BSBFIA401 Assessment Tasks On Prepare Financial Reports - Assessment 4

Assessment 4

Task 3

Accurate Steel Pty Ltd maintains inventory on a perpetual basis and advises you of the following:

The following adjustments are required to be completed for the year ended 30 June 2018

• Further Bad debt of $2,000 + GST $0 (exempt from GST) to be written off.
• Allowance (Provision) for doubtful debts to be increased to 5% of Accounts Receivable balance.
• Annual insurance premium of $3,600 (GST exclusive) was paid on February 1, 2018. Account for the amount that has been prepaid at 30 June 2018.
• Salaries and wages to be accrued at 30 June 2018 is $9,800
• Rental Income received in Advance $600
• Depreciation for the year (not recorded in the accounts) was

• Motor Vehicle $15,500
• Furniture and Fittings $4,500

Required
From the above information and the Trial Balance below:

1. Prepare the necessary general journal entries for the above balance day adjustments (14 marks)
2. Prepare a Classified Income Statement for the year ended 30 June 2018 (18 marks)
3. Prepare a Classified Balance Sheet as at 30 June 2018 (18 marks)

Note – the Perpetual Inventory system is used.