The ledger of Daniel Penny, Financial consultant, contains the following account balances on 30th June 2015 and additional information for adjusting accounts. You are required to:
(A) Prepare a 10-column worksheet for the year ended 30 June 2015.
(B) Prepare the income statement, balance sheet and statement of change in equity.
(C) Journalise the closing entries.
|
Account
|
Debit ($)
|
Credit ($)
|
|
Cash at Bank
|
42,000
|
|
|
Prepaid rent
|
10,000
|
|
|
Accounts receivable
|
92,600
|
|
|
GST Receivable
|
9,200
|
|
|
Office Supplies
|
11,400
|
|
|
Land
|
600,000
|
|
|
Building
|
1,520,000
|
|
|
Accumulated depreciation- Building
|
|
640,000
|
|
Office Equipment
|
234,000
|
|
|
Accumulated depreciation - Office equipment
|
|
64,200
|
|
Accounts Payable
|
|
79,600
|
|
Unearned consulting fees
|
|
15,600
|
|
GST Payable
|
|
20,000
|
|
Mortgage payable
|
|
886,000
|
|
D. penny, Capital
|
|
714,900
|
|
D.penny, Drawings
|
527,800
|
|
|
Consulting fees revenue
|
|
1,568,600
|
|
Insurance expense
|
16,600
|
|
|
Salaries expense
|
879,400
|
|
|
Electricity Expense
|
7,600
|
|
|
Interest expense
|
20,900
|
|
|
Telecommunication expense
|
17,400
|
|
The following information is also available:
1. The rent was paid in advance for 12 months on 1st April 2015
2. The physical count of office supplies reveals that supplies totalling $4,200 are on hand at 30th June.
3. The balance in the unearned consulting fees account includes $ 12,000 earned for services rendered in the last week of June.
4. Estimated depreciation on the office equipment is $21,400. Depreciation on the building is $87,600
5. A 12-month insurance policy was purchased on 1 April for $7,800 plus GST.
6. The June monthly mortgage payment of $9,000 has not been paid or recorded. In each payment, $2,200 is attributable to interest.
7. The June telecommunications costs for $3,200 are unrecorded. No tax invoice has been received.
8. Salaries of $9,800 were owing to employees at 30 June 2015.
9. Office expenses of $2,000 incurred but not paid until 30 June 2015.
10. At the end of the year consultation services of $150,000 were provided but Daniel did not receive any cash for this yet.
Reference: Hoggett, J., Medlin, J., Edwards, L., Chalmers, K., Hellmann, A., Beattie, C. and Maxfield, J. (2015).Accounting.9th Edition, John Wiley & Sons Australia, Ltd.