Below Is Theunadjusted Trial Balance For Winterfell Snow Ski A Business Owned And Op 4118358
Below is theunadjusted Trial Balance for Winterfell Snow & Ski, a business owned and operated by Jon Snow, as at 30 June 2017.
WINTERFELL SNOW & SKI
UNADJUSTED TRIAL BALANCE
As at 30 June 2017
Debit ($)
Credit ($)
Cash at Bank
142,752
Accounts Receivable
170,000
Inventory
748,800
Prepaid Insurance
26,208
Office Supplies on hand
17,472
Furniture & Fittings
212,160
Accumulated Depreciation – Furniture & Fittings
63,648
Delivery Equipment
249,600
Accumulated Depreciation – Delivery Equipment
99,840
Accounts Payable
144,144
Loan Payable
624,000
J. Snow – Capital
353,184
J. Snow – Drawings
149,760
Sales Revenue
3,685,488
Sales Returns and Allowances
52,928
Cost of Sales
2,198,976
Discount received
69,104
Freight inwards
49,920
Sales Salary Expense
364,416
Delivery Expense
97,344
Advertising Expense
143,520
Rent Expense
152,256
Office Salaries Expense
180,000
Electricity Expense
47,104
Discount Allowed
36,192
Totals
5,039,408
5,039,408
On the following page is information that Jon has provided to you in relation to the year
ended 30 June 2017.
1. Office Salaries which are payable but not recorded as at 30 June are $6,280.
2. Both the Furniture & Fittings and the Delivery Equipment are expected to be used evenly over their useful lives. The expected total useful lives and residual values of both assets is as follows:
Estimated Useful life
Estimated Residual
Furniture & Fittings
8 years
0
Delivery Equipment
6 years
$16,800
3. In order to allow for cash flow fluctuations, the bank has approved a $48,000 overdraft facility for Jon’s business bank account.
4. A count of the stationery room revealed that office supplies on hand at 30 June 2017 were $13,896.
5. The balance in the Prepaid Insurance account represents a 12 month insurance policy that commenced on 1 April 2017.
6. $21,600 of the recorded Sales Revenue is for specially imported snowboard which will not be delivered until 24 July 2017.
7. As of 30 June 2017, Jon has estimated that 3% of his Accounts Receivable will not be collected.
8. Jon last received an electricity bill on 31 May 2017, and Jon estimates that his power usage from then until 30 June 2017 was $1,753
REQUIRED:
As it is now the end of the financial year, you are required to prepare any necessary Balance Day Adjustment Journals for Winterfell Snow & Ski.
Include a brief narration (explanation) for each journal entry. (21 marks)
Date
Details
Debit ($)
Credit ($)