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]
Trading business: bookstore, supermarket, toy shop etc
Service business: hair salon, barber, carwash service business, delivery business etc