Question

SECTIONB QUESTION 11 Debhs Wholesale Antiaes financial year is Jaaary in December and the Sollowing urjasand e and accompanying dsa were yearended December 31.2016 Debibo Whokae Antias Trial Balanc VC Name Trial Baance Lncolaciblie account The fowng addiomal inoemation is availahke at Dec 31, 2016 li) Supplies on hand at Dc 31, 3016 amounied to $10,000 i 0,000 of the prepaid renm espired as at Decenmber 31, 2016 i The Famiure waa parchased n Jaruary2016 and is heing depeociated over five (5) years n the double-declining mhod uf deproation derwn to a rd 0o,. (iv) The Leasehold Improvements have precialed on the straighe-lne mehod doun to aredae of S20,000. estimated useful life of five (5) years and are being (v) Salaries eamed by employees not yet peid amoented to 5130000a Decesber 31,2016 ivi A physical coer of invemory at December 31, 2016 reveals SOOJ000 worth of inveslory iviii) After analysing the acctuzis in ·aunarib moemahle subsidiary ksdpr เอเฮซี the aging mcthod, the conpany's managemen estmned that uncollectible accousts will be 530000 Regairedi 1. Prepure the maary adjusting jvumal enric on December 31, 2016 47 Marks 2 Prepere the muki-step oome Stnenet for the year ended December 31.2016 19 Marksi Prepare the Statemer Oner'sEquity foe the year ended December 31. 2016 13 Mark 4, Prepare the Balince Sheet as December 31, 2016 4 1 Marks, QUESTION 12 Supper Conpany Ld, reponed teowing soey on its telanse sheet at June 30, Supper Company Ltd Juse 30,201:2 0 shores authorized 2.000,000 per share. 3, Requireme . What in the par valuc per share of Sepper'sprcred ck? IShow Working2Markai 2 What is the per value per share of Suppers common sock IShew Workings)12 Marks) 3. What ix the udling per dareftx the $6,000000 rupertru.ล paid-m capital in capa uf par common? iShew Workings) Marks) Prepare two(2) smmary joureal eatries to reoord issuance of all the Supper Compaay Lid sock for END OF QUESTION PAPER

Answer 1

Debbs Wholesale Antiques Adjusting Enteries Debit in $ Credit in $ Trans. Particulars i. Supplies Expense a/c Dr. 14500 To Supplies (Supplies Expensed) 14500 ii. Rent Expense a/c Dr. 80000 To Prepaid Rent 80000 Rent Expensed iii Depreciation Expense - Furn a/c Dr To Accum. Depre Furn 1200000 To Record Depreciation 3000000 x 2 x 1/5 iv. Depreciation Expense - Leasehold a/c Dr.236000 To Accum. Depre - Leasehold 236000 (To Record Depreciation) (1200000 20000)/5 v. Salary Expense a/c Dr 120000 To Salary Pavable 120000 Salary accrued vi Interest Expense a/cDr 5250 To Interest Payable 5250 (Interest accrued vii Inventory a/c 5000 To Cost of goods sold 5000 To record inventory adjustment) Bad Debts a/c (Bad debts estimated) viii 10000 To Allowance for Uncollectibles 10000

Worksheet For the period ending 31.12.2016 Adjustment Debit in $ Credit in $ Debit in Credit in $ Debit in $ Credit in $ Unadjusted Adjusted Particulars Cash Accounts Receivable Allowance for Uncollectibles Inventory Supplies Prepaid Rent Furniture Accum. Depre Furniture Leasehold Improvements Accum. Depre - Leasehold Accounts Payable Interest Payable Salaries Payable Notes Payable, Long Term Debbs, Capital Debbs, Withdrawals Sales Revenue Cost of goods sold Salary Expense Telephone Expense Utilities Expense Uncollectible Accounts Expense Depreciation Expense Furniture Depreciation Expense - Leasehold Rent Expense Supplies Expense Interest Expense Totals 300000 300000 20000 10000 95000 5000 100000 14500 24500 10000 80000 3000000 3000000 236000 210000 5250 120000 379250 5300000 236000 210000 5250 120000 379250 5300000 120000 120000 6900000 6900000 5000 3995000 610000 120000 730000 110000 110000 10000 10000 236000 80000 14500 5250 236000 600000 14500 520000 84750 12809250 12809250 1670750 1670750 14380500 14380500

Statement of Income For the period ending 31.12.2016 Sales Revenue Cost of goods sold Gross Profit 6900000 3995000 2905000 Operating Expenses: Salary Expense Telephone Expense Utilities Expense Uncollectible Accounts Expense Depreciation Expense Furniture 1200000 Depreciation Expense Rent Expense Supplies Expense Operating Loss Non Operating items: Interest Expense Net Loss 730000 125000 110000 10000 - Leasehold 236000 600000 14500 3025500 -120500 90000 210500 Statement of Owner's Capital For the period ending 31.12.2016 Debbs, Capital Net Loss 5300000 210500 5089500 120000 4969500 Less:Debbs, Withdrawals

Balance sheet As at 31.3.2018 Assets Current Assets Cash Accounts Receivable Allowance for Uncollectibles Inventory Supplies Prepaid Rent Amounts in$ Amounts in $ Liabilities Amounts in Amounts in $ Current Liabilities Accounts Payable Interest Payable Salaries Payable 2500000 300000 30000 100000 10000 40000 210000 5250 120000 335250 2920000 Non Current Liabilities Notes Payable, Long Term 379250 Non Current Assets Furniture Accum. Depre Furniture Leasehold Improvements Accum. Depre - Leasehold Total Assets 3000000 1200000 1200000 236000 1800000 Owner's Capital 964000 Debbs, Capital 4969500 5684000 Total Liabilities & Equity