of Make It Flow, for the expansion of his business has necessitated the preparation of final accounts. As such, he has contracted a medium size accounting firm. WAD & Associates to assist him in preparing a full set of accounting records. You were recently employed to WAD & Associates and have been assigned the task to prepare the final accounts for John Phelps. You were able to ascertain the following information for the year ended December 31, 2020: 1. John Phelps bank transactions for the year January 1 through December 31. 2020 were as follows: Receipts Trade receivables Debit card S Bank Account Payments 430,100 Trade payables 40,000 Electricity 470,100 Rates and rent Loan principal Drawings Computer equipment Overdraft intered Salaries & wages Accounting fee S 272,500 4,500 23,600 25,000 1,250 150,000 750 26,000 7,500 511,100 2. The bank account had a favourable balance on December 31, 2020 of 547.900 before considering Note 3(e) and Note 6 below. 3. During the year a. Discounts allowed by trade payables amounted to $1,350 and allowed to trade receivables amounted $1,840. b. The financial year goods returned by trade receivables amounted to $1,600 and goods returned to trade payables amounted to 56,900 e. The financial year a trade debt of $1.200 owed by Lettie Graham was off-set against the $2.000 owing to the same Lottie Graham a trade creditor. d. A customer, Janet Hutton bought poods using a debit card. She returned goods amounting to $700 and was repaid from the Debit Card takings before applying the commission (see note in 7) goods amounting to $700 and was repaid from the Debit Card takings before applying the commission (see note No. 7) e. John Phelps puts a further $135,000 into the bank account of the business to shore up working capital. This is not yet reflected in the bank balance. 4. The closing trade receivables include $750 in respect of a bad debt that should be written off. 5. The computer equipment was purchased on April 9, 2020 Depreciation should be calculated on the computer equipment on the straight line basis at a rate of 20% per annum on cost. It is the policy of the business to charge a full month's depreciation in the month of acquisition or disposal 6. On April 1, 2020 John Phelps received a loan of $75,000 from his mother. Interest should be charged on the reducing balance at a rate of 10% per annum The first interest payment is to be made on March 31, 2021. The principalis being paid in equal instalments of $25,000 commencing on September 30, 2020, September 30, 2021 and September 30, 2002. Interest on loan was outstanding at December 31, 2020. 7. For some of the sales debit cards are accepted. John Phelps pays 2.5% debit card commission on gross debit card sales. 8. The balances at the end of each year are as follows: Inventory Trade receivables Prepaid rent Fixtures (net) Trade payables Debit card receivables Required: December 31, 2019 December 31, 2020 S S 41,000 29,300 500 20,000 19,500 1,325 a. Prepare the Statement of Affairs as at January 1, 2020 b. Prepare the Trade Receivables Control Account c. Prepare the Trade Payables Control Accounts 48,500 35,750 600 19,000 19,000 750 (10 marks) (3.5 marks) (7 marks) a. Prepare the Statement of Affairs as at January 1, 2020 b. Prepare the Trade Receivables Control Account c. Prepare the Trade Payables Control Accounts. d. Prepare the Debit Card Receivables Account (10 marks) (3.5 marks) (7 marks) (2.5 marks) e. Prepare the Income Statement for the year ended December 31, 2020 (25 marks) f. Prepare the Statement of changes in owner's equity for the year ended December 31, 2020 (7 marks) g. Prepare comparatively the Statement of Financial Position as at the year ended December 31, 2020 (25 marks) h. Prepare a Statement of Cashflow for the ended December 31, 2020. (20 marks) John Phelps has run a small business for many years and has never kept adequate accounting records. However, a need to obtain a loan from the Bank of Make It Flow, for the expansion of his business has necessitated the preparation of final accounts. As such, he has contracted a medium size accounting firm. WAD & Associates to assist him in preparing a full set of accounting records. You were recently employed to WAD & Associates and have been assigned the task to prepare the final accounts for John Phelps. You were able to ascertain the following information for the year ended December 31, 2020: 1. John Phelps bank transactions for the year January 1 through December 31. 2020 were as follows: Receipts Trade receivables Debit card S Bank Account Payments 430,100 Trade payables 40,000 Electricity 470,100 Rates and rent Loan principal Drawings Computer equipment Overdraft intered Salaries & wages Accounting fee S 272,500 4,500 23,600 25,000 1,250 150,000 750 26,000 7,500 511,100 2. The bank account had a favourable balance on December 31, 2020 of 547.900 before considering Note 3(e) and Note 6 below. 3. During the year a. Discounts allowed by trade payables amounted to $1,350 and allowed to trade receivables amounted $1,840. b. The financial year goods returned by trade receivables amounted to $1,600 and goods returned to trade payables amounted to 56,900 e. The financial year a trade debt of $1.200 owed by Lettie Graham was off-set against the $2.000 owing to the same Lottie Graham a trade creditor. d. A customer, Janet Hutton bought poods using a debit card. She returned goods amounting to $700 and was repaid from the Debit Card takings before applying the commission (see note in 7) goods amounting to $700 and was repaid from the Debit Card takings before applying the commission (see note No. 7) e. John Phelps puts a further $135,000 into the bank account of the business to shore up working capital. This is not yet reflected in the bank balance. 4. The closing trade receivables include $750 in respect of a bad debt that should be written off. 5. The computer equipment was purchased on April 9, 2020 Depreciation should be calculated on the computer equipment on the straight line basis at a rate of 20% per annum on cost. It is the policy of the business to charge a full month's depreciation in the month of acquisition or disposal 6. On April 1, 2020 John Phelps received a loan of $75,000 from his mother. Interest should be charged on the reducing balance at a rate of 10% per annum The first interest payment is to be made on March 31, 2021. The principalis being paid in equal instalments of $25,000 commencing on September 30, 2020, September 30, 2021 and September 30, 2002. Interest on loan was outstanding at December 31, 2020. 7. For some of the sales debit cards are accepted. John Phelps pays 2.5% debit card commission on gross debit card sales. 8. The balances at the end of each year are as follows: Inventory Trade receivables Prepaid rent Fixtures (net) Trade payables Debit card receivables Required: December 31, 2019 December 31, 2020 S S 41,000 29,300 500 20,000 19,500 1,325 a. Prepare the Statement of Affairs as at January 1, 2020 b. Prepare the Trade Receivables Control Account c. Prepare the Trade Payables Control Accounts 48,500 35,750 600 19,000 19,000 750 (10 marks) (3.5 marks) (7 marks) a. Prepare the Statement of Affairs as at January 1, 2020 b. Prepare the Trade Receivables Control Account c. Prepare the Trade Payables Control Accounts. d. Prepare the Debit Card Receivables Account (10 marks) (3.5 marks) (7 marks) (2.5 marks) e. Prepare the Income Statement for the year ended December 31, 2020 (25 marks) f. Prepare the Statement of changes in owner's equity for the year ended December 31, 2020 (7 marks) g. Prepare comparatively the Statement of Financial Position as at the year ended December 31, 2020 (25 marks) h. Prepare a Statement of Cashflow for the ended December 31, 2020. (20 marks) John Phelps has run a small business for many years and has never kept adequate accounting records. However, a need to obtain a loan from the Bank of Make It Flow, for the expansion of his business has necessitated the preparation of final accounts. As such, he has contracted a medium size accounting firm. WAD & Associates to assist him in preparing a full set of accounting records. You were recently employed to WAD & Associates and have been assigned the task to prepare the final accounts for John Phelps. You were able to ascertain the following information for the year ended December 31, 2020: 1. John Phelps bank transactions for the year January 1 through December 31. 2020 were as follows: Receipts Trade receivables Debit card S Bank Account Payments 430,100 Trade payables 40,000 Electricity 470,100 Rates and rent Loan principal Drawings Computer equipment Overdraft intered Salaries & wages Accounting fee S 272,500 4,500 23,600 25,000 1,250 150,000 750 26,000 7,500 511,100 2. The bank account had a favourable balance on December 31, 2020 of 547.900 before considering Note 3(e) and Note 6 below. 3. During the year a. Discounts allowed by trade payables amounted to $1,350 and allowed to trade receivables amounted $1,840. b. The financial year goods returned by trade receivables amounted to $1,600 and goods returned to trade payables amounted to 56,900 e. The financial year a trade debt of $1.200 owed by Lettie Graham was off-set against the $2.000 owing to the same Lottie Graham a trade creditor. d. A customer, Janet Hutton bought poods using a debit card. She returned goods amounting to $700 and was repaid from the Debit Card takings before applying the commission (see note in 7) goods amounting to $700 and was repaid from the Debit Card takings before applying the commission (see note No. 7) e. John Phelps puts a further $135,000 into the bank account of the business to shore up working capital. This is not yet reflected in the bank balance. 4. The closing trade receivables include $750 in respect of a bad debt that should be written off. 5. The computer equipment was purchased on April 9, 2020 Depreciation should be calculated on the computer equipment on the straight line basis at a rate of 20% per annum on cost. It is the policy of the business to charge a full month's depreciation in the month of acquisition or disposal 6. On April 1, 2020 John Phelps received a loan of $75,000 from his mother. Interest should be charged on the reducing balance at a rate of 10% per annum The first interest payment is to be made on March 31, 2021. The principalis being paid in equal instalments of $25,000 commencing on September 30, 2020, September 30, 2021 and September 30, 2002. Interest on loan was outstanding at December 31, 2020. 7. For some of the sales debit cards are accepted. John Phelps pays 2.5% debit card commission on gross debit card sales. 8. The balances at the end of each year are as follows: Inventory Trade receivables Prepaid rent Fixtures (net) Trade payables Debit card receivables Required: December 31, 2019 December 31, 2020 S S 41,000 29,300 500 20,000 19,500 1,325 a. Prepare the Statement of Affairs as at January 1, 2020 b. Prepare the Trade Receivables Control Account c. Prepare the Trade Payables Control Accounts 48,500 35,750 600 19,000 19,000 750 (10 marks) (3.5 marks) (7 marks) a. Prepare the Statement of Affairs as at January 1, 2020 b. Prepare the Trade Receivables Control Account c. Prepare the Trade Payables Control Accounts. d. Prepare the Debit Card Receivables Account (10 marks) (3.5 marks) (7 marks) (2.5 marks) e. Prepare the Income Statement for the year ended December 31, 2020 (25 marks) f. Prepare the Statement of changes in owner's equity for the year ended December 31, 2020 (7 marks) g. Prepare comparatively the Statement of Financial Position as at the year ended December 31, 2020 (25 marks) h. Prepare a Statement of Cashflow for the ended December 31, 2020. (20 marks) John Phelps has run a small business for many years and has never kept adequate accounting records. However, a need to obtain a loan from the Bank of Make It Flow, for the expansion of his business has necessitated the preparation of final accounts. As such, he has contracted a medium size accounting firm. WAD & Associates to assist him in preparing a full set of accounting records. You were recently employed to WAD & Associates and have been assigned the task to prepare the final accounts for John Phelps. You were able to ascertain the following information for the year ended December 31, 2020: 1. John Phelps bank transactions for the year January 1 through December 31. 2020 were as follows: Receipts Trade receivables Debit card S Bank Account Payments 430,100 Trade payables 40,000 Electricity 470,100 Rates and rent Loan principal Drawings Computer equipment Overdraft intered Salaries & wages Accounting fee S 272,500 4,500 23,600 25,000 1,250 150,000 750 26,000 7,500 511,100 2. The bank account had a favourable balance on December 31, 2020 of 547.900 before considering Note 3(e) and Note 6 below. 3. During the year a. Discounts allowed by trade payables amounted to $1,350 and allowed to trade receivables amounted $1,840. b. The financial year goods returned by trade receivables amounted to $1,600 and goods returned to trade payables amounted to 56,900 e. The financial year a trade debt of $1.200 owed by Lettie Graham was off-set against the $2.000 owing to the same Lottie Graham a trade creditor. d. A customer, Janet Hutton bought poods using a debit card. She returned goods amounting to $700 and was repaid from the Debit Card takings before applying the commission (see note in 7) goods amounting to $700 and was repaid from the Debit Card takings before applying the commission (see note No. 7) e. John Phelps puts a further $135,000 into the bank account of the business to shore up working capital. This is not yet reflected in the bank balance. 4. The closing trade receivables include $750 in respect of a bad debt that should be written off. 5. The computer equipment was purchased on April 9, 2020 Depreciation should be calculated on the computer equipment on the straight line basis at a rate of 20% per annum on cost. It is the policy of the business to charge a full month's depreciation in the month of acquisition or disposal 6. On April 1, 2020 John Phelps received a loan of $75,000 from his mother. Interest should be charged on the reducing balance at a rate of 10% per annum The first interest payment is to be made on March 31, 2021. The principalis being paid in equal instalments of $25,000 commencing on September 30, 2020, September 30, 2021 and September 30, 2002. Interest on loan was outstanding at December 31, 2020. 7. For some of the sales debit cards are accepted. John Phelps pays 2.5% debit card commission on gross debit card sales. 