Kargil P/L began operations and completed the following transactions during July 2018 as follows:
|July||1||Sold ordinary shares for cash for $25,000|
|2||Set up a petty cash for $200, to be managed by the receptionist.|
|2||Paid quarterly office rent, $3,300|
|3||Paid cash for office computers, $4,400. This equipment is expected to remain in service for 5 years.|
|3||Employed a full-time draftsman at the rate of $800 per fortnight.|
|3||Purchased milk, coffee, sugar, tissues etc for office amenities for $49.25. This total amount included GST of $13.74.|
|4||Purchased office furniture on credit for $3,960. The furniture should last for 7 years.|
|4||Purchased supplies on credit, $990, terms 2/20 net 30|
|9||Performed Design services for a client on credit, $2,420 terms 1/20, net 30|
|18||Paid electricity bill for the period July 1-15, $275|
|18||Paid wages $800 to the draftsman for the fortnight ending July 17|
|21||Received $1,980 advance from a client for job to be performed in September 2018.|
|22||Hired a secretary to be paid $2,055 on the 20th of each month. The secretary began work immediately.|
|23||Performed service for a client & received cash of $4,400|
|24||Paid for supplies purchased on July 4th|
|28||Received $1,197.90 on account.|
- Kargil P/L is registered for GST.
- Depreciation on office equipment & furniture is calculated using straight line depreciation. The residual value of computers is nil. The residual value of furniture is $100 (excl GST).
- Petty cash is reimbursed on the last day of each month.
- Supplies inventory on hand at the end of the month was $370.
- Journalise the transactions from 1-28 July as shown in the table above. (Marks: 20)
- Prepare a worksheet showing unadjusted trial balance. (Marks: 7)
- Use the worksheet to prepare adjusted trial balance. Clearly show the adjustments, if any, directly on the worksheet. (Marks: 18)
- Prepare T accounts for Service Revenue, GST Clearing & Cash. (Marks :5)
- Prepare income statement for the month of July 2018 based on c) above. (Marks: 5)
- Prepare statement of changes in Retained Earnings. (Marks: 3)
- Prepare balance sheet as at 31/7/2018. (Marks:7)
Note: Show your calculations clearly where applicable.
Brisbane Ltd. has the following balances at the end of June 2018:
|Unearned Service Revenue||5,100|
|Long Term Loan Payable||4,400|
- Prepare classified balance sheet for Brisbane Ltd. as at 30.6.18.
- Journalise any required closing entries for the company.
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