FINANCIAL ACCOUNTING PRACTICE (BBAC301)
The ledger of Daniel Penny, Financial consultant, contains the following account balances on 30th June 2015 and additional information for adjusting accounts. You are required to:
• Prepare a 10-column worksheet for the year ended 30 June 2015. Prepare the income statement, balance sheet and statement of change in equity.
Journalise the closing entries.
Account Debit ($) Credit ($)
Cash at Bank 42,000
Prepaid rent 10,000
Accounts receivable 92,600
GST Receivable 9,200
Office Supplies 11,400
Land 600,000
Building 1,520,000
Accumulated depreciation- Building 640,000
Office Equipment 234,000
Accumulated depreciation – Office equipment 64,200
Accounts Payable 79,600
Unearned consulting fees 15,600
GST Payable 20,000
Mortgage payable 886,000
D. penny, Capital 714,900
D.penny, Drawings 527,800
Consulting fees revenue 1,568,600
Insurance expense 16,600
Salaries expense 879,400
Electricity Expense 7,600
Interest expense 20,900
Telecommunication expense 17,400
The following information is also available:
• The rent was paid in advance for 12 months on 1st April 2015
• The physical count of office supplies reveals that supplies totalling $4,200 are on hand at 30th June.
• The balance in the unearned consulting fees account includes $ 12,000 earned for services rendered in the last week of June.
• Estimated depreciation on the office equipment is $21,400. Depreciation on the building is $87,600
• A 12-month insurance policy was purchased on 1 April for $7,800 plus GST.
• The June monthly mortgage payment of $9,000 has not been paid or recorded. In each payment, $2,200 is attributable to interest.
• The June telecommunications costs for $3,200 are unrecorded. No tax invoice has been received.
• Salaries of $9,800 were owing to employees at 30 June 2015.
• Office expenses of $2,000 incurred but not paid until 30 June 2015.
• At the end of the year consultation services of $150,000 were provided but Daniel did not receive any cash for this yet.