Ben has requested that the accounts and reports be prepared in a professional manner and presented within one week.
Interest owing on loan $4000.
Wages owing to employees $10000.
Additional bad debts to be written off (inclusive of GST) $5500.
Provision for doubtful debts to be equal to 4% of debtors.
Commission revenue yet to be received $5100.
The provision for long service leave is to be increased by 3% of all salaries and wages.
Provision for annual leave is to be doubled.
Advertising paid in advance $5000.
Equipment is being depreciated @15% p/a using the reduced balance method depreciation.
Motor vehicles are being depreciated @20% p/a using the straight-line method of depreciation.
On April 1 2014 one of the vehicles (BMW) Registration number STR333 was traded for $25000 on a new Volvo costing $66000 GST Inc, the balance payable over 3 years financed by a loan from ACG Finance. The BMW was purchased on 1 January 2010 from Smart car sales with an expected life of 5 years with no residual payment
Cost price INC GST $120000
Delivery costs INC GST $5000
Registration and insurance $2500
Note: the disposal of the vehicle has not been recorded in the accounts Stock on hand @ 30 June 2014 is $100000.
Required: Record the account balances in the general ledger accounts.