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Comeplete an income statement based on the following information

Comeplete an income statement based on the following information

Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter3: Review Of A Company's Accounting System
Section: Chapter Questions
Problem 10P: Worksheet Victoria Company has the following account balances on December 31, 2019, prior to any...
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Comeplete an income statement based on the following information

Adjusted Trial Balance "For the Month Ending 31/8/2021" Acc. No. Account Dr Cr 201 Accounts Payable 6,330 Accounts receivable Accum. Depreciation - Motor Vehicle |Accum. Depreciation - Office Furniture Advertising Expense 102 27,218 159 17,500 156 6,240 610 4,250 251 Bank Loan 33,990 301 Capital 182,930 Cash Computer Expense Consulting Expense Consulting Fees Payable 101 176,234 601 896 604 6,088 244 3,044 501 Cost of Good Sold 46,435 Depreciation Expense - Motor Vehicle Depreciation Expense - Office Furniture Drawings GST Collected 651 700 655 4B0 302 4,780 222 21,216 111 GST Paid 9,281 605 Insurance Expense 990 Interest Due Interest Expense Interest Receivable Interest Revenue Inventory Motor Vehicle Office Furniture 104 Office Supplies Office Supplies Expense PAYG Withheld Prepaid Insurance Prepaid Rent Rent Expense Sales Commission Expense 240 2,806 603 2,806 143 5,362 403 5,362 103 42,198 158 84,000 155 23,040 16,792 602 40 261 6,781 141 7,920 142 14,560 606 1,820 607 4,643 401 Sales Revenue 1,803,234 Service Revenue Unearned Revenue Utilities Expense Utilities Payable Wage Expense Wages Payable TOTAL 402 28,998 241 7,740 608 6.100 243 2,033 609 34,330 242 15,669 520,963 2,143,873 Relevant information: 1. Adjusting Items: Date Description 31/8/21 The motor vehicle is depreciated using the straight line method. It has a useful life of 10 years and a zero residual value. The business has 7 sales staff. Each sales staff member's GROSS wage is $2100 per fortnight [PAYG withheld of $378). At the end of 31/8/21 the month, the business owed its sales staff 1 week worth of wages and that is yet to be recorded. Received $28380 (including GST) from a customer at the start of August 2021 for provision of some advanced cleaning services. At the time, the amount was recorded as unearned revenue and GST collected. The business managed to deliver these services by the end of August 2021. 31/8/21 On August 1, 2021 the business deposited $19200 into a fixed deposit at ABC Bank. The interest offered was at 8% per annum and paid quarterly. The interest on the $19200 fixed deposit acrrued by the end of the month is yet to be recorded. 31/8/21 On August 1, 2021 the business paid $18018 (including GST) for 9 months of office rent. This was recorded at the time as Prepaid Rent 31/8/21 and GST Paid. On August 11, 2021 the business purchased 15 packs of markers worth $660 (including GST) which were recorded as Office Supplies and GST Paid. Heracles counted the markers at the end of August 2021 and found that 1 packs of these markers have been consumed but their consumption has not been recorded. 31/8/21 The office furniture is depreciated using the straight line method. It depreciates at 25% per annum and is assumed to have a zero residual value. 31/8/21 The business hires 5 general office assistants. Each assistant is paid a NET wages of $748 per week [PAYG withheld of $120]. At the 31/8/21 end of the month, the business owed its office assistants 2 weeks of wages and that is yet to be recorded. On August 1, 2021 the business paid $9801 (including GST) for 9 months of business insurance. This was recorded at the time as Prepaid Insurance and GST Paid. 31/8/21
Transcribed Image Text:Adjusted Trial Balance "For the Month Ending 31/8/2021" Acc. No. Account Dr Cr 201 Accounts Payable 6,330 Accounts receivable Accum. Depreciation - Motor Vehicle |Accum. Depreciation - Office Furniture Advertising Expense 102 27,218 159 17,500 156 6,240 610 4,250 251 Bank Loan 33,990 301 Capital 182,930 Cash Computer Expense Consulting Expense Consulting Fees Payable 101 176,234 601 896 604 6,088 244 3,044 501 Cost of Good Sold 46,435 Depreciation Expense - Motor Vehicle Depreciation Expense - Office Furniture Drawings GST Collected 651 700 655 4B0 302 4,780 222 21,216 111 GST Paid 9,281 605 Insurance Expense 990 Interest Due Interest Expense Interest Receivable Interest Revenue Inventory Motor Vehicle Office Furniture 104 Office Supplies Office Supplies Expense PAYG Withheld Prepaid Insurance Prepaid Rent Rent Expense Sales Commission Expense 240 2,806 603 2,806 143 5,362 403 5,362 103 42,198 158 84,000 155 23,040 16,792 602 40 261 6,781 141 7,920 142 14,560 606 1,820 607 4,643 401 Sales Revenue 1,803,234 Service Revenue Unearned Revenue Utilities Expense Utilities Payable Wage Expense Wages Payable TOTAL 402 28,998 241 7,740 608 6.100 243 2,033 609 34,330 242 15,669 520,963 2,143,873 Relevant information: 1. Adjusting Items: Date Description 31/8/21 The motor vehicle is depreciated using the straight line method. It has a useful life of 10 years and a zero residual value. The business has 7 sales staff. Each sales staff member's GROSS wage is $2100 per fortnight [PAYG withheld of $378). At the end of 31/8/21 the month, the business owed its sales staff 1 week worth of wages and that is yet to be recorded. Received $28380 (including GST) from a customer at the start of August 2021 for provision of some advanced cleaning services. At the time, the amount was recorded as unearned revenue and GST collected. The business managed to deliver these services by the end of August 2021. 