SAMPLE QUIZ
STU Ltd provides computer training services. STU charges $8,000 per day and allows
customers 30 days to pay invoices.
The balance sheet of STU Limited as at 31 May 2020 was as follows:
AUD$
Non-current assets
Motor vehicle
Accumulated Depreciation
Total non-current assets
24,000
(2,000)
22,000
Current Assets
Cash
Accounts receivable
Prepaid petrol cards
Total Assets
100,000
200,000
1,500
323,500
Current Liabilities
Wages payable
Accounts payable
Total Liabilities
10,000
97,500.
107,500
Shareholders’ equity
Share capital
Retained profits
Total Shareholders’ equity
Total equity + Liabilities
100,000
116,000
216,000
323,500
The following events occurred for STU Ltd during the month of June 2020:
a) Issued shares for cash consideration of $40,000.
b) Delivered twenty days of training during the month ending 30 June 2020.
c) Received $176,000 cash for invoices previously raised in May 2020.
d) Paid $30,000 for three months of rent covering 1 June 2020 to 31 August 2020.
e) Prepaid petrol cards at 31 May 2020 are $1,500. The petrol cards were used up
during the month ending 30 June 2020.
Received cash for five days of training to be delivered in the first week of July 2020.
g) Depreciation on a motor vehicle for the month ending 30 June 2020 is $1,000.
h) Paid wages of $80,000 for the month. Wages payable at 30 June 2020 are $15,000.
i) Interest on a bank loan for the month of June is $800 but has not yet been paid.
j) Cash dividends of $5,000 declared and paid.
f)
1. Prepare the journal entries and adjusting journal entries to record the transactions above
(24 marks)
2. Prepare an income statement for the month ended 30 June 2020 (16 marks)
3. Prepare a Balance Sheet as at 30 June 2020 (24 marks)