2020 SMSS 3E POA EOY P2 Q1
1 The following balances were extracted from the books of Martin Shoes as at 31 July 2020.
$ | |
Bank loan | 50 000 |
160 000 | |
Motor vehicle | 45 000 |
Premise | 220 000 |
Cash at bank | 15 600 |
Trade receivables | 3 400 |
Cash in hand | 1 780 |
27 500 | |
115 000 | |
9 900 | |
48 900 | |
5 800 | |
24 450 | |
Commission income | 6 890 |
7 000 | |
720 | |
Insurance | 8 000 |
Advertising | 13 900 |
Salaries and wages | 14 400 |
Trade payables | 2 660 |
Additional information:
1. Received a cheque of $1 720 from a credit customer for a full settlement of $1 800.
2. The business sublets the premise and earns a rent income of $650 a month.
3. Insurance amount included an insurance coverage of $320 meant for the month of August 2020.
4. Received a credit note for $720 worth of goods from a credit supplier.
5. The owner sold his investments worth $36 000 to buy shoes worth $26 000 for the business. He deposited the remaining amount into the business bank account.
6. Distributed $4 800 worth of shoes to influencers for them to promote these shoes on their social media.
7. One-quarter of the mortgage loan is repayable by 31 December 2020.
REQUIRED
a. Prepare the statement of financial performance for the year ended 31 July 2020.
[7]
b. Prepare the statement of financial position as at 31 July 2020.
[15]
[TOTAL 22]