8. The balances at the end of each year are as follows: Inventory Trade receivables Prepaid rent Fixtures (net) Trade payables Debit card receivables Required: December 31, 2019 December 31, 2020 S S 41,000 29,300 500 20,000 19,500 1,325 a. Prepare the Statement of Affairs as at January 1, 2020 b. Prepare the Trade Receivables Control Account c. Prepare the Trade Payables Control Accounts 48,500 35,750 600 19,000 19,000 750 (10 marks) (3.5 marks) (7 marks) a. Prepare the Statement of Affairs as at January 1, 2020 b. Prepare the Trade Receivables Control Account c. Prepare the Trade Payables Control Accounts. d. Prepare the Debit Card Receivables Account (10 marks) (3.5 marks) (7 marks) (2.5 marks) e. Prepare the Income Statement for the year ended December 31, 2020 (25 marks) f. Prepare the Statement of changes in owner's equity for the year ended December 31, 2020 (7 marks) g. Prepare comparatively the Statement of Financial Position as at the year ended December 31, 2020 (25 marks) h. Prepare a Statement of Cashflow for the ended December 31, 2020. (20 marks) John Phelps has run a small business for many years and has never kept adequate accounting records. However, a need to obtain a loan from the Bank of Make It Flow, for the expansion of his business has necessitated the preparation of final accounts. As such, he has contracted a medium size accounting firm. WAD & Associates to assist him in preparing a full set of accounting records. You were recently employed to WAD & Associates and have been assigned the task to prepare the final accounts for John Phelps. You were able to ascertain the following information for the year ended December 31, 2020: 1. John Phelps bank transactions for the year January 1 through December 31. 2020 were as follows: Receipts Trade receivables Debit card S Bank Account Payments 430,100 Trade payables 40,000 Electricity 470,100 Rates and rent Loan principal Drawings Computer equipment Overdraft intered Salaries & wages Accounting fee S 272,500 4,500 23,600 25,000 1,250 150,000 750 26,000 7,500 511,100 2. The bank account had a favourable balance on December 31, 2020 of 547.900 before considering Note 3(e) and Note 6 below. 3. During the year a. Discounts allowed by trade payables amounted to $1,350 and allowed to trade receivables amounted $1,840. b. The financial year goods returned by trade receivables amounted to $1,600 and goods returned to trade payables amounted to 56,900 e. The financial year a trade debt of $1.200 owed by Lettie Graham was off-set against the $2.000 owing to the same Lottie Graham a trade creditor. d. A customer, Janet Hutton bought poods using a debit card. She returned goods amounting to $700 and was repaid from the Debit Card takings before applying the commission (see note in 7) goods amounting to $700 and was repaid from the Debit Card takings before applying the commission (see note No. 7) e. John Phelps puts a further $135,000 into the bank account of the business to shore up working capital. This is not yet reflected in the bank balance. 4. The closing trade receivables include $750 in respect of a bad debt that should be written off. 5. The computer equipment was purchased on April 9, 2020 Depreciation should be calculated on the computer equipment on the straight line basis at a rate of 20% per annum on cost. It is the policy of the business to charge a full month's depreciation in the month of acquisition or disposal 6. On April 1, 2020 John Phelps received a loan of $75,000 from his mother. Interest should be charged on the reducing balance at a rate of 10% per annum The first interest payment is to be made on March 31, 2021. The principalis being paid in equal instalments of $25,000 commencing on September 30, 2020, September 30, 2021 and September 30, 2002. Interest on loan was outstanding at December 31, 2020. 7. For some of the sales debit cards are accepted. John Phelps pays 2.5% debit card commission on gross debit card sales. 8. The balances at the end of each year are as follows: Inventory Trade receivables Prepaid rent Fixtures (net) Trade payables Debit card receivables Required: December 31, 2019 December 31, 2020 S S 41,000 29,300 500 20,000 19,500 1,325 a. Prepare the Statement of Affairs as at January 1, 2020 b. Prepare the Trade Receivables Control Account c. Prepare the Trade Payables Control Accounts 48,500 35,750 600 19,000 19,000 750 (10 marks) (3.5 marks) (7 marks) a. Prepare the Statement of Affairs as at January 1, 2020 b. Prepare the Trade Receivables Control Account c. Prepare the Trade Payables Control Accounts. d. Prepare the Debit Card Receivables Account (10 marks) (3.5 marks) (7 marks) (2.5 marks) e. Prepare the Income Statement for the year ended December 31, 2020 (25 marks) f. Prepare the Statement of changes in owner's equity for the year ended December 31, 2020 (7 marks) g. Prepare comparatively the Statement of Financial Position as at the year ended December 31, 2020 (25 marks) h. Prepare a Statement of Cashflow for the ended December 31, 2020. (20 marks) John Phelps has run a small business for many years and has never kept adequate accounting records. However, a need to obtain a loan from the Bank of Make It Flow, for the expansion of his business has necessitated the preparation of final accounts. As such, he has contracted a medium size accounting firm. WAD & Associates to assist him in preparing a full set of accounting records. You were recently employed to WAD & Associates and have been assigned the task to prepare the final accounts for John Phelps. You were able to ascertain the following information for the year ended December 31, 2020: 1. John Phelps bank transactions for the year January 1 through December 31. 2020 were as follows: Receipts Trade receivables Debit card S Bank Account Payments 430,100 Trade payables 40,000 Electricity 470,100 Rates and rent Loan principal Drawings Computer equipment Overdraft intered Salaries & wages Accounting fee S 272,500 4,500 23,600 25,000 1,250 150,000 750 26,000 7,500 511,100 2. The bank account had a favourable balance on December 31, 2020 of 547.900 before considering Note 3(e) and Note 6 below. 3. During the year a. Discounts allowed by trade payables amounted to $1,350 and allowed to trade receivables amounted $1,840. b. The financial year goods returned by trade receivables amounted to $1,600 and goods returned to trade payables amounted to 56,900 e. The financial year a trade debt of $1.200 owed by Lettie Graham was off-set against the $2.000 owing to the same Lottie Graham a trade creditor. d. A customer, Janet Hutton bought poods using a debit card. She returned goods amounting to $700 and was repaid from the Debit Card takings before applying the commission (see note in 7) goods amounting to $700 and was repaid from the Debit Card takings before applying the commission (see note No. 7) e. John Phelps puts a further $135,000 into the bank account of the business to shore up working capital. This is not yet reflected in the bank balance. 4. The closing trade receivables include $750 in respect of a bad debt that should be written off. 5. The computer equipment was purchased on April 9, 2020 Depreciation should be calculated on the computer equipment on the straight line basis at a rate of 20% per annum on cost. It is the policy of the business to charge a full month's depreciation in the month of acquisition or disposal 6. On April 1, 2020 John Phelps received a loan of $75,000 from his mother. Interest should be charged on the reducing balance at a rate of 10% per annum The first interest payment is to be made on March 31, 2021. The principalis being paid in equal instalments of $25,000 commencing on September 30, 2020, September 30, 2021 and September 30, 2002. Interest on loan was outstanding at December 31, 2020. 7. For some of the sales debit cards are accepted. John Phelps pays 2.5% debit card commission on gross debit card sales. 8. The balances at the end of each year are as follows: Inventory Trade receivables Prepaid rent Fixtures (net) Trade payables Debit card receivables Required: December 31, 2019 December 31, 2020 S S 41,000 29,300 500 20,000 19,500 1,325 a. Prepare the Statement of Affairs as at January 1, 2020 b. Prepare the Trade Receivables Control Account c. Prepare the Trade Payables Control Accounts 48,500 35,750 600 19,000 19,000 750 (10 marks) (3.5 marks) (7 marks) a. Prepare the Statement of Affairs as at January 1, 2020 b. Prepare the Trade Receivables Control Account c. Prepare the Trade Payables Control Accounts. d. Prepare the Debit Card Receivables Account (10 marks) (3.5 marks) (7 marks) (2.5 marks) e. Prepare the Income Statement for the year ended December 31, 2020 (25 marks) f. Prepare the Statement of changes in owner's equity for the year ended December 31, 2020 (7 marks) g. Prepare comparatively the Statement of Financial Position as at the year ended December 31, 2020 (25 marks) h. Prepare a Statement of Cashflow for the ended December 31, 2020. (20 marks) John Phelps has run a small business for many years and has never kept adequate accounting records. However, a need to obtain a loan from the Bank of Make It Flow, for the expansion of his business has necessitated the preparation of final accounts. As such, he has contracted a medium size accounting firm. WAD & Associates to assist him in preparing a full set of accounting records. You were recently employed to WAD & Associates and have been assigned the task to prepare the final accounts for John Phelps. You were able to ascertain the following information for the year ended December 31, 2020: 1. John Phelps bank transactions for the year January 1 through December 31. 2020 were as follows: Receipts Trade receivables Debit card S Bank Account Payments 430,100 Trade payables 40,000 Electricity 470,100 Rates and rent Loan principal Drawings Computer equipment Overdraft intered Salaries & wages Accounting fee S 272,500 4,500 23,600 25,000 1,250 150,000 750 26,000 7,500 511,100 2. The bank account had a favourable balance on December 31, 2020 of 547.900 before considering Note 3(e) and Note 6 below. 3. During the year a. Discounts allowed by trade payables amounted to $1,350 and allowed to trade receivables amounted $1,840. b. The financial year goods returned by trade receivables amounted to $1,600 and goods returned to trade payables amounted to 56,900 e. The financial year a trade debt of $1.200 owed by Lettie Graham was off-set against the $2.000 owing to the same Lottie Graham a trade creditor. d. A customer, Janet Hutton bought poods using a debit card. She returned goods amounting to $700 and was repaid from the Debit Card takings before applying the commission (see note in 7) goods amounting to $700 and was repaid from the Debit Card takings before applying the commission (see note No. 7) e. John Phelps puts a further $135,000 into the bank account of the business to shore up working capital. This is not yet reflected in the bank balance. 4. The closing trade receivables include $750 in respect of a bad debt that should be written off. 5. The computer equipment was purchased on April 9, 2020 Depreciation should be calculated on the computer equipment on the straight line basis at a rate of 20% per annum on cost. It is the policy of the business to charge a full month's depreciation in the month of acquisition or disposal 6. On April 1, 2020 John Phelps received a loan of $75,000 from his mother. Interest should be charged on the reducing balance at a rate of 10% per annum The first interest payment is to be made on March 31, 2021. The principalis being paid in equal instalments of $25,000 commencing on September 30, 2020, September 30, 2021 and September 30, 2002. Interest on loan was outstanding at December 31, 2020. 7. For some of the sales debit cards are accepted. John Phelps pays 2.5% debit card commission on gross debit card sales. 8. The balances at the end of each year are as follows: Inventory Trade receivables Prepaid rent Fixtures (net) Trade payables Debit card receivables Required: December 31, 2019 December 31, 2020 S S 41,000 29,300 500 20,000 19,500 1,325 a. Prepare the Statement of Affairs as at January 1, 2020 b. Prepare the Trade Receivables Control Account c. Prepare the Trade Payables Control Accounts 48,500 35,750 600 19,000 19,000 750 (10 marks) (3.5 marks) (7 marks) a. Prepare the Statement of Affairs as at January 1, 2020 b. Prepare the Trade Receivables Control Account c. Prepare the Trade Payables Control Accounts. d. Prepare the Debit Card Receivables Account (10 marks) (3.5 marks) (7 marks) (2.5 marks) e. Prepare the Income Statement for the year ended December 31, 2020 (25 marks) f. Prepare the Statement of changes in owner's equity for the year ended December 31, 2020 (7 marks) g. Prepare comparatively the Statement of Financial Position as at the year ended December 31, 2020 (25 marks) h. Prepare a Statement of Cashflow for the ended December 31, 2020. (20 marks) John Phelps has run a small business for many years and has never kept adequate accounting records. However, a need to obtain a loan from the Bank of Make It Flow, for the expansion of his business has necessitated the preparation of final accounts. As such, he has contracted a medium size accounting firm. WAD & Associates to assist him in preparing a full set of accounting records. You were recently employed to WAD & Associates and have been assigned the task to prepare the final accounts for John Phelps. You were able to ascertain the following information for the year ended December 31, 2020: 1. John Phelps bank transactions for the year January 1 through December 31. 2020 were as follows: Receipts Trade receivables Debit card S Bank Account Payments 430,100 Trade payables 40,000 Electricity 470,100 Rates and rent Loan principal Drawings Computer equipment Overdraft intered Salaries & wages Accounting fee S 272,500 4,500 23,600 25,000 1,250 150,000 750 26,000 7,500 511,100 2. The bank account had a favourable balance on December 31, 2020 of 547.900 before considering Note 3(e) and Note 6 below. 3. During the year a. Discounts allowed by trade payables amounted to $1,350 and allowed to trade receivables amounted $1,840. b. The financial year goods returned by trade receivables amounted to $1,600 and goods returned to trade payables amounted to 56,900 e. The financial year a trade debt of $1.200 owed by Lettie Graham was off-set against the $2.000 owing to the same Lottie Graham a trade creditor. d. A customer, Janet Hutton bought poods using a debit card. She returned goods amounting to $700 and was repaid from the Debit Card takings before applying the commission (see note in 7) goods amounting to $700 and was repaid from the Debit Card takings before applying the commission (see note No. 7) e. John Phelps puts a further $135,000 into the bank account of the business to shore up working capital. This is not yet reflected in the bank balance. 