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Question 6

The following events occurred during the year ended 30 June 2020 for Electrical Limited.

a)On 1 June 2020, Electrical Ltd. signed a three-month 12% per annum note payable to purchase a new equipment costing $48,000. Interest and principal are paid at maturity.

b)On 29 June 2020, Electrical Ltd. received deposit in advance of $12,000 from a construction company for completing the electrical work for a new project during the next 6 months.

c)Electricity charges of $40,000 from 24 April to 23 June are payable on 10 July.

d)Electrical's main product is backed by warranty. Sales of this product for the year totalled $445,000. The opening balance of provision for warranty claims was $10,600. During the year, Electrical's warranty expense was $31,700 and claims paid to customers totalled $25,200.

e)June sales totalled $212,000. Electrical Ltd. collected GST of 10% on this amount. This is due to be paid to the tax office by the seventh day of the following collection.

f)On 30 June 2020, Electrical Ltd. took out a loan for $110,000 from AUZ Bank. Repayments of principal are scheduled evenly over a five-year period. Interest on the loan is paid in the year it is incurred.

Required:

For each item, indicate the account name and the amount to be included as a current liability on Electrical's balance sheet prepared at 30 June 2020. (show your working for your calculation for each amount).

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