You have been provided with the Unadjusted Trial Balance for Whiteley Ltd. as at June 30,...

  

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You have been provided with the Unadjusted Trial Balance for Whiteley Ltd. as at June 30, 2019. The company uses the periodic system for inventory management. All sales revenue is recorded on credit, no cash sales are made by the company. There are four (4) parts to this question including PART A: General Journal entries, PART B: Classified Income Statement, PART C: Equity ledger account closing balance calculation and PART D: Classified Balance sheet. WHITELEY LTD Unadjusted Trial Balance as at 30 June 2019 Account Debit Credit $960 000 260 000e 72 000 30 000 24 800 60 300 450 000 36 000 38 800 Share capital (960 000 shares fully paid) General reserve Retained earnings Revaluation surplus Current tax liability Ассounts payable Debentures Bank overdraft (current) Other liabilities (current) $480 000 828 000 Land Buildings Accumulated depreciation – buildings Office equipment Accumulated depreciation - office equip. Delivery vehicles Accounts receivable Allowance for Doubtful debts Inventory (1 July 2018) Investments 157 200 192 000 115 400 84 000 87 200 2 500 288 000 190 000 10 000 Prepaid insurance Sales 589 900+ 7 200 Interest revenue Purchases 298 000 2 600 Sales returns and allowances Purchases returns and allowances 2 400 Freight inwards Freight outwards Wages expense Interest expense Advertising expense Income tax expense Administrative expenses 12 900 10 800 128 200 12 250 37 000 24 800 120 750 $2 806 500 $2. 806 500 Required: Prepare General Journal entries, including narrations, to record the following transactions in the template provided. Whiteley Ltd transactions during 2019/2020: An Account Receivable is to be written off as uncollectible for the amount of $2 036. Additional interest owing on debentures and bank overdraft was $12 150. The directors have decided to transfer $20 000 to the general reserve from retained earnings. Dividends of 15c per share were recommended. An interim dividend of $25 000 had been paid during the year and debited in the Retained earnings account. The company issued 20 000 bonus shares valued at $1 each out of the revaluation surplus. Whiteley Ltd end of financial year adjustments: • Depreciation to be recorded for the full year on buildings at the rate of 5% p.a., and on furniture at the rate of 10% p.a. • Delivery vehicles were purchased on January 1, 2019. The units of production method is used for depreciation purposes based on kilometres travelled during an accounting period. Using the following information record the depreciation expense for 30 June, 2019. Delivery vehicles travelled 40 000 km's in the period since January 1. • Cost Residual value Useful life 84 000 ৪ 000 200 000 km's Interest due on investments amounted to S12 000. Prepaid insurance at the end of the year amounted to $3 000. • Record the estimated Bad debts expense of 0.5% for the year ending 30 June, 2019 based on the percentage of net eredit sales method. (NB: All sales are on a credit basis). Note: No adjusting entry is made for beginning and ending inventory. Under the periodic inventory system, these items would be amended as part of closing entries. e 2019 June 30 You have been provided with the Unadjusted Trial Balance for Whiteley Ltd. as at June 30, 2019. The company uses the periodic system for inventory management. All sales revenue is recorded on credit, no cash sales are made by the company. There are four (4) parts to this question including PART A: General Journal entries, PART B: Classified Income Statement, PART C: Equity ledger account closing balance calculation and PART D: Classified Balance sheet. WHITELEY LTD Unadjusted Trial Balance as at 30 June 2019 Account Debit Credit $960 000 260 000e 72 000 30 000 24 800 60 300 450 000 36 000 38 800 Share capital (960 000 shares fully paid) General reserve Retained earnings Revaluation surplus Current tax liability Ассounts payable Debentures Bank overdraft (current) Other liabilities (current) $480 000 828 000 Land Buildings Accumulated depreciation – buildings Office equipment Accumulated depreciation - office equip. Delivery vehicles Accounts receivable Allowance for Doubtful debts Inventory (1 July 2018) Investments 157 200 192 000 115 400 84 000 87 200 2 500 288 000 190 000 10 000 Prepaid insurance Sales 589 900+ 7 200 Interest revenue Purchases 298 000 2 600 Sales returns and allowances Purchases returns and allowances 2 400 Freight inwards Freight outwards Wages expense Interest expense Advertising expense Income tax expense Administrative expenses 12 900 10 800 128 200 12 250 37 000 24 800 120 750 $2 806 500 $2. 806 500 Required: Prepare General Journal entries, including narrations, to record the following transactions in the template provided. Whiteley Ltd transactions during 2019/2020: An Account Receivable is to be written off as uncollectible for the amount of $2 036. Additional interest owing on debentures and bank overdraft was $12 150. The directors have decided to transfer $20 000 to the general reserve from retained earnings. Dividends of 15c per share were recommended. An interim dividend of $25 000 had been paid during the year and debited in the Retained earnings account. The company issued 20 000 bonus shares valued at $1 each out of the revaluation surplus. Whiteley Ltd end of financial year adjustments: • Depreciation to be recorded for the full year on buildings at the rate of 5% p.a., and on furniture at the rate of 10% p.a. • Delivery vehicles were purchased on January 1, 2019. The units of production method is used for depreciation purposes based on kilometres travelled during an accounting period. Using the following information record the depreciation expense for 30 June, 2019. Delivery vehicles travelled 40 000 km's in the period since January 1. • Cost Residual value Useful life 84 000 ৪ 000 200 000 km's Interest due on investments amounted to S12 000. Prepaid insurance at the end of the year amounted to $3 000. • Record the estimated Bad debts expense of 0.5% for the year ending 30 June, 2019 based on the percentage of net eredit sales method. (NB: All sales are on a credit basis). Note: No adjusting entry is made for beginning and ending inventory. Under the periodic inventory system, these items would be amended as part of closing entries. e 2019 June 30