Question

Prepare a general ledger and Statement of Financial Position in vertical format for the June 2019...

Prepare a general ledger and Statement of Financial Position in vertical format for the June 2019 year.

Evergreen LTD is a new business which started trading on 1 January 2019. The following is

a summary of transactions which occurred during the first period of trading:

a.

The owners contributed $50,000 of capital

b.

A delivery vehicle, bought on 1 January for $12,000 is expected to be used in the

business for four years and then sold for $2,000.

c.

Wages totalling $30,000 were paid during the year. At the end of the year, the

business owed $1,000 of wages for the last week of the year.

d.

Inventory totalling $200,000 was bought on credit.

f.

Inventory totalling $40,000 was bought for cash.

g.

Sales on credit totalled $300,000 (cost $150,000).

h.

Cash sales totalled $70,000 (cost $2,000).

i.

Receipts from accounts receivable totalled $24,000.

j.

Payments to accounts payable totalled $22,000.

k.

Vehicle running expenses paid totalled $8,000.

l.

The company tax rate is 33%.

m.

The Statement of Financial Position should be in Vertical Format. The Statement of

Financial Performance should be unclassified and all expenses listed.

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Answer #1

Genaral Ludgr Jornal Cash Ale Capital Ale To Capital 5e00By Delivey vehica 12c0o To Bal cld Cash 50000 To Sales 70000 50000 3

Accounts Recewable Closing stock eypening stoclk (+Pua chases (Sales To Sales 3000o0 By Cash 24000 240000 By Bald 276000 1520

Stakement of Financial Pocition of 30 June 2019 as on LTD E VER GREEN quily f Linhilities Cwners capital Account Payabl 50,0

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