Financial Accounting Practice
Transactions completed during the year ended 30 June 2013 for Johnson & Co are summarised as follows:
Johnson & Co
Trial Balance
As at 30 June, 2013
|
Account
|
Account no
|
Debit ($)
|
Credit ($)
|
|
Cash at bank
|
1100
|
9240
|
|
|
Accounts receivable
|
1101
|
5900
|
|
|
Prepaid rent
|
1102
|
760
|
|
|
GST outlays
|
1105
|
1400
|
|
|
Office supplies
|
1106
|
820
|
|
|
Furniture and equipment
|
1110
|
17950
|
|
|
Accum Dep-furniture & equip
|
1111
|
|
6080
|
|
Accounts payable
|
2200
|
|
3400
|
|
Salaries payables
|
2201
|
|
260
|
|
GST collections
|
2203
|
|
3200
|
|
Johnson, capital
|
3000
|
|
23 130
|
|
|
|
$36070
|
$36070
|
Transactions completed during the year ended 30 June 2014 are summarised below (ignore GST):
- Consulting fees of $55 720 were receivable during the year. Clients are invoiced after services are provided and are given 30 days in which to pay.
- Rent paid in advance was $9120
- Office supplies were purchased during the year for 240 in cash & 260 on credit
- Johnson withdrew $16000 for private use
- Salary payments amounted to $19 960, of which $260 was for salaries accrued to the end of the year ending 30 June 2011
- Electricity expense of $2250 was paid
- Accounts payable of $1800 were paid
- Collections on accounts receivable totalled $51 820
The following additional information should be considered for adjusting entries:
- Unused office supplies on hand at the end of the year totalled $400
- Depreciation on the furniture and equipment is $2000
- Salaries are not paid and recorded amount to $700
- Rent paid in advance in transaction 3. Rent for 6 months of $4560 was paid in advance on 1 August and 1 February.
- Interest earned but not yet received $240.
- Electricity expense was outstanding $240
Required:
I) Prepare journal entries to record the transactions (1-8) completed in the year to 30 June, 2014 Marks 4
II) Post the entries to Accounts Marks 2
III) Prepare and post the adjusting entries Marks 3
IV) Prepare a 10-column worksheet for the year ended 30th June, 2014 Marks 5
V) Prepare an Income Statement, a statement of changes in Owners’ Equity and a balance-
sheet for the year ended 30th June, 2014 Marks 4
VI) Prepare the closing entries Marks 1
VII) Comment on the performance of the business based on their financial statements (600 words). Marks 6
Financial Accounting Practice
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