You are the accountant for ABC Ltd which is a manufacturer and wholesaler of furniture. By the end of May 2021, you have recorded amounts for the company accounts (see Table 1): Table 1 Account balances at 31/05/2021 Items Amount $ Accounts payable 7,000 Cash 50,000 Supplies 1,500 Inventory 65,000 Machine 65,000 Accounts receivable 30,000 Accumulated depreciation 5,000 Short-term Loan (payable in August 2021) 10,000 Unearned revenue 1,200 Following events happened in June 2021: 1 June The company purchased plywood for $4,000 from its supplier TX Ltd for production of the furniture, on credit. 2 June The company purchased $500 packaging supplies on credit. 5 June The company purchased a machine for $5,000 cash. 7 June A staff member, Rebecca, is retiring in 3 weeks’ time. The company decided not to recruit a new person to replace Rebecca. As a result, the business will save $70,000 per year. 13 June The company paid staff wages $28,000. 15 June Sold furniture items on credit to JC Ltd, issuing invoice of $35,000. Cost of these items is $20,000. 17 June Cash sales of furniture items for $8,000 were made. Cost of these items is $6,000. 25 June A customer pre-paid $3,000 to order a customized dining table. 27 June ABC Ltd is facing a lawsuit for injury caused to a customer from using furniture produced by the business. The customer claims that the furniture maker was negligent in manufacturing the furniture which did not meet industry standards. ABC Ltd is estimating $100,000 to be paid in legal expenses and fines if it loses the case. 28 June 50% of the amount owing from credit sales from last month was collected. 29 June Negotiated with James and Nathan for possible employment contracts totalling $25,000. 30 June Paid supplier, TX Ltd, for transaction on 1st June. Name and ID REQUIRED: Prepare a Balance Sheet for ABC Ltd.
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You are the accountant for ABC Ltd which is a manufacturer and wholesaler of furniture. By the end of May 2021, you have recorded amounts for the company accounts (see Table 1): Table 1 Account balances at 31/05/2021
Following events happened in June 2021:
Name and ID
Prepare a
Balance Sheet as at 30 June 2021
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