ID #.........................
MONA SCHOOL OF BUSINESS & MANAGEMENT
ACCT1005 FINAL ASSESSMENT OF December 2020
STRUCTURED QUESTION
Part (a)
LANDRY MEDICAL DISTRIBUTORS
General Journal Entries
Date
Details & Explanations
F
Dr ($)
(i)
Store Supplies
25,000
(ii)
Insurance Prepaid
Insurance Expense
24,000
(iii)
Rent Prepaid
Rent Expense
14,000
Depreciation - Fixtures
Accumulated Depreciation
64,000
Depreciation – Computer Equipment
Accumulated Depreciation
90,000
Wages Expense
Wages Owing
14,000
Interest Expense
Interest Owing
9,000
(iv)
(v)
CR ($)
24,000
14,000
64,000
90,000
(vi)
(vii)
(viii)
(ix)
Bank
14,000
9,000
48,000
Bad Debt Recoverable
(x)
Bad Debt
Allowance for Bad Debt
48,000
19,500
19,500
(xi)
Answer Sheet_ Final Accounts_ Merchandising Business _December 2020.
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ID #........................
Part (b)
Landry Medical Distributors
Statement of Profit or Loss
For the year ending June 30, 2020
$
$
Sales
1,043,000
Less: Sales Discount
7,000
Sales Returns & Allowances
5,500
(12,500)
Net Sales
1,030,500
Cost of Goods Sold
(40,300)
Gross Profit
990,200
Other Income
Gain on disposal
14,000
Prepaid Insurance
24,000
Prepaid Rent
14,000
52,000
Less Expenses
Depreciation
154,000
Salaries Expense
165,000
Utilities Expense
87,500
Rent Expense
126,000
Store Supplies Expense
33,000
Interest Expense
27,000
Increase in Allowance
7,000
Net Profit
Answer Sheet_ Final Accounts_ Merchandising Business _December 2020.
(599,500)
442,700
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$
Answer Sheet_ Final Accounts_ Merchandising Business _December 2020.
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ID #..............................
$
$
Non-Current Assets
Computer Equipment
450,000
Accumulated Depreciation
(90,000)
NBV
360,000
Furniture & Fixtures
800,000
Accumulated Depreciation
(320,000)
NBV
480,000
Current Assets
Inventory
186,000
Cash
127,000
Accounts receivable
151,000
Less Allowance for bad debt
(19,500)
Prepaid Rent
14,000
Prepaid Insurance
24,000
482,500
1,322,500
Current Liabilities
Accounts Payable
133,500
Wages Owing
14,000
Interest Owing
9,000
Unearned Revenue
34,000
190,500
Non-Current Liabilities
Long Term Loan
270,000
Ownwers Equity
Capital
Less Drawings
Profit
898,500
(104,000)
490,700
1,285,200
Answer Sheet_ Final Accounts_ Merchandising Business _December 2020.
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Answer Sheet_ Final Accounts_ Merchandising Business _December 2020.
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ID #.........................
Part (c)
Current Ratio
Debt Ratio
Net Profit Percentage
Return on Owner’s Equity
Inventory Turnover
=
=
=
=
=
=
=
=
=
=
=
=
=
=
=
Part (d)
WORKINGS FOR JOURNAL ENTRIES
Answer Sheet_ Final Accounts_ Merchandising Business _December 2020.
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