Chewie’s Toy Shop, whose financial year ends on 30 June, had the following balances in its ledger at 30 June 2015.
CHEWIES TOY SHOP
TRIAL BALANCE
AS AT 30 JUNE 2015
| Debit ($) | Credit ($) | |
| Cash at Bank | 134 928 | |
| Accounts Receivable | 221 308 | |
| Inventory | 187 200 | |
| Prepaid Insurance | 6 552 | |
| Office Supplies on hand | 4 368 | |
| Furniture & Fittings | 53 040 | |
| Accumulated Depreciation – Furniture & Fittings | 15 912 | |
| Delivery Van | 62 400 | |
| Accumulated Depreciation – Delivery Van | 24 960 | |
| Accounts Payable | 39 936 | |
| Loan Payable (long term) | 156 000 | |
| C Mayhew – Capital | 88 296 | |
| C Mayhew – Drawings | 37 440 | |
| Sales Revenue | 1 200 000 | |
| Sales Returns and Allowances | 10 172 | |
| Cost of Sales | 549 744 | |
| Discount received | 11 284 | |
| Freight inwards | 12 480 | |
| Sales Salary Expense | 80 104 | |
| Delivery Expense | 35 336 | |
| Advertising Expense | 35 880 | |
| Rent Expense | 26 044 | |
| Office Salaries Expense | 57 000 | |
| Electricity Expense | 13 344 | |
| Discount Allowed | 9 048 | |
| 1 536 388 | 1 536 388 |
The owner of Chewie’s Toy Shop has emailed you the following list of account information and asked you make the relevant adjustments on the worksheet for the year ended 30 June 2015:
(1) Sales Salaries which are payable but not recorded as at 30 June are $4 700.
(2) The Furniture and Fittings is expected to have a useful life of eight years and have a $200 scrap value (calculate and record the depreciation expense for the year)
(3) $280 of the recorded sales represent payments for toys which will not be delivered until 4 July 2015.
(4) The Delivery Van is expected to have a useful life of nine years and have a $795 scrap value (calculate and record the depreciation expense for the year).
(5) The bank has approved an overdraft facility for $15 000 for Chewie’s Toy shop.
(6) The Office Supplies on hand at 30 June 2015 was $2 300.
(7) $1 324 of the prepaid insurance expense had expired by the end of the year.
REQUIRED:
- Using the transactions provided above complete the worksheet provided. (17 marks)
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