“Great Explorations” is a shop which sells hiking gear, including backpacks, hiking shoes and tents. It is owned and run by Nellie Bly. The following trial balance has been prepared at year end:
TRIAL BALANCE AS AT 30 JUNE 2020
|Debit ($)||Credit ($)|
|Cash on Hand||12,500|
|Inventory (30 June 2020)||32,500|
|Prepaid Shop Rent||24,000|
|Accum. Depreciation Shop Shelving||40,000|
|N. Bly, Capital (1 July 2019)||141,700|
|N. Bly, Drawings||12,500|
|Sales Returns & Allowances||1,200|
|Cost of Sales||128,000|
|Sales Staff Salaries Expense||42,000|
|Council Rates Expense||1,300|
|Administrative Salaries Expense||28,000|
|Sundry Administration Expense||1,800|
The following additional information is also provided for the year ended 30 June 2020:
- A physical stocktake of inventory as at 30 June 2020 revealed $31,000 on hand.
- Nellie has estimated that 6% of the 30 June 2020 balance of Accounts Receivable will never be collected from the customers.
- Sales staff salaries of $6,200 are still owed and have not been paid as at balance date.
- A tent with a sale price of $793 was delivered to a customer on 28 July 2020. The sale of this tent was recorded in the Sales account on the 28th June.
- The Shop Shelving is expected to have a useful life of five years and will then be sold for an estimated amount of $10 000.
- The Prepaid shop rent has been paid four months in advance and covers the rent until 31 July 2020.
- Nellie bought herself a pair of awesome Doc Marten boots from a local Op Shop for $45. She paid for the purchase using her personal bank account.
- $250 of the recorded sales represents cash received in advance from a customer on 16 June 2020 for a large pack of dehydrated meals for a 3 week hiking trip. The food pack will not be delivered to the customer until 10 July 2020.
- The council rates bill of $1 850 for the quarter ending the 30 June 2020 was received in the mail on 27 June 2020. The bill has not yet been recorded or paid.
- Based on the information provided above, record any necessary adjusting journal entries.
- Complete the Sales Staff Salaries Expense ledger provided below only.
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 firstname.lastname@example.org with your version of question.