Final Assesment

Question 6 – Worksheet and Financial StatementsTransactions for the year ending 30 June 20211. 

Transactions for the year ending 30 June 2021

1. Credit Purchases of inventory $27,500
2. Cash Sales $25,000
3. Credit Sales $32,500
4. Paid Accounts Payable $12,500
5. Paid wages $10,000, wages owing at 30 June 2021 $1,500
6. $6,500 in rent was paid during the year. Rent is charged at $500 per month
7. Collection from Accounts Receivable $15,000
8. Interest paid on the Loan $750
9. Insurance expense incurred but not yet recorded $2,500
10. The company paid a subscription of $3,000 relating to the period 1 April 2021 to 31 January 2022
11. The Directors agreed to a wages bonus of $10,000 for good performance this year. It was announced to staff in June but had not been paid as at 30 June 2021
12. Electricity of $2,000 for the period March 2021 to June 2021 not paid
13. Depreciation of Furniture & Fittings 10% of cost
14. Bad debts written off using the direct method $1,500
15. Dividends paid at 30 June 2021 of $2,000
16. Stock at end of June 2020 $22,500

Note:

Accounts Payable are used for inventory purchases only

6a) Complete the attached spreadsheet containing the Worksheet, Income Statement for the year ending 30 June 2021 and Balance Sheet as at 30 June 2021, and then upload it below.