The accountant of Paul Shop Fitter Private Limited has provided the following data on the...
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Accounting
The accountant of Paul Shop Fitter Private Limited has provided the following data on the Assets, Liabilities, Equity, Income and Expense amounts as at 30th June 2021.
$
$
Equipment
221,800
Supplies
84,200
Prepaid Insurance
24,000
Cash in Bank
88,400
Accounts receivable
182,800
Accounts payable
101,100
Capital
?
Bank loan
30,000
Service income
1,158,000
Salary expense
483,000
Advertising expense
15,000
Supplies expense
142,500
Required:
Prepare a Balance Sheet in the narrative (vertical) format as at 30th June 2021. (5 marks)
Explain what key information the Balance Sheet provides to users of the financial statements. (2 marks)
ANSWER:
Question 6 (7 marks)
The bank statement balance and cash account balance do not agree. The owner of E-Bite Limited has requested to prepare a bank reconciliation to reconcile these balances. For this purpose, the following information is given.
Deposits in transit are $9,800.
Outstanding cheques totalled are $3200.
The bank service charge is $24.
The collection of note by the bank is $800.
The bank statement balance is $9,000.
The cash account balance is $14,824.
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