Financial Statement on Haidi Sole Proprietor Case Study – Accounting & Finance Assignment Help

Assignment Task

Task 

Questions: 
1. Haidi is a sole proprietor and start his first-year business operation in year 2021. He had provided the following information to you to prepare his financial statement.

2021
Jan 1 Started in business with capital in cash $5,000 and bank $80,000.
Jan 1 Credit sales to: Thomas $2,560; Royce $3,100; Baton $2,145.
Jan 8 Paid rent from January 2021 to June 2021 by cheque for $500 per month.
Jan 11 Britney lent us $50,000 by cheque.
Jan 20 Bought lorry paying by cheque $30,000.
Feb 3 Credit purchases: Potter $1,440; Harris $925; Spencer $1,176.
Mar 7 Credit sales: Kelly $3,890; Siti $2,780; Lee $2,200.
Apr 9 Credit purchases: Penny $1,240; Harris $1,058; Mimi $1,123.
May 11 Goods returned by us to: Potter $112; Spencer $22.
May 25 Cash sales $400.
Jun 2 Paid electricity and water from January 2021 to May 2021 by cheque for $600.
Jun 14 Goods returned to us by: Thomas $50; Baton $145; Kelly $94.
Jun 15 Thomas paid us by cheque $2,510.
Jul 4 Paid motor expenses by cheque $1,010.
Jul 17 Credit purchases: Harris $1,054; Penny $965; Nixon $1,700.
Aug 20 Return outwards to: Spencer $54.
Aug 30 Withdrew $1,000 cash from the bank for business use.
Sep 24 Credit sales: Ben $2,057; Kelly $1,065; Tony $1,120.
Sep 25 Paid rent from July 2021 to November 2022 for $500 per month.
Oct 20 Paid insurance from November 2021 to October 2022 by cheque $1,200.
Oct 28 Return inwards from: Siti $94.
Oct 29 Royce and Lee paid us by cash, in each account deducting 1?sh discount.
Nov 3 Cash withdraw by Haidi, $200 for personal use.
Nov 12 We paid owing balances to Spencer and Nixon by cheque deducting 2?sh discount.
Nov 30 Received commission by cash $1,120.
Dec 2 Bought office equipment by cash $700.
Dec 15 Pay wages in cash $420.

Required: 
From the details above,
a) Prepare the relevant books of original entry.
b) Post the items in (a) to relevant account in Sales ledger, Purchases ledger and General ledger.
c) Prepare Trial balance as at 31 December 2021.
 

Based on additional information as below,

1- All assets are depreciated at 10% using straight line method.
2- The debt of Tony, RM120 was written off as bad debts.
3- Haidi is decided to make an allowance for doubtful debts 2%.
4- The closing inventories as at 31 December 2021 is RM3,000.
5- Electricity and water accrued from June 2021 to December 2021 is RM720.
6- Rent and insurance have to charge for year 2021 only.
 

d) Prepare Income statement for the year ended 31 2021 in column based.
e) Prepare Statement of financial position as at 31 2021 in column based.