pass paper question: You are employed to Peter Pan Ltd a company owned by Peter Pantry, a merchandiserinvolved in the business of selling baking utensils and equipment. On January 1st, 2018 you wereappointed to the position of Chief Financial Officer which made you responsible for themaintenance of the company’s accounting records, internal control and preparation of the financialstatements. The following trial balance was extracted from the books of Peter Pan Ltd, at June30, the end of the company’s fiscal year.Peter Pan LtdTrial Balance as at June 30, 2018 The following additional information is available at June 30, 2018:(i) Eight (8) months’ rent amounting to $280,000 was PAID IN ADVANCE on January1, 2018A/C Name DR $ CR $Cash 440,000 Accounts Receivable 530,000Allowance for Bad Debts 40,000 Merchandise Inventory 320,000Store Supplies 10,000 Prepaid Rent 280,000Furniture and Equipment 600,000Accumulated Depreciation -Furniture and Equipment 120,000 Accounts Payable 145,000Wages PayableNotes Payable, Long-Term 510,000Unearned Sales Revenue 260,000Peter Pantry, Capital 1,900,000 Peter Pantry, Withdrawal 75,000 Sales Revenue Earned 1,095,000Cost of Goods Sold 645,000 Wages Expense 525,000Rent Expense 210,000Utilities Expense 230,000Depreciation Expense -Furniture and EquipmentStore Supplies Expense 160,000Bad debt ExpenseInterest Expense 45,000 Total 4,070,000 4,070,000 ACCT1002 – Introduction to Financial Accounting Final Assignment Page | 4(ii) The Furniture and equipment is being depreciated over 10 years on the doubledeclining balance method of depreciation, down to a residue of $80,000.(iii) Wages earned by employees NOT yet paid amounted to $35,000 at June 30, 2018.(iv) A physical count of inventory at June 30, 2018, reveals $290,000 worth of inventoryon hand.(v) On January 1, 2018 the company received $260,000 IN ADVANCE for sales to beprovided evenly from January 1, 2018, through October 31, 2018. None of the revenuefrom this client has been recorded.(vi) The aging of the Accounts Receivable schedule at June 30, 2018 indicated that theAllowance for Bad-Debts should be $65,000.Required:a) Prepare the necessary adjusting journal entries on June 30, 2018. [Narrations are notrequired] b) Prepare the company’s multiple-step income statement for the year ended June 30, 2018.c) 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, 201 I NEED TO GET THIS FOR FINALS ON MONDAY.
The Effect Of Prepaid Taxes On Assets And Liabilities
Many businesses estimate tax liability and make payments throughout the year (often quarterly). When a company overestimates its tax liability, this results in the business paying a prepaid tax. Prepaid taxes will be reversed within one year but can result in prepaid assets and liabilities.
Final Accounts
Financial accounting is one of the branches of accounting in which the transactions arising in the business over a particular period are recorded.
Ledger Posting
A ledger is an account that provides information on all the transactions that have taken place during a particular period. It is also known as General Ledger. For example, your bank account statement is a general ledger that gives information about the amount paid/debited or received/ credited from your bank account over some time.
Trial Balance and Final Accounts
In accounting we start with recording transaction with journal entries then we make separate ledger account for each type of transaction. It is very necessary to check and verify that the transaction transferred to ledgers from the journal are accurately recorded or not. Trial balance helps in this. Trial balance helps to check the accuracy of posting the ledger accounts. It helps the accountant to assist in preparing final accounts. It also helps the accountant to check whether all the debits and credits of items are recorded and posted accurately. Like in a balance sheet debit and credit side should be equal, similarly in trial balance debit balance and credit balance should tally.
Adjustment Entries
At the end of every accounting period Adjustment Entries are made in order to adjust the accounts precisely replicate the expenses and revenue of the current period. It is also known as end of period adjustment. It can also be referred as financial reporting that corrects the errors made previously in the accounting period. The basic characteristics of every adjustment entry is that it affects at least one real account and one nominal account.
pass paper question:
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
30, the end of the company’s fiscal year.
Peter Pan Ltd
Trial Balance as at June 30, 2018
The following additional information is available at June 30, 2018:
(i) Eight (8) months’ rent amounting to $280,000 was PAID IN ADVANCE on January
1, 2018
A/C Name DR $ CR $
Cash 440,000
Allowance for
Store Supplies 10,000 Prepaid Rent 280,000
Furniture and Equipment 600,000
Accumulated
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
ACCT1002 – Introduction to Financial Accounting Final Assignment Page | 4
(ii) The Furniture and equipment is being depreciated over 10 years on the doubledeclining balance method of depreciation, down to a residue of $80,000.
(iii) Wages earned by employees NOT yet paid amounted to $35,000 at June 30, 2018.
(iv) A physical count of inventory at June 30, 2018, reveals $290,000 worth of inventory
on hand.
(v) 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.
(vi) The aging of the Accounts Receivable schedule at June 30, 2018 indicated that the
Allowance for Bad-Debts should be $65,000.
Required:
a) Prepare the necessary
required]
b) Prepare the company’s multiple-step income statement for the year ended June 30, 2018.
c) Prepare the company’s statement of owner’s equity for the year ended June 30, 2018.
d) Prepare the company’s classified
I NEED TO GET THIS FOR FINALS ON MONDAY.
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