Question

In-class exercise Given below is a Trial Balance of Aliba Trading on 30 June 2019. Aliba...

In-class exercise

Given below is a Trial Balance of Aliba Trading on 30 June 2019.
Aliba Trading
Trial Balance as at 30 June 2019

Debit
Credit

RM
RM

Building
60,000

Fixtures and fittings
12,000

Office equipment
10,000

Inventory (1 July 2018)
13,500

Bank

3,450

Cash
2,340

Debtors and creditors
6,300
8,500

Loans

15,000

Capital

70,000

Drawings
1,250

Purchases
51,150

Sales

72,500

Sales returns
900

Purchase returns

400

Carriage inwards
1,100

Purchase discount

680

Sales discount
400

Wages expense
8,000

Interest expense
1,500

Commission received

1,350

Insurance expense
1,880

Repairs and maintenance expense
1,560

171,880
171,880

Aliba Trading has the following additional information for the accounting period ended 30 June 2019.
Stock count revealed that inventory on 30 June 2019 is valued at RM14,300 at cost and RM16,000 at market value.
Aliba Trading declared a bonus of half-month pay to reward all permanent employees on 30 June 2019. The bonus results in a total of RM4,000 in wages, which will be paid in August 2019.
Commission received is for the period June to August 2019.
Insurance purchased is valid from 1 January to 31 December 2019.

Required:

Prepare a Statement of Comprehensive Income for the year ended 30 June 2019 showing clearly the cost of sales.

In-class exercise

Given below is a Trial Balance of Aliba Trading on 30 June 2019.
Aliba Trading
Trial Balance as at 30 June 2019

Debit
Credit

RM
RM

Building
60,000

Fixtures and fittings
12,000

Office equipment
10,000

Inventory (1 July 2018)
13,500

Bank

3,450

Cash
2,340

Debtors and creditors
6,300
8,500

Loans

15,000

Capital

70,000

Drawings
1,250

Purchases
51,150

Sales

72,500

Sales returns
900

Purchase returns

400

Carriage inwards
1,100

Purchase discount

680

Sales discount
400

Wages expense
8,000

Interest expense
1,500

Commission received

1,350

Insurance expense
1,880

Repairs and maintenance expense
1,560

171,880
171,880

Aliba Trading has the following additional information for the accounting period ended 30 June 2019.
Stock count revealed that inventory on 30 June 2019 is valued at RM14,300 at cost and RM16,000 at market value.
Aliba Trading declared a bonus of half-month pay to reward all permanent employees on 30 June 2019. The bonus results in a total of RM4,000 in wages, which will be paid in August 2019.
Commission received is for the period June to August 2019.
Insurance purchased is valid from 1 January to 31 December 2019.

Required:
Prepare journal entries to account for all year-end adjustments.
Prepare a Statement of Comprehensive Income for the year ended 30 June 2019 showing clearly the cost of sales.
Prepare a Balance Sheet as at 30 June 2019.

