Question 2 Henri Macon is a Juice merchant trading from a single shop. Here is his trial balance as at 30 September 2019. Trial balance for Henri Macon as at 30 September 2019 Debit Capital Drawings 2. 3. Bank loan Cash at bank Equipment at cost Accumulated depreciation- Equipment Fixtures at cost Accumulated depreciation- Fixtures Receivables Allowance for receivables Payables Inventory (as at 1 October 2018) Sales Purchases Insurance 4. Rent Loan interest Miscellaneous expenses 32,000 70,600 10,000 70,000 186,000 72,000 Credit £ 38,600 100,000 4,750 640,000 3,600 20,000 15,000 15,400 Total 1,134,600 1,134,600 Additional information is provided for use in preparing the company's adjustments: 1. The value of closing inventory is £136,000. There is an accrual for rent of £4,000. 33,250 4,000 210,000 744,000 There is a prepayment of insurance of £400. Office equipment has a useful life of four years and a residual value of £500. It is to be depreciated on a straight-line basis. 5. Fixtures are to be depreciated on the reducing balance basis at a rate of 20 per cent. 6. The Majestic Hotel is one of Henri's best customers. It has just been declared bankrup hotel owes Henri £26,000. 7. The allowance for receivables is to be set at ten per cent of outstanding receivables a September 2019. BL quired: 1. Make the end-of-period adjustments entries 2. Prepare Henri's income statement for the year ended September 30, 2019. 3. Prepare Henri's balance sheet as at September 30, 2019.
Question 2 Henri Macon is a Juice merchant trading from a single shop. Here is his trial balance as at 30 September 2019. Trial balance for Henri Macon as at 30 September 2019 Debit Capital Drawings 2. 3. Bank loan Cash at bank Equipment at cost Accumulated depreciation- Equipment Fixtures at cost Accumulated depreciation- Fixtures Receivables Allowance for receivables Payables Inventory (as at 1 October 2018) Sales Purchases Insurance 4. Rent Loan interest Miscellaneous expenses 32,000 70,600 10,000 70,000 186,000 72,000 Credit £ 38,600 100,000 4,750 640,000 3,600 20,000 15,000 15,400 Total 1,134,600 1,134,600 Additional information is provided for use in preparing the company's adjustments: 1. The value of closing inventory is £136,000. There is an accrual for rent of £4,000. 33,250 4,000 210,000 744,000 There is a prepayment of insurance of £400. Office equipment has a useful life of four years and a residual value of £500. It is to be depreciated on a straight-line basis. 5. Fixtures are to be depreciated on the reducing balance basis at a rate of 20 per cent. 6. The Majestic Hotel is one of Henri's best customers. It has just been declared bankrup hotel owes Henri £26,000. 7. The allowance for receivables is to be set at ten per cent of outstanding receivables a September 2019. BL quired: 1. Make the end-of-period adjustments entries 2. Prepare Henri's income statement for the year ended September 30, 2019. 3. Prepare Henri's balance sheet as at September 30, 2019.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question 2
Henri Macon is a Juice merchant trading from a single shop. Here is his trial balance as at 30
September 2019.
Trial balance for Henri Macon as at 30 September 2019
Capital
Drawings
Bank loan
Cash at bank
Equipment at cost
Accumulated depreciation- Equipment
Fixtures at cost
Accumulated depreciation- Fixtures
Receivables
Allowance for receivables
Payables
Inventory (as at 1 October 2018)
Sales
Purchases
Insurance
Rent
Loan interest
Miscellaneous expenses
Debit
£
32,000
70,600
10,000
70,000
186,000
72,000
640,000
3,600
20,000
15,000
15,400
1,134,600
Credit
£
38,600
100,000
4,750
33,250
4,000
210,000
744,000
B124
Total
1,134,600
Additional information is provided for use in preparing the company's adjustments:
1. The value of closing inventory is £136,000.
2. There is an accrual for rent of £4,000.
3. There is a prepayment of insurance of £400.
4. Office equipment has a useful life of four years and a residual value of £500. It is to be
depreciated on a straight-line basis.
5. Fixtures are to be depreciated on the reducing balance basis at a rate of 20 per cent.
6. The Majestic Hotel is one of Henri's best customers. It has just been declared bankrupt. The
hotel owes Henri £26,000.
7. The allowance for receivables is to be set at ten per cent of outstanding receivables as at 30
September 2019.
Required:
1. Make the end-of-period adjustments entries
2. Prepare Henri's income statement for the year ended September 30, 2019.
3. Prepare Henri's balance sheet as at September 30, 2019.
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