2020 BGSS 3E POA EOY P2 Q3
3 Best Price Trading’s financial year ends on 30 June. The owner of the business provided the following balances.
1 July 2019 | 30 June 2020 | |
$ | $ | |
Insurance expense payable | 1 500 | |
Prepaid insurance | 2 300 | |
Rental income receivable | 2 500 | 5 000 |
An extract from the cash book for the year is provided below.
REQUIRED
a. Prepare the journal entries to record transactions related to insurance expense. Closing entries are not required. Narration is not required.
[8]
b. Calculate the rental income earned for the year ended 30 June 2020.
[2]
c. Prepare an extract of the statement of financial performance for the year ended 30 June 2020.
[2]
d. Prepare an extract of the statement of financial position as at 30 June 2020.
[2]
[TOTAL 14]
Rental income earned = -2500 + 27500 + 5000
= $30 000