4. The closing trade receivables include $750 in respect of a bad debt that should be written off. 5. The computer equipment was purchased on April 9, 2020 Depreciation should be calculated on the computer equipment on the straight line basis at a rate of 20% per annum on cost. It is the policy of the business to charge a full month's depreciation in the month of acquisition or disposal 6. On April 1, 2020 John Phelps received a loan of $75,000 from his mother. Interest should be charged on the reducing balance at a rate of 10% per annum The first interest payment is to be made on March 31, 2021. The principalis being paid in equal instalments of $25,000 commencing on September 30, 2020, September 30, 2021 and September 30, 2002. Interest on loan was outstanding at December 31, 2020. 7. For some of the sales debit cards are accepted. John Phelps pays 2.5% debit card commission on gross debit card sales. 8. The balances at the end of each year are as follows: Inventory Trade receivables Prepaid rent Fixtures (net) Trade payables Debit card receivables Required: December 31, 2019 December 31, 2020 S S 41,000 29,300 500 20,000 19,500 1,325 a. Prepare the Statement of Affairs as at January 1, 2020 b. Prepare the Trade Receivables Control Account c. Prepare the Trade Payables Control Accounts 48,500 35,750 600 19,000 19,000 750 (10 marks) (3.5 marks) (7 marks) a. Prepare the Statement of Affairs as at January 1, 2020 b. Prepare the Trade Receivables Control Account c. Prepare the Trade Payables Control Accounts. d. Prepare the Debit Card Receivables Account (10 marks) (3.5 marks) (7 marks) (2.5 marks) e. Prepare the Income Statement for the year ended December 31, 2020 (25 marks) f. Prepare the Statement of changes in owner's equity for the year ended December 31, 2020 (7 marks) g. Prepare comparatively the Statement of Financial Position as at the year ended December 31, 2020 (25 marks) h. Prepare a Statement of Cashflow for the ended December 31, 2020. (20 marks) John Phelps has run a small business for many years and has never kept adequate accounting records. However, a need to obtain a loan from the Bank of Make It Flow, for the expansion of his business has necessitated the preparation of final accounts. As such, he has contracted a medium size accounting firm. WAD & Associates to assist him in preparing a full set of accounting records. You were recently employed to WAD & Associates and have been assigned the task to prepare the final accounts for John Phelps. You were able to ascertain the following information for the year ended December 31, 2020: 1. John Phelps bank transactions for the year January 1 through December 31. 2020 were as follows: Receipts Trade receivables Debit card S Bank Account Payments 430,100 Trade payables 40,000 Electricity 470,100 Rates and rent Loan principal Drawings Computer equipment Overdraft intered Salaries & wages Accounting fee S 272,500 4,500 23,600 25,000 1,250 150,000 750 26,000 7,500 511,100 2. The bank account had a favourable balance on December 31, 2020 of 547.900 before considering Note 3(e) and Note 6 below. 3. During the year a. Discounts allowed by trade payables amounted to $1,350 and allowed to trade receivables amounted $1,840. b. The financial year goods returned by trade receivables amounted to $1,600 and goods returned to trade payables amounted to 56,900 e. The financial year a trade debt of $1.200 owed by Lettie Graham was off-set against the $2.000 owing to the same Lottie Graham a trade creditor. d. A customer, Janet Hutton bought poods using a debit card. She returned goods amounting to $700 and was repaid from the Debit Card takings before applying the commission (see note in 7) goods amounting to $700 and was repaid from the Debit Card takings before applying the commission (see note No. 7) e. John Phelps puts a further $135,000 into the bank account of the business to shore up working capital. This is not yet reflected in the bank balance. 4. The closing trade receivables include $750 in respect of a bad debt that should be written off. 5. The computer equipment was purchased on April 9, 2020 Depreciation should be calculated on the computer equipment on the straight line basis at a rate of 20% per annum on cost. It is the policy of the business to charge a full month's depreciation in the month of acquisition or disposal 6. On April 1, 2020 John Phelps received a loan of $75,000 from his mother. Interest should be charged on the reducing balance at a rate of 10% per annum The first interest payment is to be made on March 31, 2021. The principalis being paid in equal instalments of $25,000 commencing on September 30, 2020, September 30, 2021 and September 30, 2002. Interest on loan was outstanding at December 31, 2020. 7. For some of the sales debit cards are accepted. John Phelps pays 2.5% debit card commission on gross debit card sales. 8. The balances at the end of each year are as follows: Inventory Trade receivables Prepaid rent Fixtures (net) Trade payables Debit card receivables Required: December 31, 2019 December 31, 2020 S S 41,000 29,300 500 20,000 19,500 1,325 a. Prepare the Statement of Affairs as at January 1, 2020 b. Prepare the Trade Receivables Control Account c. Prepare the Trade Payables Control Accounts 48,500 35,750 600 19,000 19,000 750 (10 marks) (3.5 marks) (7 marks) a. Prepare the Statement of Affairs as at January 1, 2020 b. Prepare the Trade Receivables Control Account c. Prepare the Trade Payables Control Accounts. d. Prepare the Debit Card Receivables Account (10 marks) (3.5 marks) (7 marks) (2.5 marks) e. Prepare the Income Statement for the year ended December 31, 2020 (25 marks) f. Prepare the Statement of changes in owner's equity for the year ended December 31, 2020 (7 marks) g. Prepare comparatively the Statement of Financial Position as at the year ended December 31, 2020 (25 marks) h. Prepare a Statement of Cashflow for the ended December 31, 2020. (20 marks) John Phelps has run a small business for many years and has never kept adequate accounting records. However, a need to obtain a loan from the Bank of Make It Flow, for the expansion of his business has necessitated the preparation of final accounts. As such, he has contracted a medium size accounting firm. WAD & Associates to assist him in preparing a full set of accounting records. You were recently employed to WAD & Associates and have been assigned the task to prepare the final accounts for John Phelps. You were able to ascertain the following information for the year ended December 31, 2020: 1. John Phelps bank transactions for the year January 1 through December 31. 2020 were as follows: Receipts Trade receivables Debit card S Bank Account Payments 430,100 Trade payables 40,000 Electricity 470,100 Rates and rent Loan principal Drawings Computer equipment Overdraft intered Salaries & wages Accounting fee S 272,500 4,500 23,600 25,000 1,250 150,000 750 26,000 7,500 511,100 2. The bank account had a favourable balance on December 31, 2020 of 547.900 before considering Note 3(e) and Note 6 below. 3. During the year a. Discounts allowed by trade payables amounted to $1,350 and allowed to trade receivables amounted $1,840. b. The financial year goods returned by trade receivables amounted to $1,600 and goods returned to trade payables amounted to 56,900 e. The financial year a trade debt of $1.200 owed by Lettie Graham was off-set against the $2.000 owing to the same Lottie Graham a trade creditor. d. A customer, Janet Hutton bought poods using a debit card. She returned goods amounting to $700 and was repaid from the Debit Card takings before applying the commission (see note in 7) goods amounting to $700 and was repaid from the Debit Card takings before applying the commission (see note No. 7) e. John Phelps puts a further $135,000 into the bank account of the business to shore up working capital. This is not yet reflected in the bank balance. 4. The closing trade receivables include $750 in respect of a bad debt that should be written off. 5. The computer equipment was purchased on April 9, 2020 Depreciation should be calculated on the computer equipment on the straight line basis at a rate of 20% per annum on cost. It is the policy of the business to charge a full month's depreciation in the month of acquisition or disposal 6. On April 1, 2020 John Phelps received a loan of $75,000 from his mother. Interest should be charged on the reducing balance at a rate of 10% per annum The first interest payment is to be made on March 31, 2021. The principalis being paid in equal instalments of $25,000 commencing on September 30, 2020, September 30, 2021 and September 30, 2002. Interest on loan was outstanding at December 31, 2020. 7. For some of the sales debit cards are accepted. John Phelps pays 2.5% debit card commission on gross debit card sales. 8. The balances at the end of each year are as follows: Inventory Trade receivables Prepaid rent Fixtures (net) Trade payables Debit card receivables Required: December 31, 2019 December 31, 2020 S S 41,000 29,300 500 20,000 19,500 1,325 a. Prepare the Statement of Affairs as at January 1, 2020 b. Prepare the Trade Receivables Control Account c. Prepare the Trade Payables Control Accounts 48,500 35,750 600 19,000 19,000 750 (10 marks) (3.5 marks) (7 marks) a. Prepare the Statement of Affairs as at January 1, 2020 b. Prepare the Trade Receivables Control Account c. Prepare the Trade Payables Control Accounts. d. Prepare the Debit Card Receivables Account (10 marks) (3.5 marks) (7 marks) (2.5 marks) e. Prepare the Income Statement for the year ended December 31, 2020 (25 marks) f. Prepare the Statement of changes in owner's equity for the year ended December 31, 2020 (7 marks) g. Prepare comparatively the Statement of Financial Position as at the year ended December 31, 2020 (25 marks) h. Prepare a Statement of Cashflow for the ended December 31, 2020. (20 marks) John Phelps has run a small business for many years and has never kept adequate accounting records. However, a need to obtain a loan from the Bank of Make It Flow, for the expansion of his business has necessitated the preparation of final accounts. As such, he has contracted a medium size accounting firm. WAD & Associates to assist him in preparing a full set of accounting records. You were recently employed to WAD & Associates and have been assigned the task to prepare the final accounts for John Phelps. You were able to ascertain the following information for the year ended December 31, 2020: 1. John Phelps bank transactions for the year January 1 through December 31. 2020 were as follows: Receipts Trade receivables Debit card S Bank Account Payments 430,100 Trade payables 40,000 Electricity 470,100 Rates and rent Loan principal Drawings Computer equipment Overdraft intered Salaries & wages Accounting fee S 272,500 4,500 23,600 25,000 1,250 150,000 750 26,000 7,500 511,100 2. The bank account had a favourable balance on December 31, 2020 of 547.900 before considering Note 3(e) and Note 6 below. 3. During the year a. Discounts allowed by trade payables amounted to $1,350 and allowed to trade receivables amounted $1,840. b. The financial year goods returned by trade receivables amounted to $1,600 and goods returned to trade payables amounted to 56,900 e. The financial year a trade debt of $1.200 owed by Lettie Graham was off-set against the $2.000 owing to the same Lottie Graham a trade creditor. d. A customer, Janet Hutton bought poods using a debit card. She returned goods amounting to $700 and was repaid from the Debit Card takings before applying the commission (see note in 7) goods amounting to $700 and was repaid from the Debit Card takings before applying the commission (see note No. 7) e. John Phelps puts a further $135,000 into the bank account of the business to shore up working capital. This is not yet reflected in the bank balance. 4. The closing trade receivables include $750 in respect of a bad debt that should be written off. 5. The computer equipment was purchased on April 9, 2020 Depreciation should be calculated on the computer equipment on the straight line basis at a rate of 20% per annum on cost. It is the policy of the business to charge a full month's depreciation in the month of acquisition or disposal 6. On April 1, 2020 John Phelps received a loan of $75,000 from his mother. Interest should be charged on the reducing balance at a rate of 10% per annum The first interest payment is to be made on March 31, 2021. The principalis being paid in equal instalments of $25,000 commencing on September 30, 2020, September 30, 2021 and September 30, 2002. Interest on loan was outstanding at December 31, 2020. 7. For some of the sales debit cards are accepted. John Phelps pays 2.5% debit card commission on gross debit card sales. 8. The balances at the end of each year are as follows: Inventory Trade receivables Prepaid rent Fixtures (net) Trade payables Debit card receivables Required: December 31, 2019 December 31, 2020 S S 41,000 29,300 500 20,000 19,500 1,325 a. Prepare the Statement of Affairs as at January 1, 2020 b. Prepare the Trade Receivables Control Account c. Prepare the Trade Payables Control Accounts 48,500 35,750 600 19,000 19,000 750 (10 marks) (3.5 marks) (7 marks) a. Prepare the Statement of Affairs as at January 1, 2020 b. Prepare the Trade Receivables Control Account c. Prepare the Trade Payables Control Accounts. d. Prepare the Debit Card Receivables Account (10 marks) (3.5 marks) (7 marks) (2.5 marks) e. Prepare the Income Statement for the year ended December 31, 2020 (25 marks) f. Prepare the Statement of changes in owner's equity for the year ended December 31, 2020 (7 marks) g. Prepare comparatively the Statement of Financial Position as at the year ended December 31, 2020 (25 marks) h. Prepare a Statement of Cashflow for the ended December 31, 2020. (20 marks) John Phelps has run a small business for many years and has never kept adequate accounting records. However, a need to obtain a loan from the Bank of Make It Flow, for the expansion of his business has necessitated the preparation of final accounts. As such, he has contracted a medium size accounting firm. WAD & Associates to assist him in preparing a full set of accounting records. You were recently employed to WAD & Associates and have been assigned the task to prepare the final accounts for John Phelps. You were able to ascertain the following information for the year ended December 31, 2020: 1. John Phelps bank transactions for the year January 1 through December 31. 2020 were as follows: Receipts Trade receivables Debit card S Bank Account Payments 430,100 Trade payables 40,000 Electricity 470,100 Rates and rent Loan principal Drawings Computer equipment Overdraft intered Salaries & wages Accounting fee S 272,500 4,500 23,600 25,000 1,250 150,000 750 26,000 7,500 511,100 2. The bank account had a favourable balance on December 31, 2020 of 547.900 before considering Note 3(e) and Note 6 below. 