CHARLES DARWIN …UNIVERSITY
Part A: 1 Question Question 1 (80 Marks)
|Balance Sheet as at 1 July 2015|
|Current Assets||Current Liabilities|
|Accounts Receivable||27800||Accrues salaries||7100|
|Inventory||17500||Total current liabilities||35700|
|Total Current Assets||95200||Non-current liabilities|
|Long term loan||75000|
|Plant and Equipment||275000||Shareholder’s equity|
|Accumulated depreciation||-65000||Share capital||150000|
|Total non-current assets||230000||Total shareholder’s equity||214500|
|Total Assets||325200||Total Liabilities and
The following transactions occurred for McDonalds Ltd for the year ending 30 June 2016:
- Issued additional share capital for $5000 cash
- Received $26 800 from accounts receivable
- Paid accrued salaries owing
- Purchased $62 000 inventory for cash
- Paid $16 900 to accounts payable
- Borrowed $70 000 on 1 January at 10% interest p.a. on 30 June interest on the loan was still outstanding.
- Purchased $39 000 inventory on credit
- Sold inventory costing $31 200 for $82 000 cash
- Sold inventory on credit for $153 000. Cost of inventory sold was $63 400
- On 2 March paid $31 200 rent for the next 12 months
- Dividends declared and paid totalled $5000
- Paid wages expense of $35 000; on 30 June 2016 wages of $9100 had been earned but not paid
- Interest receivable on investment is $1500
- Depreciation on plant and equipment is calculated using straight line method at 20% p.a.
- O. Received $4000 in June for services to be provided in July
- Paid administration expenses $12 200
a. Prepare journal entries for the above transactions (35 Marks)
b. Prepare ledgers (20 Marks)
c. Prepare closing entries ( 5 Marks)
d. Prepare a 10-cloumn worksheet (10 Marks)
e. Prepare an Income Statement for the year ending 30 June 2016 and Balance Sheet as
at 30 June 2016 for McDonalds Ltd.(10 Marks)
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