Question -
Having opened for business on 1 July 2015, BFM Galleries Pty Ltd has now completed its second full year of operations.
The following is a summary of transactions and events for the 2017 financial year:
- Paid $6,000 tax owing from the previous financial year
- The prepaid rent of $2,000 from the previous year was used up in July 2016
- Rent payments were $30,000 which included an advance payment of $3,000 for rent in July 2017
- Credit purchases of inventory were $55,000
- Sales from the gallery were $200,000 of which 40% were for cash and 60% on credit
- The cost price of the above inventory sold was $62,000
- Purchased additional fixtures and fittings for $15,000 paying 50% cash and the other 50% still owing to the supplier
- Paid wages of $1,000 owing from last year
- Paid additional wages of $38,000 relating to the current year with a further $2,000 outstanding on June 30
- Paid utilities of $11,000 for the current year
- Received $105,000 from customers owing from previous credit sales
- Loan repayments were $14,000 made up of principal $10,000 and interest $4,000
- Paid inventory suppliers $60,000 owing from previous credit purchases
- Received $2,000 from the bank for interest earned on the business account
- The McFirdlesquirts invested a further $5,000 by purchasing more shares in the company to provide a cash injection
- Depreciation of fixtures & fittings was calculated to be $6,000 for the year
- BFM Galleries paid $20,000 in dividends to the McFirdlesquirts
- Income tax expense for the year was $15,000 and this amount is still owing to the Australian Tax Office
Note that $10,000 of loan principal is due within the next 12 months.
REQUIRED:
Refer to the 30 June 2016 balance sheet in the Seminar illustration. Using these figures, enter the opening balances on the first row of the transaction worksheet that follows.
Complete the transaction worksheet for 2017 using the summary of transactions and events from above.
Prepare an appropriately classified and formatted cash flow statement for BFM Galleries Pty Ltd for the 30 June 2017 reporting date.
Prepare an appropriately classified and formatted income statement for BFM Galleries Pty Ltd for the 30 June 2017 reporting date.
Prepare an appropriately classified and formatted balance sheet for BFM Galleries Pty Ltd for the 30 June 2017 reporting date.
Attachment:- Assignment Files.rar