Question

How do we do this?

You are the accountant for XYZ Ltd. By the end of 05/2020, you have recorded amounts for the company accounts as Table 1 below.

Table 1 Accounts at 31/05/2020

Items	Amount $
Accounts payable	6,000
Cash	40,000
Supplies	1,000
Inventory (fully assembled PCs)	60,000
Equipment	22,000
Accounts receivable from sales	24,000
Accumulated depreciation	4,000
Short-term Loan (payable in July 2020)	17,000
Unearned revenue	3,000

Following events happened in June.

1 June      The company purchased $4,000 packaging supplies for computer delivery package on credit.

2 June      The company recruited one apprentice whose monthly salary is 3,500.

5 June      The company purchased some computer assembly equipment for $3,000 cash.

10 June    A staff member, Eric, is retiring in 2 weeks’ time, because he won a significant lottery prize. The company decided not to recruit a new one to save $55,000 per year.

13 June    The company paid staff wages $24,000.

15 June    Credit sales of $35,000 were made. Cost of these computers is $20,000.

17 June    Cash sales $8,000 were made. Cost of these computers is $5,000.

25 June    A customer pre-paid $3,000 to order a customized computer.

27 June    The company was awarded as the “Best Computer Shop” by the local community.

28 June    50% of last month’s Sales on Credit was collected.

29 June    You have identified an error in the accumulated depreciation account and recalculated the amount for accumulated depreciation account. The correct amount by the end of June 2020 should be $3,000

30 June    One of your customers called in to notify you he would like to cancel the deal he is currently negotiating with you. This deal is worth $45,000.

Name and ID

REQUIRED:

Prepare a Balance Sheet for XYZ Ltd. Show all your calculations.

Balance Sheet as at 30 June 2020

Current Asset	$	Calculations
1.
2.
3.
4.
Non-Current Asset
5.
(Accumulated Depreciation)
Total Assets
Current Liabilities
6.
7.
8.
Total Liabilities
Net Assets
Owner’s Equity

Answer 1

Ans. Journal Entries for June Date particulars 1) Purchase Supplies All or 4000 DY 13. To Accounts Payable YDOO (2) Salaries AIL 07 35000 To cash All 3500 5) Equipment (computer Assembly) Ali Dr. 3.000 3 000 TO cash Al )A 10) No Entry- There is no transaction, entry for this 13) Wages ale On 24ood to cash All 24000 DY 35000 15) | Accounts Receivables Ale sales All To 3 sogo Ald or 20,990 cost of goods sold Т To Inventory All 20,000

80 Sooo 5000 3000 3000 12900 If the customer cancel the deal .17) Cash All Dr. To sales me Cost of goods sold all Do. 1 To Inventory ale 25 cash ALL DY To customer Receivables the €7) No Entry 28) (и Cash All DV TO Account Receivables All 29) Accumulated Delocciation All Dr. To Accumulated Depreciation on Assest disposed All 30) Ne Entry - which he is currently negotia. ting, No Entry will be recor- ded ( in the books of Account. Because cash weither paid nool 1200 | lege 1900 - Received by the company.

Accumulated Depreciation . All TO Accumulate Depreciation leoo By bal, old on Assest Disposed All чеео To Bal, cld 3000 Accounts payable Ak booo Buy Bal, old By supplies Yooo To al. eld POD Cash All To Bal. old 3100 40,000 By Salaries 8000 by Assembly equipment To sales 3000 24900 By wages Зоро To castomer Receivables To Account Receivables 32 500 12000 By Bal, eld 3Doo To Bal, bid Account Receivables All 24000 By Customer Recovables 13 soge ( By cash al By Bal, ceal 12000 Тэ Sales 44000

sales All By Accounts Receivables 350eo By cash Ale To Balo old 8olo 43000

Bal, bid Cash All Inventory the 60,000 By cost of goods sold 20,000 TD 300o By cost of goods sold By Bal, cld 38000 Supplies All 1000 1b To bal, bid Asunts Payable By Bal, and 4900 500 TO cash salaries All 3.500 By Bal, ced 350 Wages All 2400N cash Ale TO 24000 By Bala ad

To Inventory the To Inventory Ale Cost of goods sold Al 20,000 By Bala eld 5000 Seco Balance shat 32 gbo Current Assests Cash Accounts receivables Inventory Supplies ५५००० 38000 5000 22 DDO Nou current assest Equipment Accumulated Depreciation Total Assests current liabilities Accounts payable short term loon , unearned Revenue (3000) 138500 ODDO 170DO 3.000 Total liabilities 30o0o Net Assest (Assexts - liabilities ) 108500 o Wher's Equity (Total Assests Total liabilities) 108500