C) Balance Sheet – Adjusting Entries

You are provided with a Trail Balance sheet of all Statement of Financial Position (Balance Sheet) components as at 1 Feb 2020 for I-KnowBest Limited as shown in the Transactions Analysis table below. During the month ending 28 Feb 2020, the following five (5) transactions occurred that need adjusting entries:

1.  Purchased inventory on credit for $60,000 with the amount owing payable within 35 days.

2. An amount of $30,000 owing for credit purchase made on January is paid this month.

3. A new partner was brought in and she invested into the business in the form of $400,000 cash and Plant and Equipment worth $100,000.

4. A customer paid $25,000 for a credit purchase made last month.

5. The value of Land has increased by 10% and this needs to be recorded this month.

REQUIREMENTS 

You are required to:

(a) Complete the Transactions Analysis table clearly showing how each of the five (5) transactions have affected the appropriate assets, liabilities and equity components shown.

Then calculate the figures in the final column of the table from which the Statement of Financial Position of I-KnowBest Limited as at 28 Feb2020 can be prepared.

(b) Prepare the Statement of Financial Position for I-KnowBest Limited as at 28 Feb2020 in appropriate format (i.e., showing appropriate headings).

REWARD: 

Presentation quality, supporting research, in-text referencing, reference list, spelling and the use of correct grammar.