3. During the year a. Discounts allowed by trade payables amounted to $1,350 and allowed to trade receivables amounted $1,840. b. The financial year goods returned by trade receivables amounted to $1,600 and goods returned to trade payables amounted to 56,900 e. The financial year a trade debt of $1.200 owed by Lettie Graham was off-set against the $2.000 owing to the same Lottie Graham a trade creditor. d. A customer, Janet Hutton bought poods using a debit card. She returned goods amounting to $700 and was repaid from the Debit Card takings before applying the commission (see note in 7) goods amounting to $700 and was repaid from the Debit Card takings before applying the commission (see note No. 7) e. John Phelps puts a further $135,000 into the bank account of the business to shore up working capital. This is not yet reflected in the bank balance. 4. The closing trade receivables include $750 in respect of a bad debt that should be written off. 5. The computer equipment was purchased on April 9, 2020 Depreciation should be calculated on the computer equipment on the straight line basis at a rate of 20% per annum on cost. It is the policy of the business to charge a full month's depreciation in the month of acquisition or disposal 6. On April 1, 2020 John Phelps received a loan of $75,000 from his mother. Interest should be charged on the reducing balance at a rate of 10% per annum The first interest payment is to be made on March 31, 2021. The principalis being paid in equal instalments of $25,000 commencing on September 30, 2020, September 30, 2021 and September 30, 2002. Interest on loan was outstanding at December 31, 2020. 7. For some of the sales debit cards are accepted. John Phelps pays 2.5% debit card commission on gross debit card sales. 8. The balances at the end of each year are as follows: Inventory Trade receivables Prepaid rent Fixtures (net) Trade payables Debit card receivables Required: December 31, 2019 December 31, 2020 S S 41,000 29,300 500 20,000 19,500 1,325 a. Prepare the Statement of Affairs as at January 1, 2020 b. Prepare the Trade Receivables Control Account c. Prepare the Trade Payables Control Accounts 48,500 35,750 600 19,000 19,000 750 (10 marks) (3.5 marks) (7 marks) a. Prepare the Statement of Affairs as at January 1, 2020 b. Prepare the Trade Receivables Control Account c. Prepare the Trade Payables Control Accounts. d. Prepare the Debit Card Receivables Account (10 marks) (3.5 marks) (7 marks) (2.5 marks) e. Prepare the Income Statement for the year ended December 31, 2020 (25 marks) f. Prepare the Statement of changes in owner's equity for the year ended December 31, 2020 (7 marks) g. Prepare comparatively the Statement of Financial Position as at the year ended December 31, 2020 (25 marks) h. Prepare a Statement of Cashflow for the ended December 31, 2020. (20 marks) John Phelps has run a small business for many years and has never kept adequate accounting records. However, a need to obtain a loan from the Bank of Make It Flow, for the expansion of his business has necessitated the preparation of final accounts. As such, he has contracted a medium size accounting firm. WAD & Associates to assist him in preparing a full set of accounting records. You were recently employed to WAD & Associates and have been assigned the task to prepare the final accounts for John Phelps. You were able to ascertain the following information for the year ended December 31, 2020: 1. John Phelps bank transactions for the year January 1 through December 31. 2020 were as follows: Receipts Trade receivables Debit card S Bank Account Payments 430,100 Trade payables 40,000 Electricity 470,100 Rates and rent Loan principal Drawings Computer equipment Overdraft intered Salaries & wages Accounting fee S 272,500 4,500 23,600 25,000 1,250 150,000 750 26,000 7,500 511,100 2. The bank account had a favourable balance on December 31, 2020 of 547.900 before considering Note 3(e) and Note 6 below. 3. During the year a. Discounts allowed by trade payables amounted to $1,350 and allowed to trade receivables amounted $1,840. b. The financial year goods returned by trade receivables amounted to $1,600 and goods returned to trade payables amounted to 56,900 e. The financial year a trade debt of $1.200 owed by Lettie Graham was off-set against the $2.000 owing to the same Lottie Graham a trade creditor. d. A customer, Janet Hutton bought poods using a debit card. She returned goods amounting to $700 and was repaid from the Debit Card takings before applying the commission (see note in 7) goods amounting to $700 and was repaid from the Debit Card takings before applying the commission (see note No. 7) e. John Phelps puts a further $135,000 into the bank account of the business to shore up working capital. This is not yet reflected in the bank balance. 4. The closing trade receivables include $750 in respect of a bad debt that should be written off. 5. The computer equipment was purchased on April 9, 2020 Depreciation should be calculated on the computer equipment on the straight line basis at a rate of 20% per annum on cost. It is the policy of the business to charge a full month's depreciation in the month of acquisition or disposal 6. On April 1, 2020 John Phelps received a loan of $75,000 from his mother. Interest should be charged on the reducing balance at a rate of 10% per annum The first interest payment is to be made on March 31, 2021. The principalis being paid in equal instalments of $25,000 commencing on September 30, 2020, September 30, 2021 and September 30, 2002. Interest on loan was outstanding at December 31, 2020. 7. For some of the sales debit cards are accepted. John Phelps pays 2.5% debit card commission on gross debit card sales. 8. The balances at the end of each year are as follows: Inventory Trade receivables Prepaid rent Fixtures (net) Trade payables Debit card receivables Required: December 31, 2019 December 31, 2020 S S 41,000 29,300 500 20,000 19,500 1,325 a. Prepare the Statement of Affairs as at January 1, 2020 b. Prepare the Trade Receivables Control Account c. Prepare the Trade Payables Control Accounts 48,500 35,750 600 19,000 19,000 750 (10 marks) (3.5 marks) (7 marks) a. Prepare the Statement of Affairs as at January 1, 2020 b. Prepare the Trade Receivables Control Account c. Prepare the Trade Payables Control Accounts. d. Prepare the Debit Card Receivables Account (10 marks) (3.5 marks) (7 marks) (2.5 marks) e. Prepare the Income Statement for the year ended December 31, 2020 (25 marks) f. Prepare the Statement of changes in owner's equity for the year ended December 31, 2020 (7 marks) g. Prepare comparatively the Statement of Financial Position as at the year ended December 31, 2020 (25 marks) h. Prepare a Statement of Cashflow for the ended December 31, 2020. (20 marks) John Phelps has run a small business for many years and has never kept adequate accounting records. However, a need to obtain a loan from the Bank of Make It Flow, for the expansion of his business has necessitated the preparation of final accounts. As such, he has contracted a medium size accounting firm. WAD & Associates to assist him in preparing a full set of accounting records. You were recently employed to WAD & Associates and have been assigned the task to prepare the final accounts for John Phelps. You were able to ascertain the following information for the year ended December 31, 2020: 1. John Phelps bank transactions for the year January 1 through December 31. 2020 were as follows: Receipts Trade receivables Debit card S Bank Account Payments 430,100 Trade payables 40,000 Electricity 470,100 Rates and rent Loan principal Drawings Computer equipment Overdraft intered Salaries & wages Accounting fee S 272,500 4,500 23,600 25,000 1,250 150,000 750 26,000 7,500 511,100 2. The bank account had a favourable balance on December 31, 2020 of 547.900 before considering Note 3(e) and Note 6 below. 3. During the year a. Discounts allowed by trade payables amounted to $1,350 and allowed to trade receivables amounted $1,840. b. The financial year goods returned by trade receivables amounted to $1,600 and goods returned to trade payables amounted to 56,900 e. The financial year a trade debt of $1.200 owed by Lettie Graham was off-set against the $2.000 owing to the same Lottie Graham a trade creditor. d. A customer, Janet Hutton bought poods using a debit card. She returned goods amounting to $700 and was repaid from the Debit Card takings before applying the commission (see note in 7) goods amounting to $700 and was repaid from the Debit Card takings before applying the commission (see note No. 7) e. John Phelps puts a further $135,000 into the bank account of the business to shore up working capital. This is not yet reflected in the bank balance. 4. The closing trade receivables include $750 in respect of a bad debt that should be written off. 5. The computer equipment was purchased on April 9, 2020 Depreciation should be calculated on the computer equipment on the straight line basis at a rate of 20% per annum on cost. It is the policy of the business to charge a full month's depreciation in the month of acquisition or disposal 6. On April 1, 2020 John Phelps received a loan of $75,000 from his mother. Interest should be charged on the reducing balance at a rate of 10% per annum The first interest payment is to be made on March 31, 2021. The principalis being paid in equal instalments of $25,000 commencing on September 30, 2020, September 30, 2021 and September 30, 2002. Interest on loan was outstanding at December 31, 2020. 7. For some of the sales debit cards are accepted. John Phelps pays 2.5% debit card commission on gross debit card sales. 8. The balances at the end of each year are as follows: Inventory Trade receivables Prepaid rent Fixtures (net) Trade payables Debit card receivables Required: December 31, 2019 December 31, 2020 S S 41,000 29,300 500 20,000 19,500 1,325 a. Prepare the Statement of Affairs as at January 1, 2020 b. Prepare the Trade Receivables Control Account c. Prepare the Trade Payables Control Accounts 48,500 35,750 600 19,000 19,000 750 (10 marks) (3.5 marks) (7 marks) a. Prepare the Statement of Affairs as at January 1, 2020 b. Prepare the Trade Receivables Control Account c. Prepare the Trade Payables Control Accounts. d. Prepare the Debit Card Receivables Account (10 marks) (3.5 marks) (7 marks) (2.5 marks) e. Prepare the Income Statement for the year ended December 31, 2020 (25 marks) f. Prepare the Statement of changes in owner's equity for the year ended December 31, 2020 (7 marks) g. Prepare comparatively the Statement of Financial Position as at the year ended December 31, 2020 (25 marks) h. Prepare a Statement of Cashflow for the ended December 31, 2020. (20 marks) John Phelps has run a small business for many years and has never kept adequate accounting records. However, a need to obtain a loan from the Bank of Make It Flow, for the expansion of his business has necessitated the preparation of final accounts. As such, he has contracted a medium size accounting firm. WAD & Associates to assist him in preparing a full set of accounting records. You were recently employed to WAD & Associates and have been assigned the task to prepare the final accounts for John Phelps. You were able to ascertain the following information for the year ended December 31, 2020: 1. John Phelps bank transactions for the year January 1 through December 31. 2020 were as follows: Receipts Trade receivables Debit card S Bank Account Payments 430,100 Trade payables 40,000 Electricity 470,100 Rates and rent Loan principal Drawings Computer equipment Overdraft intered Salaries & wages Accounting fee S 272,500 4,500 23,600 25,000 1,250 150,000 750 26,000 7,500 511,100 2. The bank account had a favourable balance on December 31, 2020 of 547.900 before considering Note 3(e) and Note 6 below. 3. During the year a. Discounts allowed by trade payables amounted to $1,350 and allowed to trade receivables amounted $1,840. b. The financial year goods returned by trade receivables amounted to $1,600 and goods returned to trade payables amounted to 56,900 e. The financial year a trade debt of $1.200 owed by Lettie Graham was off-set against the $2.000 owing to the same Lottie Graham a trade creditor. d. A customer, Janet Hutton bought poods using a debit card. She returned goods amounting to $700 and was repaid from the Debit Card takings before applying the commission (see note in 7) goods amounting to $700 and was repaid from the Debit Card takings before applying the commission (see note No. 7) e. John Phelps puts a further $135,000 into the bank account of the business to shore up working capital. This is not yet reflected in the bank balance. 4. The closing trade receivables include $750 in respect of a bad debt that should be written off. 5. The computer equipment was purchased on April 9, 2020 Depreciation should be calculated on the computer equipment on the straight line basis at a rate of 20% per annum on cost. It is the policy of the business to charge a full month's depreciation in the month of acquisition or disposal 6. On April 1, 2020 John Phelps received a loan of $75,000 from his mother. Interest should be charged on the reducing balance at a rate of 10% per annum The first interest payment is to be made on March 31, 2021. The principalis being paid in equal instalments of $25,000 commencing on September 30, 2020, September 30, 2021 and September 30, 2002. Interest on loan was outstanding at December 31, 2020. 7. For some of the sales debit cards are accepted. John Phelps pays 2.5% debit card commission on gross debit card sales. 8. The balances at the end of each year are as follows: Inventory Trade receivables Prepaid rent Fixtures (net) Trade payables Debit card receivables Required: December 31, 2019 December 31, 2020 S S 41,000 29,300 500 20,000 19,500 1,325 a. Prepare the Statement of Affairs as at January 1, 2020 b. Prepare the Trade Receivables Control Account c. Prepare the Trade Payables Control Accounts 48,500 35,750 600 19,000 19,000 750 (10 marks) (3.5 marks) (7 marks) a. Prepare the Statement of Affairs as at January 1, 2020 b. Prepare the Trade Receivables Control Account c. Prepare the Trade Payables Control Accounts. d. Prepare the Debit Card Receivables Account (10 marks) (3.5 marks) (7 marks) (2.5 marks) e. Prepare the Income Statement for the year ended December 31, 2020 (25 marks) f. Prepare the Statement of changes in owner's equity for the year ended December 31, 2020 (7 marks) g. Prepare comparatively the Statement of Financial Position as at the year ended December 31, 2020 (25 marks) h. Prepare a Statement of Cashflow for the ended December 31, 2020. (20 marks) John Phelps has run a small business for many years and has never kept adequate accounting records. However, a need to obtain a loan from the Bank of Make It Flow, for the expansion of his business has necessitated the preparation of final accounts. As such, he has contracted a medium size accounting firm. WAD & Associates to assist him in preparing a full set of accounting records. You were recently employed to WAD & Associates and have been assigned the task to prepare the final accounts for John Phelps. You were able to ascertain the following information for the year ended December 31, 2020: 1. John Phelps bank transactions for the year January 1 through December 31. 