31/8/21 On August 1, 2021 the business deposited $19200 into a fixed deposit at ABC Bank. The interest offered was at 8% per annum and paid quarterly. The interest on the $19200 fixed deposit acrrued by the end of the month is yet to be recorded. 31/8/21 On August 1, 2021 the business paid $18018 (including GST) for 9 months of office rent. This was recorded at the time as Prepaid Rent 31/8/21 and GST Paid. On August 11, 2021 the business purchased 15 packs of markers worth $660 (including GST) which were recorded as Office Supplies and GST Paid. Heracles counted the markers at the end of August 2021 and found that 1 packs of these markers have been consumed but their consumption has not been recorded. 31/8/21 The office furniture is depreciated using the straight line method. It depreciates at 25% per annum and is assumed to have a zero residual value. 31/8/21 The business hires 5 general office assistants. Each assistant is paid a NET wages of $748 per week [PAYG withheld of $120]. At the 31/8/21 end of the month, the business owed its office assistants 2 weeks of wages and that is yet to be recorded. On August 1, 2021 the business paid $9801 (including GST) for 9 months of business insurance. This was recorded at the time as Prepaid Insurance and GST Paid. 31/8/21
Unadjusted Trial Balance "For the Month Ending 31/8/2021 Acc. No. Account Dr Cash Accounts receivable 101 176,234 102 27,218 103 Inventory Office Supplies 42,198 104 16,832 111 GST Paid 9281 Prepaid Insurance Prepaid Rent Interest Receivable Office Furniture Accum. Depreciation -Office Furniture Motor Vehicle 141 8,910 16,380 5234 142 143 155 23,040 156 5,760 158 84,000 Accum. Depreciation - Motor Vehicle Accounts Payable GST Collected Interest Due Uneamed Revenue Wages Payable Utilities Payable 159 16,800 201 222 6,330 18,378 2,806 240 241 36,120 242 1830 2,033 243 244 Consulting Fees Payable 3,044 33,990 Bank Loan PAYG Withheld Capital Drawings Sales Revenue Service Revenue Interest Revenue 251 261 4,590 301 182,930 302 4,780 154,782 28,998 401 402 403 5,234 501 Cost of Good Sold 46,435 896 Computer Expense Office Supplies Expense Interest Expense Consulting Expense 601 602 603 2,806 604 6,088 Insurance Expense Rent Expense Sales Commission Expense Utilities Expense Wage Expense Advertising Expense Depreciation Expense - Motor Vehicle Depreciation Expense - Office Fumiture TOTAL 605 606 607 4,643 608 6,100 609 18,300 610 4,250 651 655 503,625 503,625 The General Journal Date Accounts Dr Cr Depreciation Expense - Motor Vehicle Accum. Depreciation - Motor Vehicle 31/08/2021 700 700 31/08/2021 Wage Expense Wages Payable PAYG Withheld 7,350 6,027 1,323 31/08/2021 Unearned Revenue 28,380 Sales Revenue 25,542 GST Collected 2,838 31/08/2021 Interest Receivable 128 Interest Revenue 128 31/08/2021 Rent Expense 1,820 Prepaid Rent 1,820 31/08/2021 Office Supplies Expense 40 Office Supplies 40 Depreciation Expense - Office Furniture Accum. Depreciation - Office Furniture 31/08/2021 480 480 31/08/2021 Wage Expense Wages Payable PAYG Withheld 8,680 7,812 868 31/08/2021 Insurance Expense 990 Prepaid Insurance 990 ТОTAL 48,568 48,568
Transcribed Image Text:Unadjusted Trial Balance "For the Month Ending 31/8/2021 Acc. No. Account Dr Cash Accounts receivable 101 176,234 102 27,218 103 Inventory Office Supplies 42,198 104 16,832 111 GST Paid 9281 Prepaid Insurance Prepaid Rent Interest Receivable Office Furniture Accum. Depreciation -Office Furniture Motor Vehicle 141 8,910 16,380 5234 142 143 155 23,040 156 5,760 158 84,000 Accum. Depreciation - Motor Vehicle Accounts Payable GST Collected Interest Due Uneamed Revenue Wages Payable Utilities Payable 159 16,800 201 222 6,330 18,378 2,806 240 241 36,120 242 1830 2,033 243 244 Consulting Fees Payable 3,044 33,990 Bank Loan PAYG Withheld Capital Drawings Sales Revenue Service Revenue Interest Revenue 251 261 4,590 301 182,930 302 4,780 154,782 28,998 401 402 403 5,234 501 Cost of Good Sold 46,435 896 Computer Expense Office Supplies Expense Interest Expense Consulting Expense 601 602 603 2,806 604 6,088 Insurance Expense Rent Expense Sales Commission Expense Utilities Expense Wage Expense Advertising Expense Depreciation Expense - Motor Vehicle Depreciation Expense - Office Fumiture TOTAL 605 606 607 4,643 608 6,100 609 18,300 610 4,250 651 655 503,625 503,625 The General Journal Date Accounts Dr Cr Depreciation Expense - Motor Vehicle Accum. Depreciation - Motor Vehicle 31/08/2021 700 700 31/08/2021 Wage Expense Wages Payable PAYG Withheld 7,350 6,027 1,323 31/08/2021 Unearned Revenue 28,380 Sales Revenue 25,542 GST Collected 2,838 31/08/2021 Interest Receivable 128 Interest Revenue 128 31/08/2021 Rent Expense 1,820 Prepaid Rent 1,820 31/08/2021 Office Supplies Expense 40 Office Supplies 40 Depreciation Expense - Office Furniture Accum. Depreciation - Office Furniture 31/08/2021 480 480 31/08/2021 Wage Expense Wages Payable PAYG Withheld 8,680 7,812 868 31/08/2021 Insurance Expense 990 Prepaid Insurance 990 ТОTAL 48,568 48,568
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