PART B

Making general journal entries（10%）

Company XYZ has appointed you as an Accountant and you are asked to review the following transactions as at 30 June 2018, which is the current year before any adjusting entries have been made.

 

(a) 08/09/2017 Purchase equipment for cash $5000

(b) 18/10/2017 Provide services to a client A for $500 on account

(c) 20/10/2018 pay the bank loan for $10000

(d) 11/12/2018 Invest additional $30000 cash into the business by the owner

(e) 01/18/2018 Collect an account receivable in cash from client A

(f) 31/01/2018 Pay wages to employees for $5000

(g) 04/02/2018 Paid the electricity bill for $100

(h) 06/04/2018 Sell a piece of equipment for $3000 in cash

(i) 05/05/2018 Withdraw cash by the owner for private usage for $500

(j) 06/06/2018 Borrow money on a long-term basis from a bank for $100000

 

Requirement:

  1. List the effect of each of the following transactions upon any or all of the four financial statements of a business. Apart from indicating the financial statement(s) involved, use appropriate phrases such as ‘increase total assets’, ‘decrease equity’, ‘increase income’, ‘decrease cash flow’ to describe the transaction concerned.
  2. Record all the necessary journals following the template below.

 

                                             General Journal

Particulars Debit Credit
     

 

 

PART C

Prepare a Profit & Loss statement (10%)

Use the following information from the records of Preston Partners to prepare an income statement under the periodic inventory system for the year ended 30 June 2020.

 

Purchases $186 600
Inventory, 1 July 2019  13 860
Inventory, 30 June 2020  12 920
Selling and distribution expenses  45 420
Sales  268 860
Purchases returns and allowances  4 420
Sales returns and allowances  6 220
Administrative expenses  16 460
Freight inwards  3 180
Finance expenses  2 020
$20.00 – Buy Solution

Click on Buy Solution and make payment. All prices shown above are in USD. Payment supported in all currencies. Price shown above includes the solution of all questions mentioned on this page. Please note that our prices are fixed (do not bargain).

After making payment, solution is available instantly.Solution is available either in Word or Excel format unless otherwise specified.

If your question is slightly different from the above question, please contact us at info@myassignmentguru.com with your version of question.