Consider the following unadjusted balance for the accounting year ending on 31/12/2021: Dr(£) Cr(E) cash 2600 share capi

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Consider The Following Unadjusted Balance For The Accounting Year Ending On 31 12 2021 Dr Cr E Cash 2600 Share Capi 1 (60.74 KiB) Viewed 22 times

Consider the following unadjusted balance for the accounting year ending on 31/12/2021: Dr(£) Cr(E) cash 2600 share capital 10000 fixtures at cost 22000 accumulated depreciation (at 31/12/2020) 10000 sales 56000 trade receivables 14500 interest 600 boeds 10000 sales returns 2500 discounts granted 1000 vehicles at cost accumulated depreciation (at 31/12/2020) 16000 retained camnings 5500 accrued rent (31/12/2020) 1200 rent 9000 purchases 20000 inventory (at 31/12/2020) 4500 32000 (Continues on next page...) And the following additional information: Inventory at 31/12/2021 is 5600 . Fixtures are depreciated using the straight line method, with 10 years of useful life and a resale value of 2000. • Vehicles are depreciated using the reducing balance method, using a 50% yearly depreciation. At the end of the year, all the vehicles are sold for 10.000. The payment is expected in March 2022. Depreciation for the year on vehicles is still charged in full. • Rent is paid quarterly in arrears, falling due on 31/1, 30/4, 31/7 and 31/10. Monthly rent was 600 until 31/1/2020 and 800 afterwards. (.e. cash rent paid includes a payment for 1800 on 31/1/2020 and three payments for 2400). A trade receivable for 2000 is considered irrecoverable. Moreover, the company needs to take a doubtful debt provision equal to 6% of outstanding trade receivables. Prepare the adjusted trial balance at 31/12/2021. For each adjustment, show your workings and explain them.