acc10007 financial information for decision making final assessment questions – semester 2 2020
financial information for decision making
financial information for decis
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ACC10007 Financial Information for Decision Making
Final Assessment Questions – Semester 2 2020
Question 1 (22 marks)
Benjamin Graham owns ‘BG Enterprises’. The Balance Sheet as at 30 June 2019 is given below:
BG Enterprises
Balance Sheet as at 30 June 2019
Current assets Current liabilities
Cash at bank 29 100 Accrued wages 9 000
Accounts receivable 76 800 Accounts payable 111 000 120 000
Inventory 72 000 177 900
Non-current Liabilities
Non-current assets Loan 30 000
Equipment 144 000
Accumulated depreciation (14 400) 129 600 Total Liabilities 150 000
Owners’ equity
Capital 120 000
Retained earnings 37 500
Total owners’ equity 157 500
Total assets $307 500 Total liabilities & owners’ equity $307 500
Additional information:
The accounts payable were for amounts owing for purchases of inventory.
During the 2020 financial year, the following transactions took place:
1. Stock purchased on credit for $420,000.
2. Invoiced customers $450,000.
3. Cash Sales $45,000.
4. Paid rent $18,000 including $3,000 for 2 months’ prepaid rent for the following year.
5. Received $400,200 from debtors (Accounts Receivable)
6. Paid wages $132,500. Wages still owing at end of year $7,000
7. Paid creditors (Accounts Payable) $295,000
8. Annual Depreciation on equipment is 5% of cost
9. The owner withdrew $5,000 cash from the business
10. Paid 4% interest on the loan
Note: Stock on hand at 30 June 2020 was $180,000
Required:
a) Complete the worksheet for the year ending 30 June 2020.
b) Prepare a Statement of Profit or Loss for the year ending 30 June 2020.
c) Prepare a Statement of Financial Position as at the 30 June 2020.
(12 + 5 + 5 = 22 marks)
1
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