Mortdale Ltd provides one-day training programs in accounting. It charges $7000 per day. The following events...

 

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Mortdale Ltd provides one-day training programs in accounting. It charges $7000 per day. The following events occumed for the company in the month of June 2019. a Received $62 000 from accounts receivable for sales in previous months. b Paid three months' rent of $36 000 covering 1 June 2019 to 31 August 2019. e Received orders for 70 days' training during the month. Delivered 60 days of the training during the month and received payment for 30 of these days. d Signed a contract to design a special program for lawyers at a price of $50 000. Design will commence in July. Received a $6000 deposit. e Paid $500 000 for new equipment on 1 June and $100 000 to install it. The equipment has a life of 10 years. A contract was signed with a new CEO for $1 000 000 per year. The CEO will start on 1 July. 9 Paid wages during the period of $60 000 with accrued wages of $10 000 owing at the end of the month. h Declared and paid a dividend of $40 000. I Borrowed $24 000 on 1 June from the bank at 10 per cent per annum. Interest and principal repayable in 10 months. Required: 1 Determine total revenue for the month of June 2019. 2 List all expenses for the month of June 2019 fincluding dollar amounts). 3 Assume an opening balance in the cash account of $600 000. What is the closing balance of this account? Mortdale Ltd provides one-day training programs in accounting. It charges $7000 per day. The following events occumed for the company in the month of June 2019. a Received $62 000 from accounts receivable for sales in previous months. b Paid three months' rent of $36 000 covering 1 June 2019 to 31 August 2019. e Received orders for 70 days' training during the month. Delivered 60 days of the training during the month and received payment for 30 of these days. d Signed a contract to design a special program for lawyers at a price of $50 000. Design will commence in July. Received a $6000 deposit. e Paid $500 000 for new equipment on 1 June and $100 000 to install it. The equipment has a life of 10 years. A contract was signed with a new CEO for $1 000 000 per year. The CEO will start on 1 July. 9 Paid wages during the period of $60 000 with accrued wages of $10 000 owing at the end of the month. h Declared and paid a dividend of $40 000. I Borrowed $24 000 on 1 June from the bank at 10 per cent per annum. Interest and principal repayable in 10 months. Required: 1 Determine total revenue for the month of June 2019. 2 List all expenses for the month of June 2019 fincluding dollar amounts). 3 Assume an opening balance in the cash account of $600 000. What is the closing balance of this account?

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1 Mortdale Inc Income Statement for the month of June 2019 Amount Revenu... View the full answer