Task: You are employed to Peter Pan Ltd a company owned by Peter Pantry, a merchandiser involved in the business of selling baking utensils and equipment. On January 1st, 2018 you were appointed to the position of Chief Financial Officer which made you responsible for the maintenance of the company’s accounting records, internal control and preparation of the financial statements. The following trial balance was extracted from the books of Peter Pan Ltd, at June 30, the end of the company’s fiscal year.   Peter Pan Ltd   Trial Balance as at June 30, 2018   A/C Name DR $ CR $ Cash 440,000   Accounts Receivable 530,000   Allowance for Bad Debts   40,000 Merchandise Inventory 320,000   Store Supplies 10,000   Prepaid Rent 280,000   Furniture and Equipment 600,000   Accumulated Depreciation -Furniture and Equipment   120,000 Accounts Payable   145,000 Wages Payable     Notes Payable, Long-Term   510,000 Unearned Sales Revenue   260,000 Peter Pantry, Capital   1,900,000 Peter Pantry, Withdrawal 75,000   Sales Revenue Earned   1,095,000 Cost of Goods Sold 645,000   Wages Expense 525,000   Rent Expense 210,000   Utilities Expense 230,000   Depreciation Expense -Furniture and Equipment     Store Supplies Expense 160,000   Bad debt Expense     Interest Expense 45,000   Total 4,070,000 4,070,000 The following additional information is available at June 30, 2018:     Eight (8) months’ rent amounting to $280,000 was PAID IN ADVANCE on January 1, 2018   ACCT1002 – Introduction to Financial Accounting Final Assignment    Page | 3   The Furniture and equipment is being depreciated over 10 years on the double-declining balance method of depreciation, down to a residue of $80,000.       Wages earned by employees NOT yet paid amounted to $35,000 at June 30, 2018.       A physical count of inventory at June 30, 2018, reveals $290,000 worth of inventory on hand.       On January 1, 2018 the company received $260,000 IN ADVANCE for sales to be provided evenly from January 1, 2018, through October 31, 2018. None of the revenue from this client has been recorded.       The aging of the Accounts Receivable schedule at June 30, 2018 indicated that the Allowance for Bad-Debts should be $65,000.   Required:     Prepare the necessary adjusting journal entries on June 30, 2018. [Narrations are not required]       Prepare the company’s multiple-step income statement for the year ended June 30, 2018.       Prepare the company’s statement of owner’s equity for the year ended June 30, 2018.   d) Prepare the company’s classified balance sheet as at June 30, 2018.

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Task: You are employed to Peter Pan Ltd a company owned by Peter Pantry, a merchandiser involved in the business of selling baking utensils and equipment. On January 1st, 2018 you were appointed to the position of Chief Financial Officer which made you responsible for the maintenance of the company’s accounting records, internal control and preparation of the financial statements. The following trial balance was extracted from the books of Peter Pan Ltd, at June 30, the end of the company’s fiscal year.

 

Peter Pan Ltd

 

Trial Balance as at June 30, 2018

 

A/C Name

DR $

CR $

Cash

440,000

 

Accounts Receivable

530,000

 

Allowance for Bad Debts

 

40,000

Merchandise Inventory

320,000

 

Store Supplies

10,000

 

Prepaid Rent

280,000

 

Furniture and Equipment

600,000

 

Accumulated Depreciation -Furniture and Equipment

 

120,000

Accounts Payable

 

145,000

Wages Payable

   

Notes Payable, Long-Term

 

510,000

Unearned Sales Revenue

 

260,000

Peter Pantry, Capital

 

1,900,000

Peter Pantry, Withdrawal

75,000

 

Sales Revenue Earned

 

1,095,000

Cost of Goods Sold

645,000

 

Wages Expense

525,000

 

Rent Expense

210,000

 

Utilities Expense

230,000

 

Depreciation Expense -Furniture and Equipment

   

Store Supplies Expense

160,000

 

Bad debt Expense

   

Interest Expense

45,000

 

Total

4,070,000

4,070,000




The following additional information is available at June 30, 2018:

 

 

  • Eight (8) months’ rent amounting to $280,000 was PAID IN ADVANCE on January 1, 2018

 





ACCT1002 – Introduction to Financial Accounting Final Assignment    Page | 3




 

  • The Furniture and equipment is being depreciated over 10 years on the double-declining balance method of depreciation, down to a residue of $80,000.

 

 

 

  • Wages earned by employees NOT yet paid amounted to $35,000 at June 30, 2018.

 

 

 

  • A physical count of inventory at June 30, 2018, reveals $290,000 worth of inventory on hand.

 

 

 

  • On January 1, 2018 the company received $260,000 IN ADVANCE for sales to be provided evenly from January 1, 2018, through October 31, 2018. None of the revenue from this client has been recorded.

 

 

 

  • The aging of the Accounts Receivable schedule at June 30, 2018 indicated that the Allowance for Bad-Debts should be $65,000.

 



Required:

 

 

  • Prepare the necessary adjusting journal entries on June 30, 2018. [Narrations are not required]

 

 

 

  • Prepare the company’s multiple-step income statement for the year ended June 30, 2018.

 

 

 

  • Prepare the company’s statement of owner’s equity for the year ended June 30, 2018.

 

  1. d) Prepare the company’s classified balance sheet as at June 30, 2018. 
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