BCAF002: Falcon Security Solutions Sells Home Security Systems Since 2010: Principles of Accounting & Finance Assignment, TP, Singapore

Question 3

Falcon Security Solutions sells home security systems since 2010 The financial year of the firm ends on 30 June.

The following balances were extracted from the accounting records as at 30 June 2020:

All accounts in the ledger have normal balances. Additional information for year-end adjustments is as follows:

1) The firm delivered goods to a client on 30 June 2020. The client has not been billed the amount of $5,500. This amount has not been recorded in the accounting records.

2) One of the debtors owing $1,200 was declared bankrupt on 30 June 2020.

3) Estimated utility expense for June 2020 was $600. The bill is expected to be received and paid in July 2020.

4) Insurance expense of $6,000 was paid on 1 August 2019 for coverage from 1 November 2019 to 31 October 2020.

5s) Sales revenue as at 30 June 2020 included $2,700 from a client who made an advance payment for goods to be delivered in August 2020.

6) Depreciation of equipment of $1,000 is to be provided for.

Group Assignment

Required:

a) Prepare general journal entries for the necessary adjustments as at 30 June 2020. Narrations are not required.

b) Prepare the trial balance as at 30 June 2020 incorporating all adjustments.

Falcon Security Solutions

Trial Balance as at 30 June 2020

c) Prepare the Profit & Loss Statement for the year ended 30 June 2020Falcon Security Solutions

Profit & Loss Statement for the year ended 30 June 2020

d) Prepare the Balance Sheet as at 30 June 2020

Falcon Security Solutions Balance Sheet as at 30 June 2020