Transform the raw data into an ordered trial balance. Then pass adjusting entries in pure journal form, Then make working notes, then make adjusted trial balance, then the income statement and balance sheet. 28.8 The following trial balance was extracted from the books of R Giggs at the close of businesson 28 February 20X7.DrCrf92,8004,100Purchases and sales157,165Cash at bankCash in handCapital account 1 March 20X6DrawingsOffice furniture32411,40017,1002,9003,40031,400RentWages and salariesDiscountsDebtors and creditors82016012,3164,1205,245Stock 1 March 20x6Provision for doubtful debts 1 March 20X6Delivery vanVan running costsBad debts written off4053,750615730174,375174,375Notes:(a) Stock 28 February 20X7 £2,400.(b) Wages and salaries accrued at 28 February 20X7 £340.(c) Rent prepaid at 28 February 20X7 £230.(d) Van running costs owing at 28 February 20X7 £72.(e) Increase the provision for doubtful debts by £91.(f) Provide for depreciation as follows: Office furniture £380; Delivery van £1,250.Required:Draw up the trading and profit and loss account for the year ending 28 February 20X7 togetherwith a balance sheet as on 28 February 20X7.

Adjusting entries are those entries which are passed at the end of the period in order to reflect…

Answered: ransform the raw data into an ordered…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Transform the raw data into an ordered trial balance. Then pass adjusting entries in pure journal form, Then make working notes, then make adjusted trial balance, then the income statement and balance sheet.

28.8 The following trial balance was extracted from the books of R Giggs at the close of business
on 28 February 20X7.
Dr
Cr
f
92,800
4,100
Purchases and sales
157,165
Cash at bank
Cash in hand
Capital account 1 March 20X6
Drawings
Office furniture
324
11,400
17,100
2,900
3,400
31,400
Rent
Wages and salaries
Discounts
Debtors and creditors
820
160
12,316
4,120
5,245
Stock 1 March 20x6
Provision for doubtful debts 1 March 20X6
Delivery van
Van running costs
Bad debts written off
405
3,750
615
730
174,375
174,375
Notes:
(a) Stock 28 February 20X7 £2,400.
(b) Wages and salaries accrued at 28 February 20X7 £340.
(c) Rent prepaid at 28 February 20X7 £230.
(d) Van running costs owing at 28 February 20X7 £72.
(e) Increase the provision for doubtful debts by £91.
(f) Provide for depreciation as follows: Office furniture £380; Delivery van £1,250.
Required:
Draw up the trading and profit and loss account for the year ending 28 February 20X7 together
with a balance sheet as on 28 February 20X7.

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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