Johnson's Party Hire hires out equipment and furniture for parties. The unadjusted trial balance of the business appears as shown below Account Cash at bank Accounts Receivable GST Outlays Prepaid Insurance Party Equipment Accumulated Equipment Party Equipment Furniture Accumulated Depreciation-Furniture Accounts Payable GST Collection Johnson, Capital Johnson, Drawings Hire Fees Revenue Salaries Expense Rent Expense Maintenance Expense Electricity Expense Additional Information: i. ii. iv. V. vi. vii. JOHNSON PARTY HIRE Unadjusted Trial Balance As at 30 June 2020 PILAG Debit 5,200 2,400 3,300 1,200 31,400 47,300 18,310 .End of assessment. 26,500 5,700 3,100 1,400 145,810 Credit 17,600 23,000 6,800 5,000 18,710 74,700 145,810 Expired insurance amounts to K850 June electricity costs of K300 have not been paid or recorded. No tax invoice has been received Depreciation on the party equipment is K7,850, and depreciation on the furniture is K9,420. Hire fees of K1,150 (plus GST of K115) were received in advance and were not considered to be revenue at balance date The rent expense account contains K1,320 paid for July 2020 rent. A hire fee of K264 received in cash (including K24 GST) was recorded by debiting Accounts Receivable Salaries earned amounting to K810 will be paid in July and have not been recorded Required: You were tasked as an accountant of this company to prepare the following: A. Set up T accounts for the accounts listed in the trial balance 1. Enter the account balances from the trial balance into the T accounts 2. Post the adjusting information directly to the T accounts B. Prepare an adjusted Trial Balance C. Prepare an income statement and a statement of changes in equity for the year ended 30 June 2020 D. Prepare a statement of financial position (Balance Sheet) as at 30 June 2020 6 6/7
Johnson's Party Hire hires out equipment and furniture for parties. The unadjusted
Step by step
Solved in 5 steps