2020 were as follows: Receipts Trade receivables Debit card S Bank Account Payments 430,100 Trade payables 40,000 Electricity 470,100 Rates and rent Loan principal Drawings Computer equipment Overdraft intered Salaries & wages Accounting fee S 272,500 4,500 23,600 25,000 1,250 150,000 750 26,000 7,500 511,100 2. The bank account had a favourable balance on December 31, 2020 of 547.900 before considering Note 3(e) and Note 6 below. 3. During the year a. Discounts allowed by trade payables amounted to $1,350 and allowed to trade receivables amounted $1,840. b. The financial year goods returned by trade receivables amounted to $1,600 and goods returned to trade payables amounted to 56,900 e. The financial year a trade debt of $1.200 owed by Lettie Graham was off-set against the $2.000 owing to the same Lottie Graham a trade creditor. d. A customer, Janet Hutton bought poods using a debit card. She returned goods amounting to $700 and was repaid from the Debit Card takings before applying the commission (see note in 7) goods amounting to $700 and was repaid from the Debit Card takings before applying the commission (see note No. 7) e. John Phelps puts a further $135,000 into the bank account of the business to shore up working capital. This is not yet reflected in the bank balance. 4. The closing trade receivables include $750 in respect of a bad debt that should be written off. 5. The computer equipment was purchased on April 9, 2020 Depreciation should be calculated on the computer equipment on the straight line basis at a rate of 20% per annum on cost. It is the policy of the business to charge a full month's depreciation in the month of acquisition or disposal 6. On April 1, 2020 John Phelps received a loan of $75,000 from his mother. Interest should be charged on the reducing balance at a rate of 10% per annum The first interest payment is to be made on March 31, 2021. The principalis being paid in equal instalments of $25,000 commencing on September 30, 2020, September 30, 2021 and September 30, 2002. Interest on loan was outstanding at December 31, 2020. 7. For some of the sales debit cards are accepted. John Phelps pays 2.5% debit card commission on gross debit card sales. 8. The balances at the end of each year are as follows: Inventory Trade receivables Prepaid rent Fixtures (net) Trade payables Debit card receivables Required: December 31, 2019 December 31, 2020 S S 41,000 29,300 500 20,000 19,500 1,325 a. Prepare the Statement of Affairs as at January 1, 2020 b. Prepare the Trade Receivables Control Account c. Prepare the Trade Payables Control Accounts 48,500 35,750 600 19,000 19,000 750 (10 marks) (3.5 marks) (7 marks) a. Prepare the Statement of Affairs as at January 1, 2020 b. Prepare the Trade Receivables Control Account c. Prepare the Trade Payables Control Accounts. d. Prepare the Debit Card Receivables Account (10 marks) (3.5 marks) (7 marks) (2.5 marks) e. Prepare the Income Statement for the year ended December 31, 2020 (25 marks) f. Prepare the Statement of changes in owner's equity for the year ended December 31, 2020 (7 marks) g. Prepare comparatively the Statement of Financial Position as at the year ended December 31, 2020 (25 marks) h. Prepare a Statement of Cashflow for the ended December 31, 2020. (20 marks) John Phelps has run a small business for many years and has never kept adequate accounting records. However, a need to obtain a loan from the Bank of Make It Flow, for the expansion of his business has necessitated the preparation of final accounts. As such, he has contracted a medium size accounting firm. WAD & Associates to assist him in preparing a full set of accounting records. You were recently employed to WAD & Associates and have been assigned the task to prepare the final accounts for John Phelps. You were able to ascertain the following information for the year ended December 31, 2020: 1. John Phelps bank transactions for the year January 1 through December 31. 2020 were as follows: Receipts Trade receivables Debit card S Bank Account Payments 430,100 Trade payables 40,000 Electricity 470,100 Rates and rent Loan principal Drawings Computer equipment Overdraft intered Salaries & wages Accounting fee S 272,500 4,500 23,600 25,000 1,250 150,000 750 26,000 7,500 511,100 2. The bank account had a favourable balance on December 31, 2020 of 547.900 before considering Note 3(e) and Note 6 below. 3. During the year a. Discounts allowed by trade payables amounted to $1,350 and allowed to trade receivables amounted $1,840. b. The financial year goods returned by trade receivables amounted to $1,600 and goods returned to trade payables amounted to 56,900 e. The financial year a trade debt of $1.200 owed by Lettie Graham was off-set against the $2.000 owing to the same Lottie Graham a trade creditor. d. A customer, Janet Hutton bought poods using a debit card. She returned goods amounting to $700 and was repaid from the Debit Card takings before applying the commission (see note in 7) goods amounting to $700 and was repaid from the Debit Card takings before applying the commission (see note No. 7) e. John Phelps puts a further $135,000 into the bank account of the business to shore up working capital. This is not yet reflected in the bank balance. 4. The closing trade receivables include $750 in respect of a bad debt that should be written off. 5. The computer equipment was purchased on April 9, 2020 Depreciation should be calculated on the computer equipment on the straight line basis at a rate of 20% per annum on cost. It is the policy of the business to charge a full month's depreciation in the month of acquisition or disposal 6. On April 1, 2020 John Phelps received a loan of $75,000 from his mother. Interest should be charged on the reducing balance at a rate of 10% per annum The first interest payment is to be made on March 31, 2021. The principalis being paid in equal instalments of $25,000 commencing on September 30, 2020, September 30, 2021 and September 30, 2002. Interest on loan was outstanding at December 31, 2020. 7. For some of the sales debit cards are accepted. John Phelps pays 2.5% debit card commission on gross debit card sales. 8. The balances at the end of each year are as follows: Inventory Trade receivables Prepaid rent Fixtures (net) Trade payables Debit card receivables Required: December 31, 2019 December 31, 2020 S S 41,000 29,300 500 20,000 19,500 1,325 a. Prepare the Statement of Affairs as at January 1, 2020 b. Prepare the Trade Receivables Control Account c. Prepare the Trade Payables Control Accounts 48,500 35,750 600 19,000 19,000 750 (10 marks) (3.5 marks) (7 marks) a. Prepare the Statement of Affairs as at January 1, 2020 b. Prepare the Trade Receivables Control Account c. Prepare the Trade Payables Control Accounts. d. Prepare the Debit Card Receivables Account (10 marks) (3.5 marks) (7 marks) (2.5 marks) e. Prepare the Income Statement for the year ended December 31, 2020 (25 marks) f. Prepare the Statement of changes in owner's equity for the year ended December 31, 2020 (7 marks) g. Prepare comparatively the Statement of Financial Position as at the year ended December 31, 2020 (25 marks) h. Prepare a Statement of Cashflow for the ended December 31, 2020. (20 marks) John Phelps has run a small business for many years and has never kept adequate accounting records. However, a need to obtain a loan from the Bank of Make It Flow, for the expansion of his business has necessitated the preparation of final accounts. As such, he has contracted a medium size accounting firm. WAD & Associates to assist him in preparing a full set of accounting records. You were recently employed to WAD & Associates and have been assigned the task to prepare the final accounts for John Phelps. You were able to ascertain the following information for the year ended December 31, 2020: 1. John Phelps bank transactions for the year January 1 through December 31. 2020 were as follows: Receipts Trade receivables Debit card S Bank Account Payments 430,100 Trade payables 40,000 Electricity 470,100 Rates and rent Loan principal Drawings Computer equipment Overdraft intered Salaries & wages Accounting fee S 272,500 4,500 23,600 25,000 1,250 150,000 750 26,000 7,500 511,100 2. The bank account had a favourable balance on December 31, 2020 of 547.900 before considering Note 3(e) and Note 6 below. 3. During the year a. Discounts allowed by trade payables amounted to $1,350 and allowed to trade receivables amounted $1,840. b. The financial year goods returned by trade receivables amounted to $1,600 and goods returned to trade payables amounted to 56,900 e. The financial year a trade debt of $1.200 owed by Lettie Graham was off-set against the $2.000 owing to the same Lottie Graham a trade creditor. d. A customer, Janet Hutton bought poods using a debit card. She returned goods amounting to $700 and was repaid from the Debit Card takings before applying the commission (see note in 7) goods amounting to $700 and was repaid from the Debit Card takings before applying the commission (see note No. 7) e. John Phelps puts a further $135,000 into the bank account of the business to shore up working capital. This is not yet reflected in the bank balance. 4. The closing trade receivables include $750 in respect of a bad debt that should be written off. 5. The computer equipment was purchased on April 9, 2020 Depreciation should be calculated on the computer equipment on the straight line basis at a rate of 20% per annum on cost. It is the policy of the business to charge a full month's depreciation in the month of acquisition or disposal 6. On April 1, 2020 John Phelps received a loan of $75,000 from his mother. Interest should be charged on the reducing balance at a rate of 10% per annum The first interest payment is to be made on March 31, 2021. The principalis being paid in equal instalments of $25,000 commencing on September 30, 2020, September 30, 2021 and September 30, 2002. Interest on loan was outstanding at December 31, 2020. 7. For some of the sales debit cards are accepted. John Phelps pays 2.5% debit card commission on gross debit card sales. 8. The balances at the end of each year are as follows: Inventory Trade receivables Prepaid rent Fixtures (net) Trade payables Debit card receivables Required: December 31, 2019 December 31, 2020 S S 41,000 29,300 500 20,000 19,500 1,325 a. Prepare the Statement of Affairs as at January 1, 2020 b. Prepare the Trade Receivables Control Account c. Prepare the Trade Payables Control Accounts 48,500 35,750 600 19,000 19,000 750 (10 marks) (3.5 marks) (7 marks) a. Prepare the Statement of Affairs as at January 1, 2020 b. Prepare the Trade Receivables Control Account c. Prepare the Trade Payables Control Accounts. d. Prepare the Debit Card Receivables Account (10 marks) (3.5 marks) (7 marks) (2.5 marks) e. Prepare the Income Statement for the year ended December 31, 2020 (25 marks) f. Prepare the Statement of changes in owner's equity for the year ended December 31, 2020 (7 marks) g. Prepare comparatively the Statement of Financial Position as at the year ended December 31, 2020 (25 marks) h. Prepare a Statement of Cashflow for the ended December 31, 2020. (20 marks) John Phelps has run a small business for many years and has never kept adequate accounting records. However, a need to obtain a loan from the Bank of Make It Flow, for the expansion of his business has necessitated the preparation of final accounts. As such, he has contracted a medium size accounting firm. WAD & Associates to assist him in preparing a full set of accounting records. You were recently employed to WAD & Associates and have been assigned the task to prepare the final accounts for John Phelps. You were able to ascertain the following information for the year ended December 31, 2020: 1. John Phelps bank transactions for the year January 1 through December 31. 2020 were as follows: Receipts Trade receivables Debit card S Bank Account Payments 430,100 Trade payables 40,000 Electricity 470,100 Rates and rent Loan principal Drawings Computer equipment Overdraft intered Salaries & wages Accounting fee S 272,500 4,500 23,600 25,000 1,250 150,000 750 26,000 7,500 511,100 2. The bank account had a favourable balance on December 31, 2020 of 547.900 before considering Note 3(e) and Note 6 below. 3. During the year a. Discounts allowed by trade payables amounted to $1,350 and allowed to trade receivables amounted $1,840. b. The financial year goods returned by trade receivables amounted to $1,600 and goods returned to trade payables amounted to 56,900 e. The financial year a trade debt of $1.200 owed by Lettie Graham was off-set against the $2.000 owing to the same Lottie Graham a trade creditor. d. A customer, Janet Hutton bought poods using a debit card. She returned goods amounting to $700 and was repaid from the Debit Card takings before applying the commission (see note in 7) goods amounting to $700 and was repaid from the Debit Card takings before applying the commission (see note No. 7) e. John Phelps puts a further $135,000 into the bank account of the business to shore up working capital. This is not yet reflected in the bank balance. 4. The closing trade receivables include $750 in respect of a bad debt that should be written off. 5. The computer equipment was purchased on April 9, 2020 Depreciation should be calculated on the computer equipment on the straight line basis at a rate of 20% per annum on cost. It is the policy of the business to charge a full month's depreciation in the month of acquisition or disposal 6. On April 1, 2020 John Phelps received a loan of $75,000 from his mother. Interest should be charged on the reducing balance at a rate of 10% per annum The first interest payment is to be made on March 31, 2021. The principalis being paid in equal instalments of $25,000 commencing on September 30, 2020, September 30, 2021 and September 30, 2002. Interest on loan was outstanding at December 31, 2020. 7. For some of the sales debit cards are accepted. John Phelps pays 2.5% debit card commission on gross debit card sales. 