Homework Answers

Answer #1
REVENUE
SALES 72500
LESS SALES RETURNS 900
NET SALES 71600
INDIRECT INCOME
COMMISSION RECEIVED 1350
LESS COMMISSION FOR THE PERIOD 180
FROM JULY TO AUG 2019
(1350*2/15)
NET COMMISISON 1170
TOTAL REVENUE 72770
OPENING STOCK 13500
PURCHASES 51150
LESS PURCHASE RETURNS -400
ADD WAGES 8000
ADD CARRIAGE INWARD 1100
LESS CLOSING STOCK -14300
59050
INDIRECT EXPENSES
INTEREST 1500
INSURANE 940
1880*6/12
BONUS 4000
TOTAL COST OF SALES 65490
NET PROFIT
TOTAL REVENUE -COST OF SALES 7280
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
An extract from the trial balance of Armstrong Corp. at June 30, 2019 is reproduced below:...
An extract from the trial balance of Armstrong Corp. at June 30, 2019 is reproduced below: Account Amount in unadjusted trial balance Amount in adjusted trial balance Unused office supplies $ 190 $ 55 Accumulated depreciation – truck 0 400 Prepaid insurance 850 610 Interest payable 0 100 Unearned rent 1,000 500 Requires: Prepare in General Journal format the entry that is posted including a plausible description. General Ledger account numbers are not necessary.
The trial balance of Sam Landscaping at 30 June 2019 is as follows: ****URGENT***** Sam Landscaping...
The trial balance of Sam Landscaping at 30 June 2019 is as follows: ****URGENT***** Sam Landscaping Trial Balance As at 30 June 2019 Account Debit ($) Credit ($) Cash 46,000 Accounts Receivable 48,000 Prepaid insurance 4,800 Landscaping Supplies 12,000 Equipment 25,000 Accumulated Depreciation - Equipment 4,800 Accounts Payable 35,000 Unearned Service Revenue 6,000 Sam L., Capital 50,500 Drawings 3,000 Service Revenue 58,000 Salaries Expense 13,000 Miscellaneous Expense 2,500 Total $ 154,300 $ 154,300 Additional information for the period: a. The...
The trial balance columns of the worksheet for Lamar Company at June 30, 2017, are as...
The trial balance columns of the worksheet for Lamar Company at June 30, 2017, are as follows.    LAMAR COMPANY Worksheet For the Month Ended June 30, 2017 Trial Balance Account Titles Debit Credit Cash 2,760 Accounts Receivable 3,100 Supplies 1,320 Accounts Payable $2,080 Unearned Service Revenue 360 Owner’s Capital 2,480 Service Revenue 3,100 Salaries and Wages Expense 700 Miscellaneous Expense 140 Total 8,020 8,020 Other data: 1. A physical count reveals $450 of supplies on hand. 2. $220 of the...
The adjusted trial balance shown below is for Greenwood Real Estate at the end of its...
The adjusted trial balance shown below is for Greenwood Real Estate at the end of its reporting period 30 June 2019. Debit $ Credit $ Cash at bank 10400 Accounts receivable 9400 Office supplies 600 Prepaid insurance 2500 Office equipment 14000 Accumulated depreciation—office equipment 4800 Accounts payable 3800 Salaries payable 2000 Rent revenue received in advance 600 Greenwood, Capital 16200 Greenwood, Drawings 700 Service revenue 35600 Rent revenue 12000 Salaries expense 28000 Office supplies expense 1700 Utility expense 5000 Insurance...
The following trial balance of Headland Co. does not balance. HEADLAND CO. TRIAL BALANCE JUNE 30,...
The following trial balance of Headland Co. does not balance. HEADLAND CO. TRIAL BALANCE JUNE 30, 2017 Debit Credit Cash $3,003 Accounts Receivable $3,364 Supplies 933 Equipment 3,933 Accounts Payable 2,799 Unearned Service Revenue 1,333 Common Stock 6,133 Retained Earnings 3,133 Service Revenue 2,513 Salaries and Wages Expense 3,533 Office Expense 1,073 Totals $14,169 $17,581 Each of the listed accounts should have a normal balance per the general ledger. An examination of the ledger and journal reveals the following errors....
Journal Entries and Trial Balance On June 1, 2019, Kris Storey established an interior decorating business,...
Journal Entries and Trial Balance On June 1, 2019, Kris Storey established an interior decorating business, Eco-Centric Designs. During the month, Kris completed the following transactions related to the business. June 1. Kris transferred cash from a personal bank account to an account to be used for the business, $26,100. 4. Paid rent for period of June 4 to end of month, $2,530. 6. Purchased a truck for $22,000, paying $2,000 cash and giving a note payable for the remainder....
From the ledger balances below, prepare a trial balance for Oriole Company at June 30, 2017....
From the ledger balances below, prepare a trial balance for Oriole Company at June 30, 2017. All account balances are normal. Accounts Payable $ 1,260 Service Revenue $8,890 Cash 5,660 Accounts Receivable 2,750 Common Stock 18,000 Salaries and Wages Expense 3,590 Dividends 1,610 Rent Expense 1,250 Equipment 13,290
Question 3 The following is a list of balances for Century for the period ended 30...
Question 3 The following is a list of balances for Century for the period ended 30 April 2019.                                                            P Capital 162,000 Vehicle at cost 180,000 Equipment at cost 120,000 Accumulated depreciation on: vehicles         90,000 Equipment                                    38,000 Inventory 70,000 Trade receivables 32,000 Bank 59,000 Cash 39,000 Trade payables 40,000 Loan 80,000 Sales 485,000 Cost of sales 240,000 Sales returns 5,000 Salaries and wages 84,000 Rent 28,000 Motor expenses 15,000 Telephone 7,000 Electricity and water 11,000 Insurance 4,000 Interest on...
IV. The unadjusted trial balance for the general fund of the Coamo City at June 30,...
IV. The unadjusted trial balance for the general fund of the Coamo City at June 30, 2019 is as follows: Debits Accounts receivable $ 40,000 Cash 75,000 Due from agency fund 25,000 Encumbrances 60,000 Estimated revenues 975,000 Expenditures 750,000 Taxes receivable 250,000 Credits Allowance for doubtful accounts 5,000 Allowance for uncollectible taxes 50,000 Appropriations 785,000 Due to trust fund 40,000 Fund balance-unassigned 30,000 Encumbrances Outstanding 60,000 Revenues 990,000 Taxes received in advance 15,000 Vouchers payable 200,000 Supplies on hand at...
The adjusted trial balance shown below is for Morrison Real Estate at the end of its...
The adjusted trial balance shown below is for Morrison Real Estate at the end of its reporting period 30 June 2019. Debit $ Credit $ Cash at bank 12500 Accounts receivable 9240 Office supplies 770 Prepaid insurance 2750 Office equipment 15400 Accumulated depreciation—office equipment 5280 Accounts payable 3680 Salaries payable 1200 Rent revenue received in advance 760 Morrison, Capital 17820 Morrison, Drawings 1250 Service revenue 32600 Rent revenue 15000 Salaries expense 17800 Office supplies expense 1900 Rent expense 11500 Insurance...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT