Prepare reports for ABC Realty | My Assignment Tutor

Open “Ch12_ABC_01.myox”. 12.1 Prepare reports for ABC Realty Pty Ltd: Trial balance for 30 June 2019 (This Year FY2019). Reports > Accounts Payables Reconciliation (Summary) report as at 30 June 2019. Reports > Purchases > Payables > Payables Reconciliation [Summary]. Receivables Reconciliation (Summary) report as at 30 June 2019 Reports > Sales > Receivables Reconciliation [Summary]. 12.2 Prepaid Rent: Rent expense in Trial Balance ($2,600) includes $200 for prepaid rent relating to the next FY, so an adjustment is required: Account #Account NameDRCR1-2140Prepaid Rent$2006-2050Rent$200 On 1 July 2019 the entry needs to be reversed. Command Centres > Accounts > Record Journal Entry. Check , and make sure Rent is $200 and Tax is N-T. Prepaid Insurance: on motor vehicle $1,460, annual policy from 1 April 2018. Expired days = April 30 days + May 31 days + June 30 days = 91 days Expired Prepaid Insurance = $1,460 * 91/365 = $364 Account #Account NameDRCR6-1500Insurance Exp – Motor Vehicle$3641-2100Prepaid Ins – Motor Vehicles$364 Loss of Profits Insurance Policy: $2,190, commenced 1 February 2019. Expired = Feb 28 days + Mar 31 days + Apr 30 days + May 31 days + Jun 30 days = 150 days Expired prepaid insurance = $2,190 * 150/365 = $900 Account #Account NameDRCR6-1520Insurance Exp – Loss of Profits$9001-2120Prepaid Ins – Loss of Profits$900 Depreciation Motor Vehicles at 15% (prime cost or straight line) on historical cost of $15,800. Depreciation expense = $15,800 * 15% = $2,370 Account #Account NameDRCR6-1200Depreciation – Motor Vehicles$2,3701-3320Motor Vehicles – Accumulated Depreciation$2,370 Depreciation Office Equipment at 10% (reducing balance) on historical cost of $9,500. Depreciation expense = ($9,500 – $1,800) * 10% = $2,370 Account #Account NameDRCR6-1200Depreciation – Motor Vehicles$7701-3320Motor Vehicles – Accumulated Depreciation$770 Accrued expenses: Sales Commission $280 Account #Account NameDRCR6-2300Sales Commission$2802-1160Accrued Sales Commission$280 Accrued expenses: Telephone Expenses $146 Account #Account NameDRCR6-2500Telephone$1462-1170Accrued Telephone Expenses$146 Accrued Interest Payable on Long Term Interest Bearing Liabilities $170 Account #Account NameDRCR9-1000Interest Expense$1702-1155Accrued Interest Payable$170 On 1 July 2019 these would need to be reversed. There is no GST on accruals. Provision for Income Tax Prepare Profit & Loss Statement for 1 July 2018 to 30 June 2019 FY2019 (This Year). Assume tax rate of 30%, tax provision = $3,730 * 30% = $1,119 Account #Account NameDRCR9-2000Income Tax Expense$1,1192-1700Income Tax Payable$1,119 Command Centres > Accounts > Record Journal Entry. Check . Reviewing End of Year Adjustments Command Centre > Account > Transaction Journal Reports > Profit & Loss Reports > Balance Sheet 12.3 Closing a Financial Year For the next FY2020, File > Restore & rename the file as “Ch12_ABC_02” Close the Financial year AGAIN. Checking the Trial Balance for July 2019 (This Year FY2020). Note that income and expense accounts have been reset to zero. 12.4 Reversing Journal Entries Command Centres > Accounts > Record Journal Entry. Make sure this time you uncheck Year-End Adjustment . And make sure the Tax field is “NT”. On 1 July 2019: Account #Account NameDRCR6-2050Rent$2001-2140Prepaid Rent$200 Account #Account NameDRCR2-1160Accrued Sales Commission$2806-2300Sales Commission$280 Account #Account NameDRCR2-1170Accrued Telephone$1466-2500Telephone Expenses$146 Account #Account NameDRCR2-1155Accrued Interest Expense$1709-1000Interest Payable$170 Check the Transaction Journal: Trial Balance for July This Year FY2020