8. The balances at the end of each year are as follows: Inventory Trade receivables Prepaid rent Fixtures (net) Trade payables Debit card receivables Required: December 31, 2019 December 31, 2020 S S 41,000 29,300 500 20,000 19,500 1,325 a. Prepare the Statement of Affairs as at January 1, 2020 b. Prepare the Trade Receivables Control Account c. Prepare the Trade Payables Control Accounts 48,500 35,750 600 19,000 19,000 750 (10 marks) (3.5 marks) (7 marks) a. Prepare the Statement of Affairs as at January 1, 2020 b. Prepare the Trade Receivables Control Account c. Prepare the Trade Payables Control Accounts. d. Prepare the Debit Card Receivables Account (10 marks) (3.5 marks) (7 marks) (2.5 marks) e. Prepare the Income Statement for the year ended December 31, 2020 (25 marks) f. Prepare the Statement of changes in owner's equity for the year ended December 31, 2020 (7 marks) g. Prepare comparatively the Statement of Financial Position as at the year ended December 31, 2020 (25 marks) h. Prepare a Statement of Cashflow for the ended December 31, 2020. (20 marks) John Phelps has run a small business for many years and has never kept adequate accounting records. However, a need to obtain a loan from the Bank of Make It Flow, for the expansion of his business has necessitated the preparation of final accounts. As such, he has contracted a medium size accounting firm. WAD & Associates to assist him in preparing a full set of accounting records. You were recently employed to WAD & Associates and have been assigned the task to prepare the final accounts for John Phelps. You were able to ascertain the following information for the year ended December 31, 2020: 1. John Phelps bank transactions for the year January 1 through December 31. 2020 were as follows: Receipts Trade receivables Debit card S Bank Account Payments 430,100 Trade payables 40,000 Electricity 470,100 Rates and rent Loan principal Drawings Computer equipment Overdraft intered Salaries & wages Accounting fee S 272,500 4,500 23,600 25,000 1,250 150,000 750 26,000 7,500 511,100 2. The bank account had a favourable balance on December 31, 2020 of 547.900 before considering Note 3(e) and Note 6 below. 3. During the year a. Discounts allowed by trade payables amounted to $1,350 and allowed to trade receivables amounted $1,840. b. The financial year goods returned by trade receivables amounted to $1,600 and goods returned to trade payables amounted to 56,900 e. The financial year a trade debt of $1.200 owed by Lettie Graham was off-set against the $2.000 owing to the same Lottie Graham a trade creditor. d. A customer, Janet Hutton bought poods using a debit card. She returned goods amounting to $700 and was repaid from the Debit Card takings before applying the commission (see note in 7) goods amounting to $700 and was repaid from the Debit Card takings before applying the commission (see note No. 7) e. John Phelps puts a further $135,000 into the bank account of the business to shore up working capital. This is not yet reflected in the bank balance. 4. The closing trade receivables include $750 in respect of a bad debt that should be written off. 5. The computer equipment was purchased on April 9, 2020 Depreciation should be calculated on the computer equipment on the straight line basis at a rate of 20% per annum on cost. It is the policy of the business to charge a full month's depreciation in the month of acquisition or disposal 6. On April 1, 2020 John Phelps received a loan of $75,000 from his mother. Interest should be charged on the reducing balance at a rate of 10% per annum The first interest payment is to be made on March 31, 2021. The principalis being paid in equal instalments of $25,000 commencing on September 30, 2020, September 30, 2021 and September 30, 2002. Interest on loan was outstanding at December 31, 2020. 7. For some of the sales debit cards are accepted. John Phelps pays 2.5% debit card commission on gross debit card sales. 8. The balances at the end of each year are as follows: Inventory Trade receivables Prepaid rent Fixtures (net) Trade payables Debit card receivables Required: December 31, 2019 December 31, 2020 S S 41,000 29,300 500 20,000 19,500 1,325 a. Prepare the Statement of Affairs as at January 1, 2020 b. Prepare the Trade Receivables Control Account c. Prepare the Trade Payables Control Accounts 48,500 35,750 600 19,000 19,000 750 (10 marks) (3.5 marks) (7 marks) a. Prepare the Statement of Affairs as at January 1, 2020 b. Prepare the Trade Receivables Control Account c. Prepare the Trade Payables Control Accounts. d. Prepare the Debit Card Receivables Account (10 marks) (3.5 marks) (7 marks) (2.5 marks) e. Prepare the Income Statement for the year ended December 31, 2020 (25 marks) f. Prepare the Statement of changes in owner's equity for the year ended December 31, 2020 (7 marks) g. Prepare comparatively the Statement of Financial Position as at the year ended December 31, 2020 (25 marks) h. Prepare a Statement of Cashflow for the ended December 31, 2020. (20 marks) John Phelps has run a small business for many years and has never kept adequate accounting records. However, a need to obtain a loan from the Bank of Make It Flow, for the expansion of his business has necessitated the preparation of final accounts. As such, he has contracted a medium size accounting firm. WAD & Associates to assist him in preparing a full set of accounting records. You were recently employed to WAD & Associates and have been assigned the task to prepare the final accounts for John Phelps. You were able to ascertain the following information for the year ended December 31, 2020: 1. John Phelps bank transactions for the year January 1 through December 31. 2020 were as follows: Receipts Trade receivables Debit card S Bank Account Payments 430,100 Trade payables 40,000 Electricity 470,100 Rates and rent Loan principal Drawings Computer equipment Overdraft intered Salaries & wages Accounting fee S 272,500 4,500 23,600 25,000 1,250 150,000 750 26,000 7,500 511,100 2. The bank account had a favourable balance on December 31, 2020 of 547.900 before considering Note 3(e) and Note 6 below. 3. During the year a. Discounts allowed by trade payables amounted to $1,350 and allowed to trade receivables amounted $1,840. b. The financial year goods returned by trade receivables amounted to $1,600 and goods returned to trade payables amounted to 56,900 e. The financial year a trade debt of $1.200 owed by Lettie Graham was off-set against the $2.000 owing to the same Lottie Graham a trade creditor. d. A customer, Janet Hutton bought poods using a debit card. She returned goods amounting to $700 and was repaid from the Debit Card takings before applying the commission (see note in 7) goods amounting to $700 and was repaid from the Debit Card takings before applying the commission (see note No. 7) e. John Phelps puts a further $135,000 into the bank account of the business to shore up working capital. This is not yet reflected in the bank balance. 4. The closing trade receivables include $750 in respect of a bad debt that should be written off. 5. The computer equipment was purchased on April 9, 2020 Depreciation should be calculated on the computer equipment on the straight line basis at a rate of 20% per annum on cost. It is the policy of the business to charge a full month's depreciation in the month of acquisition or disposal 6. On April 1, 2020 John Phelps received a loan of $75,000 from his mother. Interest should be charged on the reducing balance at a rate of 10% per annum The first interest payment is to be made on March 31, 2021. The principalis being paid in equal instalments of $25,000 commencing on September 30, 2020, September 30, 2021 and September 30, 2002. Interest on loan was outstanding at December 31, 2020. 7. For some of the sales debit cards are accepted. John Phelps pays 2.5% debit card commission on gross debit card sales. 8. The balances at the end of each year are as follows: Inventory Trade receivables Prepaid rent Fixtures (net) Trade payables Debit card receivables Required: December 31, 2019 December 31, 2020 S S 41,000 29,300 500 20,000 19,500 1,325 a. Prepare the Statement of Affairs as at January 1, 2020 b. Prepare the Trade Receivables Control Account c. Prepare the Trade Payables Control Accounts 48,500 35,750 600 19,000 19,000 750 (10 marks) (3.5 marks) (7 marks) a. Prepare the Statement of Affairs as at January 1, 2020 b. Prepare the Trade Receivables Control Account c. Prepare the Trade Payables Control Accounts. d. Prepare the Debit Card Receivables Account (10 marks) (3.5 marks) (7 marks) (2.5 marks) e. Prepare the Income Statement for the year ended December 31, 2020 (25 marks) f. Prepare the Statement of changes in owner's equity for the year ended December 31, 2020 (7 marks) g. Prepare comparatively the Statement of Financial Position as at the year ended December 31, 2020 (25 marks) h. Prepare a Statement of Cashflow for the ended December 31, 2020. (20 marks) John Phelps has run a small business for many years and has never kept adequate accounting records. However, a need to obtain a loan from the Bank of Make It Flow, for the expansion of his business has necessitated the preparation of final accounts. As such, he has contracted a medium size accounting firm. WAD & Associates to assist him in preparing a full set of accounting records. You were recently employed to WAD & Associates and have been assigned the task to prepare the final accounts for John Phelps. You were able to ascertain the following information for the year ended December 31, 2020: 1. John Phelps bank transactions for the year January 1 through December 31. 2020 were as follows: Receipts Trade receivables Debit card S Bank Account Payments 430,100 Trade payables 40,000 Electricity 470,100 Rates and rent Loan principal Drawings Computer equipment Overdraft intered Salaries & wages Accounting fee S 272,500 4,500 23,600 25,000 1,250 150,000 750 26,000 7,500 511,100 2. The bank account had a favourable balance on December 31, 2020 of 547.900 before considering Note 3(e) and Note 6 below. 3. During the year a. Discounts allowed by trade payables amounted to $1,350 and allowed to trade receivables amounted $1,840. b. The financial year goods returned by trade receivables amounted to $1,600 and goods returned to trade payables amounted to 56,900 e. The financial year a trade debt of $1.200 owed by Lettie Graham was off-set against the $2.000 owing to the same Lottie Graham a trade creditor. d. A customer, Janet Hutton bought poods using a debit card. She returned goods amounting to $700 and was repaid from the Debit Card takings before applying the commission (see note in 7) goods amounting to $700 and was repaid from the Debit Card takings before applying the commission (see note No. 7) e. John Phelps puts a further $135,000 into the bank account of the business to shore up working capital. This is not yet reflected in the bank balance. 4. The closing trade receivables include $750 in respect of a bad debt that should be written off. 5. The computer equipment was purchased on April 9, 2020 Depreciation should be calculated on the computer equipment on the straight line basis at a rate of 20% per annum on cost. It is the policy of the business to charge a full month's depreciation in the month of acquisition or disposal 6. On April 1, 2020 John Phelps received a loan of $75,000 from his mother. Interest should be charged on the reducing balance at a rate of 10% per annum The first interest payment is to be made on March 31, 2021. The principalis being paid in equal instalments of $25,000 commencing on September 30, 2020, September 30, 2021 and September 30, 2002. Interest on loan was outstanding at December 31, 2020. 7. For some of the sales debit cards are accepted. John Phelps pays 2.5% debit card commission on gross debit card sales. 8. The balances at the end of each year are as follows: Inventory Trade receivables Prepaid rent Fixtures (net) Trade payables Debit card receivables Required: December 31, 2019 December 31, 2020 S S 41,000 29,300 500 20,000 19,500 1,325 a. Prepare the Statement of Affairs as at January 1, 2020 b. Prepare the Trade Receivables Control Account c. Prepare the Trade Payables Control Accounts 48,500 35,750 600 19,000 19,000 750 (10 marks) (3.5 marks) (7 marks) a. Prepare the Statement of Affairs as at January 1, 2020 b. Prepare the Trade Receivables Control Account c. Prepare the Trade Payables Control Accounts. d. Prepare the Debit Card Receivables Account (10 marks) (3.5 marks) (7 marks) (2.5 marks) e. Prepare the Income Statement for the year ended December 31, 2020 (25 marks) f. Prepare the Statement of changes in owner's equity for the year ended December 31, 2020 (7 marks) g. Prepare comparatively the Statement of Financial Position as at the year ended December 31, 2020 (25 marks) h. Prepare a Statement of Cashflow for the ended December 31, 2020. (20 marks) John Phelps has run a small business for many years and has never kept adequate accounting records. However, a need to obtain a loan from the Bank of Make It Flow, for the expansion of his business has necessitated the preparation of final accounts. As such, he has contracted a medium size accounting firm. WAD & Associates to assist him in preparing a full set of accounting records. You were recently employed to WAD & Associates and have been assigned the task to prepare the final accounts for John Phelps. You were able to ascertain the following information for the year ended December 31, 2020: 1. John Phelps bank transactions for the year January 1 through December 31. 2020 were as follows: Receipts Trade receivables Debit card S Bank Account Payments 430,100 Trade payables 40,000 Electricity 470,100 Rates and rent Loan principal Drawings Computer equipment Overdraft intered Salaries & wages Accounting fee S 272,500 4,500 23,600 25,000 1,250 150,000 750 26,000 7,500 511,100 2. The bank account had a favourable balance on December 31, 2020 of 547.900 before considering Note 3(e) and Note 6 below. 3. During the year a. Discounts allowed by trade payables amounted to $1,350 and allowed to trade receivables amounted $1,840. b. The financial year goods returned by trade receivables amounted to $1,600 and goods returned to trade payables amounted to 56,900 e. The financial year a trade debt of $1.200 owed by Lettie Graham was off-set against the $2.000 owing to the same Lottie Graham a trade creditor. d. A customer, Janet Hutton bought poods using a debit card. She returned goods amounting to $700 and was repaid from the Debit Card takings before applying the commission (see note in 7) goods amounting to $700 and was repaid from the Debit Card takings before applying the commission (see note No. 7) e. John Phelps puts a further $135,000 into the bank account of the business to shore up working capital. This is not yet reflected in the bank balance. 