Part B ( 7 marks) (Note this question IS related to Part A) SuperElectronics Limited Adjusted Trial Balance As at 30 June 2020 Debit Credit $ $ Cash 87,000 Accounts receivable 89,000 Allowance for Doubtful debts 4,300 Supplies 4,000 Plant & Equipment 218,000 Accumulated depreciation 64,000 Accounts Payable 38,000 Wages Payable 11,500 Loan payable ( not due until 2025) 50,000 Share capital 100,000 Retained Earnings 105,250 Dividends paid 10,000 Sales Revenue 368,000 Interest revenue 1,120 Doubtful debts expense 2,460 Depreciation expense 19,680 Rent & utilities expense 19,230 Wages and Salaries expense 281,000 Advertising expense 9,300 Interest expense 2,500 Totals 742,170 742,170 Required Prepare the Statement of Financial Position ( Balance Sheet) as at 30 June 2020. Classify assets and liabilities into current and non-current. (7 marks) (Hint- use the Retained Earnings Balance you calculated in Part A of this question)
Depreciation Methods
The word "depreciation" is defined as an accounting method wherein the cost of tangible assets is spread over its useful life and it usually denotes how much of the assets value has been used up. The depreciation is usually considered as an operating expense. The main reason behind depreciation includes wear and tear of the assets, obsolescence etc.
Depreciation Accounting
In terms of accounting, with the passage of time the value of a fixed asset (like machinery, plants, furniture etc.) goes down over a specific period of time is known as depreciation. Now, the question comes in your mind, why the value of the fixed asset reduces over time.
Part B ( 7 marks)
(Note this question IS related to Part A)
|
SuperElectronics Limited Adjusted As at 30 June 2020 |
||
|
|
Debit |
Credit |
|
|
$ |
$ |
|
Cash |
87,000 |
|
|
|
89,000 |
|
|
Allowance for Doubtful debts |
|
4,300 |
|
Supplies |
4,000 |
|
|
Plant & Equipment |
218,000 |
|
|
|
|
64,000 |
|
Accounts Payable |
|
38,000 |
|
Wages Payable |
|
11,500 |
|
Loan payable ( not due until 2025) |
|
50,000 |
|
Share capital |
|
100,000 |
|
|
|
105,250 |
|
Dividends paid |
10,000 |
|
|
Sales Revenue |
|
368,000 |
|
Interest revenue |
|
1,120 |
|
Doubtful debts expense |
2,460 |
|
|
Depreciation expense |
19,680 |
|
|
Rent & utilities expense |
19,230 |
|
|
Wages and Salaries expense |
281,000 |
|
|
Advertising expense |
9,300 |
|
|
Interest expense |
2,500 |
|
|
Totals |
742,170 |
742,170 |
Required
Prepare the
(Hint- use the Retained Earnings Balance you calculated in Part A of this question)
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