Trial balance has been extracted from the books of Rawson Traders. Rawson Traders Trial Balance as of
Question:
Trial balance has been extracted from the books of Rawson Traders.
Rawson Traders | |||
Trial Balance as of 30 June 202X | |||
Account no | Account | Debit | Credit |
11010 | Sales | 50,000 | |
11010a | Sales return | 200 | |
11050 | Rent revenue | 400 | |
11060 | Discount revenue | 60 | |
21010 | Purchases | 40,000 | |
21010a | Purchases return | 800 | |
21030 | Cartage on purchases | 400 | |
23010 | Advertising | 1600 | |
23020 | Cartage on sale | 480 | |
23050 | Salaries - sales | 5,280 | |
24090 | Motor vehicle expenses | 800 | |
24100 | Office expenses | 520 | |
24110 | Salaries - office | 2,820 | |
24130 | Rates | 700 | |
25010 | Bad debts expenses | 400 | |
25030 | Discount expenses | 80 | |
26030 | Loss on sale of business segment | 11,000 | |
31020 | Cash in hand | 360 |
|
31030 | Cash at bank | 3,540 | |
31040 | Accounts receivable control | 3,600 | |
31050 | Inventories (1 July 202X) | 15,320 | |
32030 | Motor Vehicle | 12,000 | |
32030 A | Accumulated depreciation on motor vehicle | 10,000 | |
32050 | Premises | 20,000 | |
32060 | Land | 16,000 | |
41010 | Accounts payable control | 3,750 | |
41012.1 | GST collected | 700 | |
41012.1a | GST paid | 450 | |
42020 | Mortgage on premises | 22,000 | |
51010 | Capital - B. Rawson | 48,000 | |
51010a | Drawings - B. Rawson | 160 |
Adjustments:
Inventories of 30 June 202X are $8,000
Rent still owing to B. Rawson is $400
Accrued advertising is $400
Accrued salaries are: Office $330 Sales: $300
Provision for doubtful debts estimated at $200
Rates still owing are $250
Depreciation to be charged on motor vehicles is $2,000
Provision for doubtful debts estimated at $200
On 30 June $1,200 paid for Business Insurance for the following year
Clear GST accounts
prepare the following:
- An Excel worksheet.
- Ledger accounts showing the effects of the adjustment (T format ledger).
- Journal entries to close the ledger.
- A trading account and a profit and loss account after closing entries.
- A fully classified income statement and balance sheet.
- Journal entries for reversal.
Expert Answer:
To solve this problem I will provide the following 1 An Excel worksheet with the adjusted trial balance 2 Ledger accounts showing the effects of the adjustments 3 Journal entries to close the ledger 4 ... View the full answer
