The trial balance of Philip Pearson (the owner of Pearsons Phot Copying Services) as at 1 March
Question:
- The trial balance of Philip Pearson (the owner of Pearson’s Phot Copying Services) as at 1 March 2019 lists the assets, liabilities and owner’s equity below.
Philip Pearson (Pearson’s Photo Copying Services) Trial Balance as at 1 March 2019 | ||
| Balance | |
Account Name | Debit | Credit |
Cash | 3,000 | |
Accounts Receivable | 6,000 | |
Supplies | 3,000 | |
Motor Vehicle | 20,000 | |
Land and Buildings | 200,000 | |
Accounts Payable | | 10,500 |
Long Term Loan | | 145,000 |
Peter Smith - Capital | | 76,500 |
| 232,000 | 232,000 |
During March 2019, Philip Pearson or his business completed the following transactions:
March 1 | Purchased addition supplies on credit terms, $10,500. |
March 2 | Collected $2,200 from a client on account and because we received this money on time, we also gave the client a further $60 discount off their account. |
March 4 | Philip Pearson withdrew $550 cash for his own personal use. |
March 6 | Paid $5,000 off the Long-Term Loan. |
March 9 | Collected $1,800 from a client on account. |
March 11 | Performed copying service for a customer and received $3,200 cash. |
March 15 | Performed copying service for a customer on credit terms, $6,300. |
March 17 | Purchased addition supplies and paid cash, $2,500. |
March 20 | Paid for electricity, $450. |
March 24 | Paid $4,250 off accounts payable balance and because Peter paid this money on time the company also received a further $70 discount off the amount owing. |
March 28 | Philip contributed a further $7,000 cash into the business. |
March 29 | Paid interest on the Long-term loan, $450. |
Additional Information
On 31 March 2019 Philip Pearson counted the supplies still on hand and these were valued at $5,200.
Required:
Assume it is the 31 March 2019 and your team have been asked to prepare:
- A Statement of Financial Performance for the period ending 31 March 2019.
- A Statement of Financial Position as at 31 March 2019.
- A Statement of Cash Flows (using the direct method) as at 31 March 2019.
Financial Accounting
ISBN: 978-1118978085
IFRS 3rd edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso