Question 1 The following account balances are provided for Holland Pty Ltd at 30 June 2020. Revenue and expense accounts cover the financial year ending on that date. Accounts payable 20,000 Loan payable—long term 110,000 Accounts receivable 48,600 Office Equipment 14,000 Accumulated depreciation—office equipment 2,000 Office expenses 15,200 Advertisement expense 7,800 Prepaid insurance 1,400 Cash at bank 50,000 Retained earnings (beginning of year) 15,800 Cost of sales 64,000 Salaries expense 28,000 Depreciation expense 2,000 Sales revenue 120,000 Inventory 40,000 Share Capital 76,400 Land 75,000 Unearned service revenue 1,800 a) Prepare the Income Statement for Holland Pty Ltd for the year ended 30 June 2020. Holland Pty Ltd Income Statement for the year ended 30 June $ $ b) Prepare a complete classified Balance Sheet using the narrative (report) format at 30 June 2020. Balance Sheet of Holland Pty Ltd at 30 June 2020
Question 1
The following account balances are provided for Holland Pty Ltd at 30 June 2020. Revenue and expense accounts cover the financial year ending on that date.
|
Accounts payable |
20,000 |
Loan payable—long term |
110,000 |
|
|
48,600 |
Office Equipment |
14,000 |
|
Accumulated |
2,000 |
Office expenses |
15,200 |
|
Advertisement expense |
7,800 |
Prepaid insurance |
1,400 |
|
Cash at bank |
50,000 |
|
15,800 |
|
Cost of sales |
64,000 |
Salaries expense |
28,000 |
|
Depreciation expense |
2,000 |
Sales revenue |
120,000 |
|
Inventory |
40,000 |
Share Capital |
76,400 |
|
Land |
75,000 |
Unearned service revenue |
1,800 |
a) Prepare the Income Statement for Holland Pty Ltd for the year ended 30 June 2020.
Holland Pty Ltd
Income Statement for the year ended 30 June
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b) Prepare a complete classified Balance Sheet using the narrative (report) format at 30 June 2020.
Balance Sheet of Holland Pty Ltd
at 30 June 2020
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