Assessment 4
Task 3
Accurate Steel Pty Ltd maintains inventory on a perpetual basis and advises you of the following:
The following adjustments are required to be completed for the year ended 30 June 2018
- Further Bad debt of $2,000 + GST $0 (exempt from GST) to be written off.
- Allowance (Provision) for doubtful debts to be increased to 5% of Accounts Receivable balance.
- Annual insurance premium of $3,600 (GST exclusive) was paid on February 1, 2018. Account for the amount that has been prepaid at 30 June 2018.
- Salaries and wages to be accrued at 30 June 2018 is $9,800
- Rental Income received in Advance $600
- Depreciation for the year (not recorded in the accounts) was
- Motor Vehicle $15,500
- Furniture and Fittings $4,500
Required
From the above information and the Trial Balance below:
- Prepare the necessary general journal entries for the above balance day adjustments (14 marks)
- Prepare a Classified Income Statement for the year ended 30 June 2018 (18 marks)
- Prepare a Classified Balance Sheet as at 30 June 2018 (18 marks)
Note – the Perpetual Inventory system is used.
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