4. The closing trade receivables include $750 in respect of a bad debt that should be written off. 5. The computer equipment was purchased on April 9, 2020 Depreciation should be calculated on the computer equipment on the straight line basis at a rate of 20% per annum on cost. It is the policy of the business to charge a full month's depreciation in the month of acquisition or disposal 6. On April 1, 2020 John Phelps received a loan of $75,000 from his mother. Interest should be charged on the reducing balance at a rate of 10% per annum The first interest payment is to be made on March 31, 2021. The principalis being paid in equal instalments of $25,000 commencing on September 30, 2020, September 30, 2021 and September 30, 2002. Interest on loan was outstanding at December 31, 2020. 7. For some of the sales debit cards are accepted. John Phelps pays 2.5% debit card commission on gross debit card sales. 8. The balances at the end of each year are as follows: Inventory Trade receivables Prepaid rent Fixtures (net) Trade payables Debit card receivables Required: December 31, 2019 December 31, 2020 S S 41,000 29,300 500 20,000 19,500 1,325 a. Prepare the Statement of Affairs as at January 1, 2020 b. Prepare the Trade Receivables Control Account c. Prepare the Trade Payables Control Accounts 48,500 35,750 600 19,000 19,000 750 (10 marks) (3.5 marks) (7 marks) a. Prepare the Statement of Affairs as at January 1, 2020 b. Prepare the Trade Receivables Control Account c. Prepare the Trade Payables Control Accounts. d. Prepare the Debit Card Receivables Account (10 marks) (3.5 marks) (7 marks) (2.5 marks) e. Prepare the Income Statement for the year ended December 31, 2020 (25 marks) f. Prepare the Statement of changes in owner's equity for the year ended December 31, 2020 (7 marks) g. Prepare comparatively the Statement of Financial Position as at the year ended December 31, 2020 (25 marks) h. Prepare a Statement of Cashflow for the ended December 31, 2020. (20 marks) John Phelps has run a small business for many years and has never kept adequate accounting records. However, a need to obtain a loan from the Bank of Make It Flow, for the expansion of his business has necessitated the preparation of final accounts. As such, he has contracted a medium size accounting firm. WAD & Associates to assist him in preparing a full set of accounting records. You were recently employed to WAD & Associates and have been assigned the task to prepare the final accounts for John Phelps. You were able to ascertain the following information for the year ended December 31, 2020: 1. John Phelps bank transactions for the year January 1 through December 31. 2020 were as follows: Receipts Trade receivables Debit card S Bank Account Payments 430,100 Trade payables 40,000 Electricity 470,100 Rates and rent Loan principal Drawings Computer equipment Overdraft intered Salaries & wages Accounting fee S 272,500 4,500 23,600 25,000 1,250 150,000 750 26,000 7,500 511,100 2. The bank account had a favourable balance on December 31, 2020 of 547.900 before considering Note 3(e) and Note 6 below. 3. During the year a. Discounts allowed by trade payables amounted to $1,350 and allowed to trade receivables amounted $1,840. b. The financial year goods returned by trade receivables amounted to $1,600 and goods returned to trade payables amounted to 56,900 e. The financial year a trade debt of $1.200 owed by Lettie Graham was off-set against the $2.000 owing to the same Lottie Graham a trade creditor. d. A customer, Janet Hutton bought poods using a debit card. She returned goods amounting to $700 and was repaid from the Debit Card takings before applying the commission (see note in 7) goods amounting to $700 and was repaid from the Debit Card takings before applying the commission (see note No. 7) e. John Phelps puts a further $135,000 into the bank account of the business to shore up working capital. This is not yet reflected in the bank balance. 4. The closing trade receivables include $750 in respect of a bad debt that should be written off. 5. The computer equipment was purchased on April 9, 2020 Depreciation should be calculated on the computer equipment on the straight line basis at a rate of 20% per annum on cost. It is the policy of the business to charge a full month's depreciation in the month of acquisition or disposal 6. On April 1, 2020 John Phelps received a loan of $75,000 from his mother. Interest should be charged on the reducing balance at a rate of 10% per annum The first interest payment is to be made on March 31, 2021. The principalis being paid in equal instalments of $25,000 commencing on September 30, 2020, September 30, 2021 and September 30, 2002. Interest on loan was outstanding at December 31, 2020. 7. For some of the sales debit cards are accepted. John Phelps pays 2.5% debit card commission on gross debit card sales. 8. The balances at the end of each year are as follows: Inventory Trade receivables Prepaid rent Fixtures (net) Trade payables Debit card receivables Required: December 31, 2019 December 31, 2020 S S 41,000 29,300 500 20,000 19,500 1,325 a. Prepare the Statement of Affairs as at January 1, 2020 b. Prepare the Trade Receivables Control Account c. Prepare the Trade Payables Control Accounts 48,500 35,750 600 19,000 19,000 750 (10 marks) (3.5 marks) (7 marks) a. Prepare the Statement of Affairs as at January 1, 2020 b. Prepare the Trade Receivables Control Account c. Prepare the Trade Payables Control Accounts. d. Prepare the Debit Card Receivables Account (10 marks) (3.5 marks) (7 marks) (2.5 marks) e. Prepare the Income Statement for the year ended December 31, 2020 (25 marks) f. Prepare the Statement of changes in owner's equity for the year ended December 31, 2020 (7 marks) g. Prepare comparatively the Statement of Financial Position as at the year ended December 31, 2020 (25 marks) h. Prepare a Statement of Cashflow for the ended December 31, 2020. (20 marks) John Phelps has run a small business for many years and has never kept adequate accounting records. However, a need to obtain a loan from the Bank of Make It Flow, for the expansion of his business has necessitated the preparation of final accounts. As such, he has contracted a medium size accounting firm. WAD & Associates to assist him in preparing a full set of accounting records. You were recently employed to WAD & Associates and have been assigned the task to prepare the final accounts for John Phelps. You were able to ascertain the following information for the year ended December 31, 2020: 1. John Phelps bank transactions for the year January 1 through December 31. 2020 were as follows: Receipts Trade receivables Debit card S Bank Account Payments 430,100 Trade payables 40,000 Electricity 470,100 Rates and rent Loan principal Drawings Computer equipment Overdraft intered Salaries & wages Accounting fee S 272,500 4,500 23,600 25,000 1,250 150,000 750 26,000 7,500 511,100 2. The bank account had a favourable balance on December 31, 2020 of 547.900 before considering Note 3(e) and Note 6 below. 3. During the year a. Discounts allowed by trade payables amounted to $1,350 and allowed to trade receivables amounted $1,840. b. The financial year goods returned by trade receivables amounted to $1,600 and goods returned to trade payables amounted to 56,900 e. The financial year a trade debt of $1.200 owed by Lettie Graham was off-set against the $2.000 owing to the same Lottie Graham a trade creditor. d. A customer, Janet Hutton bought poods using a debit card. She returned goods amounting to $700 and was repaid from the Debit Card takings before applying the commission (see note in 7) goods amounting to $700 and was repaid from the Debit Card takings before applying the commission (see note No. 7) e. John Phelps puts a further $135,000 into the bank account of the business to shore up working capital. This is not yet reflected in the bank balance. 4. The closing trade receivables include $750 in respect of a bad debt that should be written off. 5. The computer equipment was purchased on April 9, 2020 Depreciation should be calculated on the computer equipment on the straight line basis at a rate of 20% per annum on cost. It is the policy of the business to charge a full month's depreciation in the month of acquisition or disposal 6. On April 1, 2020 John Phelps received a loan of $75,000 from his mother. Interest should be charged on the reducing balance at a rate of 10% per annum The first interest payment is to be made on March 31, 2021. The principalis being paid in equal instalments of $25,000 commencing on September 30, 2020, September 30, 2021 and September 30, 2002. Interest on loan was outstanding at December 31, 2020. 7. For some of the sales debit cards are accepted. John Phelps pays 2.5% debit card commission on gross debit card sales. 8. The balances at the end of each year are as follows: Inventory Trade receivables Prepaid rent Fixtures (net) Trade payables Debit card receivables Required: December 31, 2019 December 31, 2020 S S 41,000 29,300 500 20,000 19,500 1,325 a. Prepare the Statement of Affairs as at January 1, 2020 b. Prepare the Trade Receivables Control Account c. Prepare the Trade Payables Control Accounts 48,500 35,750 600 19,000 19,000 750 (10 marks) (3.5 marks) (7 marks) a. Prepare the Statement of Affairs as at January 1, 2020 b. Prepare the Trade Receivables Control Account c. Prepare the Trade Payables Control Accounts. d. Prepare the Debit Card Receivables Account (10 marks) (3.5 marks) (7 marks) (2.5 marks) e. Prepare the Income Statement for the year ended December 31, 2020 (25 marks) f. Prepare the Statement of changes in owner's equity for the year ended December 31, 2020 (7 marks) g. Prepare comparatively the Statement of Financial Position as at the year ended December 31, 2020 (25 marks) h. Prepare a Statement of Cashflow for the ended December 31, 2020. (20 marks) John Phelps has run a small business for many years and has never kept adequate accounting records. However, a need to obtain a loan from the Bank of Make It Flow, for the expansion of his business has necessitated the preparation of final accounts. As such, he has contracted a medium size accounting firm. WAD & Associates to assist him in preparing a full set of accounting records. You were recently employed to WAD & Associates and have been assigned the task to prepare the final accounts for John Phelps. You were able to ascertain the following information for the year ended December 31, 2020: 1. John Phelps bank transactions for the year January 1 through December 31. 2020 were as follows: Receipts Trade receivables Debit card S Bank Account Payments 430,100 Trade payables 40,000 Electricity 470,100 Rates and rent Loan principal Drawings Computer equipment Overdraft intered Salaries & wages Accounting fee S 272,500 4,500 23,600 25,000 1,250 150,000 750 26,000 7,500 511,100 2. The bank account had a favourable balance on December 31, 2020 of 547.900 before considering Note 3(e) and Note 6 below. 3. During the year a. Discounts allowed by trade payables amounted to $1,350 and allowed to trade receivables amounted $1,840. b. The financial year goods returned by trade receivables amounted to $1,600 and goods returned to trade payables amounted to 56,900 e. The financial year a trade debt of $1.200 owed by Lettie Graham was off-set against the $2.000 owing to the same Lottie Graham a trade creditor. d. A customer, Janet Hutton bought poods using a debit card. She returned goods amounting to $700 and was repaid from the Debit Card takings before applying the commission (see note in 7) goods amounting to $700 and was repaid from the Debit Card takings before applying the commission (see note No. 7) e. John Phelps puts a further $135,000 into the bank account of the business to shore up working capital. This is not yet reflected in the bank balance. 4. The closing trade receivables include $750 in respect of a bad debt that should be written off. 5. The computer equipment was purchased on April 9, 2020 Depreciation should be calculated on the computer equipment on the straight line basis at a rate of 20% per annum on cost. It is the policy of the business to charge a full month's depreciation in the month of acquisition or disposal 6. On April 1, 2020 John Phelps received a loan of $75,000 from his mother. Interest should be charged on the reducing balance at a rate of 10% per annum The first interest payment is to be made on March 31, 2021. The principalis being paid in equal instalments of $25,000 commencing on September 30, 2020, September 30, 2021 and September 30, 2002. Interest on loan was outstanding at December 31, 2020. 7. For some of the sales debit cards are accepted. John Phelps pays 2.5% debit card commission on gross debit card sales. 8. The balances at the end of each year are as follows: Inventory Trade receivables Prepaid rent Fixtures (net) Trade payables Debit card receivables Required: December 31, 2019 December 31, 2020 S S 41,000 29,300 500 20,000 19,500 1,325 a. Prepare the Statement of Affairs as at January 1, 2020 b. Prepare the Trade Receivables Control Account c. Prepare the Trade Payables Control Accounts 48,500 35,750 600 19,000 19,000 750 (10 marks) (3.5 marks) (7 marks) a. Prepare the Statement of Affairs as at January 1, 2020 b. Prepare the Trade Receivables Control Account c. Prepare the Trade Payables Control Accounts. d. Prepare the Debit Card Receivables Account (10 marks) (3.5 marks) (7 marks) (2.5 marks) e. Prepare the Income Statement for the year ended December 31, 2020 (25 marks) f. Prepare the Statement of changes in owner's equity for the year ended December 31, 2020 (7 marks) g. Prepare comparatively the Statement of Financial Position as at the year ended December 31, 2020 (25 marks) h. Prepare a Statement of Cashflow for the ended December 31, 2020. (20 marks) John Phelps has run a small business for many years and has never kept adequate accounting records. However, a need to obtain a loan from the Bank of Make It Flow, for the expansion of his business has necessitated the preparation of final accounts. As such, he has contracted a medium size accounting firm. WAD & Associates to assist him in preparing a full set of accounting records. You were recently employed to WAD & Associates and have been assigned the task to prepare the final accounts for John Phelps. You were able to ascertain the following information for the year ended December 31, 2020: 1. John Phelps bank transactions for the year January 1 through December 31. 2020 were as follows: Receipts Trade receivables Debit card S Bank Account Payments 430,100 Trade payables 40,000 Electricity 470,100 Rates and rent Loan principal Drawings Computer equipment Overdraft intered Salaries & wages Accounting fee S 272,500 4,500 23,600 25,000 1,250 150,000 750 26,000 7,500 511,100 2. The bank account had a favourable balance on December 31, 2020 of 547.900 before considering Note 3(e) and Note 6 below. 