Question

From the following account balances to 30 June 2020 prepare a statement of financial position in...

From the following account balances to 30 June 2020 prepare a statement of financial position in the narrative classified format. Note: you will need to determine the balance of the retained earnings.

A: retained earnings = ?

Type of Account

                                $

Accounts Receivable  

                           46500

Provisions  

                           50000

Prepayments

                             1200

Sales Revenue  

                         455000

Plant and Equipment  

                         220000

Other Current Assets  

                           11000

Borrowings  

                         120000

Interest on Borrowings E

                             6000

Accumulated Depreciation

                           48500

Accounts Payable  

                           26000

Share Capital  

                         450000

Land and Buildings  

                         339000

Inventory  

                           78000

Two Year Term Deposit  

                           98500

Cash at Bank  

                           32000

Retained Earnings

                               ?

Salaries expense  

                         215000

Salaries Accrued

                           12500

Insurance Expense

                             9000

Annual Depreciation  

                           22000

Utilities Expense

                             8500

Selling Expenses

                           25000

Homework Answers

Answer #1
Financial Position as on June,30
Assets Amount($) Liablities Amount($)
Current Assets Current Liablites
Cash 32000 Accounts Payable 26000
Account Receivable 46500 Provisions 50000
Accumulated Depreciation 48500
Outstanding Salary 12500
Inventory 78000 Borrowings 120000
Prepayment 1200
Fixed assets Ownesr Equity
Plant and equipment 220000 Common Stock 450000
Land and Building 339000 Retained Earnings 119200
Investments (826200-707000)
Two Year Term Deposit 98500
Other Current Assets 11000
826200 826200
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