Virtual Yoga is a company started by Arun in I January 2020 during the COVID pandemie....

 

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Virtual Yoga is a company started by Arun in I January 2020 during the COVID pandemie. It conducts vanious Iive stream courses en yega. Its revenae is derived from fees paid by students on a quarterly or semi-annually basis. It also conducts classes for employces of companies. Rocently, its accountant has contracted COVID and was hospitalised. You are being asked to help to finalise drawing up the Trial Balance as of 31 December 2021. Account tile Share capital (S80,000 shares ot S1.00 each) Retained camings, 31 Dec 2020 Training equipment at cost Furmiture and fitings at cost Accumulated depreciation, 31 Dec 2020 - Truining equipment Fumiture and fittings Prepaid insurance Rental expense Debit (S) Credit (5) 80,000 19,750 20,000 20,000 2,000 5,000 5,200 60,000 Insurance expense 5,400 Membership fee received General expenses Wages and salaries Equipment maintenance expense Interest and bank charges Alowance for doubtful debts 141,690 4,072 39,80 6,100 I56 Accounts receivable 6,000 Accounts payable Bank 4,500 86,014 252,940 252,940 The following additional information all of which is considered material and (unless stated otherwise) none of which has been taken into consideration in ariving at the figures shown in the trial balance above is listed below: On I October 2021, Aran sold a training equipment eosting S1.600, with accunnalated depreciation of $150 as at 31 Dec 2020 for cash of S600. Arun deposited the cash into his personal bank account. Arun has also forgotten to inform his accountant of this transaction. Both the cost and the accumulated depreciation of the training equipment sold were included in the amount shown for truining equipment at cost and the accunmilated depreciation for training equipment in the unadjusted trial balance above. The residual value of the training oquipment was originally estimated to be S100. Virtual Yoga is a company started by Arun in I January 2020 during the COVID pandemie. It conducts vanious Iive stream courses en yega. Its revenae is derived from fees paid by students on a quarterly or semi-annually basis. It also conducts classes for employces of companies. Rocently, its accountant has contracted COVID and was hospitalised. You are being asked to help to finalise drawing up the Trial Balance as of 31 December 2021. Account tile Share capital (S80,000 shares ot S1.00 each) Retained camings, 31 Dec 2020 Training equipment at cost Furmiture and fitings at cost Accumulated depreciation, 31 Dec 2020 - Truining equipment Fumiture and fittings Prepaid insurance Rental expense Debit (S) Credit (5) 80,000 19,750 20,000 20,000 2,000 5,000 5,200 60,000 Insurance expense 5,400 Membership fee received General expenses Wages and salaries Equipment maintenance expense Interest and bank charges Alowance for doubtful debts 141,690 4,072 39,80 6,100 I56 Accounts receivable 6,000 Accounts payable Bank 4,500 86,014 252,940 252,940 The following additional information all of which is considered material and (unless stated otherwise) none of which has been taken into consideration in ariving at the figures shown in the trial balance above is listed below: On I October 2021, Aran sold a training equipment eosting S1.600, with accunnalated depreciation of $150 as at 31 Dec 2020 for cash of S600. Arun deposited the cash into his personal bank account. Arun has also forgotten to inform his accountant of this transaction. Both the cost and the accumulated depreciation of the training equipment sold were included in the amount shown for truining equipment at cost and the accunmilated depreciation for training equipment in the unadjusted trial balance above. The residual value of the training oquipment was originally estimated to be S100.

Answer rating: 100% (QA)

The Journal Entries for the unadjusted transactions will be as follows Particulars Dr Cr Accumulated DepreciationTraining Equipment 150 Depreciation 225 Cash 600 Loss on sale of training equipment 625 ... View the full answer