Question

You have been provided with the Unadjusted Trial Balance for Whiteley Ltd. as at June 30, 2019. The company uses the periodic system for inventory management. All sales revenue is recorded on credit, no cash sales are made by the company. There are four (4) parts to this question including PART A: General Journal entries, PART B: Classified Income Statement, PART C: Equity ledger account closing balance calculation and PART D: Classified Balance sheet. e WHITELEY LTD Unadjusted Trial Balance as at 30 June 2019 Account Debit Credit $960 000 260 000 72 000- 30 000 24 800+ 60 300- 450 000 36 000- 38 800 157 2002 115 400 Share capital (960 000 shares fully paid) General reserve Retained earnings Revaluation surplus Current tax liability Accounts payable Debentures Bank overdraft (current) Other liabilities (current) Land $480 000 Buildings 828 000 Accumulated depreciation - buildings Office equipment 192 000- Accumulated depreciation - office equip. Delivery vehicles 84 000 Accounts receivable 87 200 Allowance for Doubtful debts Inventory (1 July 2018) 288 000 Investments 190 000 Prepaid insurance 10 000 Sales Interest revenue Purchases 298 000 Sales returns and allowances 2 600 Purchases returns and allowances Freight inwards 12 900 Freight outwards 10 800- Wages expense 128 2002 Interest expense 12 250- Advertising expense 37 000 Income tax expense 24 800 Administrative expenses 120.750 $2 806 500 2 500 589 900 7 200 2 400- $2806 500 Required: Prepare General Journal entries, including narrations, to record the following transactions in the template provided. Whiteley Ltd transactions during 2019/2020:

Answer 1

Retained Earnings • Net Loss 47800 neneral Res. 1, 19,000 AIL Receivable 2016 Int. Payalle 12,150 Och on building 19,200 velices 15,00 Dep. on Delivery Rad belone Adj. 72000 Int Receivable Crusing Bal-aften Ay: 182,723 12000 4,900 Jep on fourniture Prepaid Insurans 7,000 Rad debts 2,937 266722

85164 382727 En effen Э 3 Current Assets Account Receivable Less: Allowance ( for Doubt Debts (5437 ) Inventory 2,89.000 Interest Recevable 12000 Prepaid 3000 insurance Toted current Assets 38 2727 Non Cunrad Asseto 190,000 Investment skoop Land 480,000 Beuildings 828,000 Accumwited Dch. (198600) (29400 vehicle 94000 Delivery Accomulated rep. (15200) 68800 142000 Genitenc legal (134600 57000 Accumalde Deb 14, 25,600 Total Non con U 14256oo 1803327 Total Assos Cunnent cial Accounts Payable Bout old 60300 26000 2100 50950 Assa CT Lide hat