3. During the year a. Discounts allowed by trade payables amounted to $1,350 and allowed to trade receivables amounted $1,840. b. The financial year goods returned by trade receivables amounted to $1,600 and goods returned to trade payables amounted to 56,900 e. The financial year a trade debt of $1.200 owed by Lettie Graham was off-set against the $2.000 owing to the same Lottie Graham a trade creditor. d. A customer, Janet Hutton bought poods using a debit card. She returned goods amounting to $700 and was repaid from the Debit Card takings before applying the commission (see note in 7) goods amounting to $700 and was repaid from the Debit Card takings before applying the commission (see note No. 7) e. John Phelps puts a further $135,000 into the bank account of the business to shore up working capital. This is not yet reflected in the bank balance. 4. The closing trade receivables include $750 in respect of a bad debt that should be written off. 5. The computer equipment was purchased on April 9, 2020 Depreciation should be calculated on the computer equipment on the straight line basis at a rate of 20% per annum on cost. It is the policy of the business to charge a full month's depreciation in the month of acquisition or disposal 6. On April 1, 2020 John Phelps received a loan of $75,000 from his mother. Interest should be charged on the reducing balance at a rate of 10% per annum The first interest payment is to be made on March 31, 2021. The principalis being paid in equal instalments of $25,000 commencing on September 30, 2020, September 30, 2021 and September 30, 2002. Interest on loan was outstanding at December 31, 2020. 7. For some of the sales debit cards are accepted. John Phelps pays 2.5% debit card commission on gross debit card sales. 8. The balances at the end of each year are as follows: Inventory Trade receivables Prepaid rent Fixtures (net) Trade payables Debit card receivables Required: December 31, 2019 December 31, 2020 S S 41,000 29,300 500 20,000 19,500 1,325 a. Prepare the Statement of Affairs as at January 1, 2020 b. Prepare the Trade Receivables Control Account c. Prepare the Trade Payables Control Accounts 48,500 35,750 600 19,000 19,000 750 (10 marks) (3.5 marks) (7 marks) a. Prepare the Statement of Affairs as at January 1, 2020 b. Prepare the Trade Receivables Control Account c. Prepare the Trade Payables Control Accounts. d. Prepare the Debit Card Receivables Account (10 marks) (3.5 marks) (7 marks) (2.5 marks) e. Prepare the Income Statement for the year ended December 31, 2020 (25 marks) f. Prepare the Statement of changes in owner's equity for the year ended December 31, 2020 (7 marks) g. Prepare comparatively the Statement of Financial Position as at the year ended December 31, 2020 (25 marks) h. Prepare a Statement of Cashflow for the ended December 31, 2020. (20 marks) John Phelps has run a small business for many years and has never kept adequate accounting records. However, a need to obtain a loan from the Bank of Make It Flow, for the expansion of his business has necessitated the preparation of final accounts. As such, he has contracted a medium size accounting firm. WAD & Associates to assist him in preparing a full set of accounting records. You were recently employed to WAD & Associates and have been assigned the task to prepare the final accounts for John Phelps. You were able to ascertain the following information for the year ended December 31, 2020: 1. John Phelps bank transactions for the year January 1 through December 31. 2020 were as follows: Receipts Trade receivables Debit card S Bank Account Payments 430,100 Trade payables 40,000 Electricity 470,100 Rates and rent Loan principal Drawings Computer equipment Overdraft intered Salaries & wages Accounting fee S 272,500 4,500 23,600 25,000 1,250 150,000 750 26,000 7,500 511,100 2. The bank account had a favourable balance on December 31, 2020 of 547.900 before considering Note 3(e) and Note 6 below. 3. During the year a. Discounts allowed by trade payables amounted to $1,350 and allowed to trade receivables amounted $1,840. b. The financial year goods returned by trade receivables amounted to $1,600 and goods returned to trade payables amounted to 56,900 e. The financial year a trade debt of $1.200 owed by Lettie Graham was off-set against the $2.000 owing to the same Lottie Graham a trade creditor. d. A customer, Janet Hutton bought poods using a debit card. She returned goods amounting to $700 and was repaid from the Debit Card takings before applying the commission (see note in 7) goods amounting to $700 and was repaid from the Debit Card takings before applying the commission (see note No. 7) e. John Phelps puts a further $135,000 into the bank account of the business to shore up working capital. This is not yet reflected in the bank balance. 4. The closing trade receivables include $750 in respect of a bad debt that should be written off. 5. The computer equipment was purchased on April 9, 2020 Depreciation should be calculated on the computer equipment on the straight line basis at a rate of 20% per annum on cost. It is the policy of the business to charge a full month's depreciation in the month of acquisition or disposal 6. On April 1, 2020 John Phelps received a loan of $75,000 from his mother. Interest should be charged on the reducing balance at a rate of 10% per annum The first interest payment is to be made on March 31, 2021. The principalis being paid in equal instalments of $25,000 commencing on September 30, 2020, September 30, 2021 and September 30, 2002. Interest on loan was outstanding at December 31, 2020. 7. For some of the sales debit cards are accepted. John Phelps pays 2.5% debit card commission on gross debit card sales. 8. The balances at the end of each year are as follows: Inventory Trade receivables Prepaid rent Fixtures (net) Trade payables Debit card receivables Required: December 31, 2019 December 31, 2020 S S 41,000 29,300 500 20,000 19,500 1,325 a. Prepare the Statement of Affairs as at January 1, 2020 b. Prepare the Trade Receivables Control Account c. Prepare the Trade Payables Control Accounts 48,500 35,750 600 19,000 19,000 750 (10 marks) (3.5 marks) (7 marks) a. Prepare the Statement of Affairs as at January 1, 2020 b. Prepare the Trade Receivables Control Account c. Prepare the Trade Payables Control Accounts. d. Prepare the Debit Card Receivables Account (10 marks) (3.5 marks) (7 marks) (2.5 marks) e. Prepare the Income Statement for the year ended December 31, 2020 (25 marks) f. Prepare the Statement of changes in owner's equity for the year ended December 31, 2020 (7 marks) g. Prepare comparatively the Statement of Financial Position as at the year ended December 31, 2020 (25 marks) h. Prepare a Statement of Cashflow for the ended December 31, 2020. (20 marks) John Phelps has run a small business for many years and has never kept adequate accounting records. However, a need to obtain a loan from the Bank of Make It Flow, for the expansion of his business has necessitated the preparation of final accounts. As such, he has contracted a medium size accounting firm. WAD & Associates to assist him in preparing a full set of accounting records. You were recently employed to WAD & Associates and have been assigned the task to prepare the final accounts for John Phelps. You were able to ascertain the following information for the year ended December 31, 2020: 1. John Phelps bank transactions for the year January 1 through December 31. 2020 were as follows: Receipts Trade receivables Debit card S Bank Account Payments 430,100 Trade payables 40,000 Electricity 470,100 Rates and rent Loan principal Drawings Computer equipment Overdraft intered Salaries & wages Accounting fee S 272,500 4,500 23,600 25,000 1,250 150,000 750 26,000 7,500 511,100 2. The bank account had a favourable balance on December 31, 2020 of 547.900 before considering Note 3(e) and Note 6 below. 3. During the year a. Discounts allowed by trade payables amounted to $1,350 and allowed to trade receivables amounted $1,840. b. The financial year goods returned by trade receivables amounted to $1,600 and goods returned to trade payables amounted to 56,900 e. The financial year a trade debt of $1.200 owed by Lettie Graham was off-set against the $2.000 owing to the same Lottie Graham a trade creditor. d. A customer, Janet Hutton bought poods using a debit card. She returned goods amounting to $700 and was repaid from the Debit Card takings before applying the commission (see note in 7) goods amounting to $700 and was repaid from the Debit Card takings before applying the commission (see note No. 7) e. John Phelps puts a further $135,000 into the bank account of the business to shore up working capital. This is not yet reflected in the bank balance. 4. The closing trade receivables include $750 in respect of a bad debt that should be written off. 5. The computer equipment was purchased on April 9, 2020 Depreciation should be calculated on the computer equipment on the straight line basis at a rate of 20% per annum on cost. It is the policy of the business to charge a full month's depreciation in the month of acquisition or disposal 6. On April 1, 2020 John Phelps received a loan of $75,000 from his mother. Interest should be charged on the reducing balance at a rate of 10% per annum The first interest payment is to be made on March 31, 2021. The principalis being paid in equal instalments of $25,000 commencing on September 30, 2020, September 30, 2021 and September 30, 2002. Interest on loan was outstanding at December 31, 2020. 7. For some of the sales debit cards are accepted. John Phelps pays 2.5% debit card commission on gross debit card sales. 8. The balances at the end of each year are as follows: Inventory Trade receivables Prepaid rent Fixtures (net) Trade payables Debit card receivables Required: December 31, 2019 December 31, 2020 S S 41,000 29,300 500 20,000 19,500 1,325 a. Prepare the Statement of Affairs as at January 1, 2020 b. Prepare the Trade Receivables Control Account c. Prepare the Trade Payables Control Accounts 48,500 35,750 600 19,000 19,000 750 (10 marks) (3.5 marks) (7 marks) a. Prepare the Statement of Affairs as at January 1, 2020 b. Prepare the Trade Receivables Control Account c. Prepare the Trade Payables Control Accounts. d. Prepare the Debit Card Receivables Account (10 marks) (3.5 marks) (7 marks) (2.5 marks) e. Prepare the Income Statement for the year ended December 31, 2020 (25 marks) f. Prepare the Statement of changes in owner's equity for the year ended December 31, 2020 (7 marks) g. Prepare comparatively the Statement of Financial Position as at the year ended December 31, 2020 (25 marks) h. Prepare a Statement of Cashflow for the ended December 31, 2020. (20 marks) John Phelps has run a small business for many years and has never kept adequate accounting records. However, a need to obtain a loan from the Bank of Make It Flow, for the expansion of his business has necessitated the preparation of final accounts. As such, he has contracted a medium size accounting firm. WAD & Associates to assist him in preparing a full set of accounting records. You were recently employed to WAD & Associates and have been assigned the task to prepare the final accounts for John Phelps. You were able to ascertain the following information for the year ended December 31, 2020: 1. John Phelps bank transactions for the year January 1 through December 31. 2020 were as follows: Receipts Trade receivables Debit card S Bank Account Payments 430,100 Trade payables 40,000 Electricity 470,100 Rates and rent Loan principal Drawings Computer equipment Overdraft intered Salaries & wages Accounting fee S 272,500 4,500 23,600 25,000 1,250 150,000 750 26,000 7,500 511,100 2. The bank account had a favourable balance on December 31, 2020 of 547.900 before considering Note 3(e) and Note 6 below. 3. During the year a. Discounts allowed by trade payables amounted to $1,350 and allowed to trade receivables amounted $1,840. b. The financial year goods returned by trade receivables amounted to $1,600 and goods returned to trade payables amounted to 56,900 e. The financial year a trade debt of $1.200 owed by Lettie Graham was off-set against the $2.000 owing to the same Lottie Graham a trade creditor. d. A customer, Janet Hutton bought poods using a debit card. She returned goods amounting to $700 and was repaid from the Debit Card takings before applying the commission (see note in 7) goods amounting to $700 and was repaid from the Debit Card takings before applying the commission (see note No. 7) e. John Phelps puts a further $135,000 into the bank account of the business to shore up working capital. This is not yet reflected in the bank balance. 4. The closing trade receivables include $750 in respect of a bad debt that should be written off. 5. The computer equipment was purchased on April 9, 2020 Depreciation should be calculated on the computer equipment on the straight line basis at a rate of 20% per annum on cost. It is the policy of the business to charge a full month's depreciation in the month of acquisition or disposal 6. On April 1, 2020 John Phelps received a loan of $75,000 from his mother. Interest should be charged on the reducing balance at a rate of 10% per annum The first interest payment is to be made on March 31, 2021. The principalis being paid in equal instalments of $25,000 commencing on September 30, 2020, September 30, 2021 and September 30, 2002. Interest on loan was outstanding at December 31, 2020. 7. For some of the sales debit cards are accepted. John Phelps pays 2.5% debit card commission on gross debit card sales. 8. The balances at the end of each year are as follows: Inventory Trade receivables Prepaid rent Fixtures (net) Trade payables Debit card receivables Required: December 31, 2019 December 31, 2020 S S 41,000 29,300 500 20,000 19,500 1,325 a. Prepare the Statement of Affairs as at January 1, 2020 b. Prepare the Trade Receivables Control Account c. Prepare the Trade Payables Control Accounts 48,500 35,750 600 19,000 19,000 750 (10 marks) (3.5 marks) (7 marks) a. Prepare the Statement of Affairs as at January 1, 2020 b. Prepare the Trade Receivables Control Account c. Prepare the Trade Payables Control Accounts. d. Prepare the Debit Card Receivables Account (10 marks) (3.5 marks) (7 marks) (2.5 marks) e. Prepare the Income Statement for the year ended December 31, 2020 (25 marks) f. Prepare the Statement of changes in owner's equity for the year ended December 31, 2020 (7 marks) g. Prepare comparatively the Statement of Financial Position as at the year ended December 31, 2020 (25 marks) h. Prepare a Statement of Cashflow for the ended December 31, 2020. (20 marks)
Expert Answer:
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particulars Loan from Mother Interest on Loan payable Trade payables Debit card commission Payable C... View the full answer
Related Book For
Accounting Principles
ISBN: 978-1119048473
7th Canadian Edition Volume 2
Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Warren, Lori Novak
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