Final Accounts- Spotless Automobile

Part (i)

Spotless Automobile
General Journal Entries
Date Details & Explanations F Dr ($) CR ($)
(a) Office Supplies Expense 15,000
Office Supplies 15,000

(b) Rent Expense 27,000

Prepaid Rent 27,000

(c) Insurance Expense 12,000

Prepaid Insurance 12,000

(d) Depreciation-Furniture & Fittings 65,000

Acc Depreciation-Furniture & 65,000
Fittings

(e) Depreciation- Cleaning Equipment 24,000

Acc Depreciation-Cleaning 24,000
Equipment

(f) Service Fees Receivable 19,000

Service Fees Earned 19,000

(g) Interest Expense 6,000

Interest Payable 6,000

(h) Unearned Service Fees 28,000

Service Fees Earned 28,000

(i) Wages & Salaries Expense 5,000

Wages & Salaries Payable 5,000
WORKINGS

We are aware that the business is a service industry and as such it offers intangible resources,
and it is labour intensive.
I. Supplies used = Beginning Supplies + supplies purchased – ending supplies = $24,000 +0 - $9,000=
$15,000
Part (ii) ID
#...............................................
Spotless Automobile
Worksheet (Partial) for the year ended June 30, 2012
Account Unadjusted Adjustments Adjusted
Title Trial Balance Trial Balance
Dr Cr Dr Cr Dr Cr
Accounts $ $ $ $ $ $
Cash 157,000 157,000
Service Fees 74,000 19,000(f) 93,000
Receivable
Office 24,000 15,000(a) 9,000
Supplies
Prepaid 48,000 12,000(c) 36,000
Insurance
Prepaid 54,000 27,000 (b) 27,000
Rent
Furniture & 600,000 600,000
Fixtures
Acc Dep. – 195,000 65,000(d) 260,000
Furniture &
Fixtures
Cleaning 312,000 312,000
Equipment
Acc Dep.- 24,000(e) 24,000
Cleaning
Equip.
Accounts 85,000 85,000
Payable
Wages & 5000(i) 5,000
Salaries
Payable
Interest 18,000 6000(g) 24,000
Payable
Unearned 49,000 28,000(h) 21,000
Service Fees
Long-Term 300,000 300,000
Loan
Devon 375,000 375,000
Peart,
Capital
Devon 28,000 28,000
Peart,
Withdrawals
Service Fees 565,000 28,000(h) 612,000
Earned 19,000 (f)

Rent 81,000 27,000(b) 108,000

Expense
Wages & 145,000 5000(i) 150,000
Salaries
Expense
Telephone 15,000 15,000
Expense
Office 15,000(a) 15,000
Supplies
Expense
Insurance 12,000(c) 12,000
Expense
65,000(d) 65,000
Depreciation
Expense –
Furniture &
Fittings.
24,000 (e) 24,000
Depreciation
Expense –
Cleaning
Equip.
Utilities 31,000
31,000
Expense
6000 (g) _____ 24,000
Interest 18,000 _____
Expense
1,587,000 1,587,000 201,000 201,000 1,706,000 1,706,000
TOTAL
WORKINGS

Part (iii)

Spotless Automobile
Income Statement for year ended
June 30, 2021
$ $
Service Fee Earned 612,000
Less: Expenses
Rent 108,000
Wages 150,000
Telephone 15,000
Office Expense 15,000
Insurance 12,000
Utilities 31,000
Interest 24,000
Depreciation- Furniture & Fittings 65,000
Depreciation- Cleaning Equipment 24,000 444,000
Net Income 168,000

Spotless Automobile
Statement of Changes in Equity for year ended
June 30, 2021
$ $
Capital at start 375,000
Add: Net Income 168,000
543,000
Less: Withdrawals (28,000)
Capital at end 515,000

WORKINGS
 Spotless Automobile
Classified Balance Sheet for year ended
June 30, 2021
Assets $ $
Non-Current Assets
Fixtures & Fittings 600,000
Acc.Depreciation- Fixtures & Fittings (260,000) 340,000
Cleaning Equipment 312,000
Acc. Depreciation- Cleaning Equipment (24,000) 288,000
Total Non-Current Asset 628,000

Current Asset
Cash 157,000
Service Fees Receivables 93,000
Prepaid Insurance 36,000
Prepaid Rent 27,000
Office Supplies 9,000 322,000
Total assets 950,000

Liabilities
Accounts payable 85,000
Wages & Salaries Payable 5,000
Interest Payable 24,000
Unearned Service Fee 21,000
Note payable due 60,000 195,000
Total Current Liabilities

Long Term Liabilities

Long Term Loan 240,000

Owner’s Equity
Capital at end 515,000
Total Liabilities and Owner’s Equity 950,000
WORKINGS