2020 BGSS 3N POA EOY P2 Q3

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]

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Trading business: bookstore, supermarket, toy shop etc 

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

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