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ACCT10002 Topic 4

Student exercise

4.2

The assistant accountant for “Make it Legendary Pty Ltd” has produced a trial balance for the period ending 30 June 2023 (first year of operations)

Your review of the financial information requires the following adjustments and accruals :

a)   Prepaid income includes an amount of $1,200 for sales that were delivered in June.

b)   Prepaid insurance represents the amount paid for insurance for the period 1 June

2023 to 31 May 2024.

c)   An invoice for equipment hire for $870 was not received in June.

d)   Repayments of the Loan during the period included an amount of $23,450 that was interest.

e)   The Advertising expense amount of $36,000 included an amount of $20,000 for July.

f)     Wages owing at the end of June 2023 were $3,290.

g)   A sales invoice for $5,360 was not processed in June (Cost of goods sold was $2,200).

Required:

a)   Complete the Trial Balance Worksheet   ACCT10002 Topic 4.2 Worksheet

b)   Prepare a Profit and Loss Statement for the period ending 30 June 2023.