The following is the Statement of Financial Position of Stanley Oliver Enterpris
ID: 2347366 • Letter: T
Question
The following is the Statement of Financial Position of Stanley Oliver Enterprises at the end of its first year of trading. During the year ended 30 June 2012 the following transactions occurred: On 1 January 2012 Stanley Oliver Enterprises borrowed $30.000 for 7 years to purchase a delivery van for use in the business. The van is expected to have a useful life of 5 years and after this time be sold for $5,000. Cash sales totalled 49,000, credit sales totalled $205,000 (total cost of inventory sold was $110,700). The business premises are rented at a cost of $21,000 per year. During the year rent of $15,600 was paid. Credit purchases for the year totalled $102,100. Furniture and fittings are depreciated at the rate of 10% of cost. Salesman's wages totalling $62,000 were paid during the year. At 30 June 2012, Stanley Oliver Enterprises owed $1,200 being wages for the last week of the year. Rates of S2.400 on the premises were paid for the period 1 April 2012 to 31 March 2013. Delivery van running expenses paid totalled $7,100. Other business expenses paid during the year included advertising $1,900 and general administration expenses of $8,700. Electricity bills of $3,300 were paid during the year. On 28 June, Stanley Oliver Enterprises received an electricity bill of $410 for the period 1 April 2012 to 30 June 2012. Receipts from accounts receivable during the year totalled $197,900. Payment to accounts payable for credit purchases of inventory totalled $106,100. Interest on the delivery van loan is calculated as 5% of the balance outstanding at 30 June 2012. This had not been paid by 30June 2012. Stanley withdrew $25,000 cash from the business for personal use during the year. Prepare a Statement of Financial Position as at 30 June 2012 and a classified Income Statement for the year ending 30 June 2012 for Stanley Oliver Enterprises. (60 marks)Explanation / Answer
Total Assets = 265200 Total Liabilies = 173800 Owners' Equity = 91400
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