2020 BGSS 3N POA EOY P2 Q3

3 Xuan Xuan’s financial year ends on 30 June. The business provided the following balances.

 

1 July 2019

30 June 2020

 

$

$

Insurance expense payable

1 500

 

Prepaid insurance expense

 

2 300

During the year, a cheque of $9 800 was paid for insurance expense.

REQUIRED

a. Prepare the journal entries to record transactions related to insurance expense. Closing entries are required. Narrations are not required.

[8]

b. Prepare an extract of the statement of financial performance for the year ended 30 June 2020.

[2]

c. Prepare an extract of the statement of financial position as at 30 June 2020.

[2]

d. Give an example of one trading business and one service business.

[2]

[TOTAL 14]

SOLUTION
Lorem ipsum dolor sit amet, consectetur adipisicing elit. Optio, neque qui velit. Magni dolorum quidem ipsam eligendi, totam, facilis laudantium cum accusamus ullam voluptatibus commodi numquam, error, est. Ea, consequatur.
d)

Trading business: bookstore, supermarket, toy shop etc 

Service business: hair salon, barber, carwash service business, delivery business etc