QUESTION ONE

Refer to Resource A when answering all parts of this question.

Mountain Adventures offer guided walking and mountain bike tours from half day options up to 5-day
tours.

(a) Prepare the General Journal entry to record the following balance day information for Mountain
Adventures. (Narrations are NOT required.)

$560 is owing for walking tour guide wages.

30/6/2020

(b) Complete the General Ledger accounts below for Mountain Adventures to show the relevant
balance day adjustments and closing entries (if required):

Mountain bikes

30/6/2020

Depreciation on mountain bikes

30/6/2020

Botany Downs Secondary College – AS 91176 Topic Test 2021

(c) Prepare all Expenses sections of the Income Statement (extract) for Mountain Adventures for
the year ended 30 June 2020.

Mountain Adventures
Income Statement (extract) for the year ended 30 June 2020

$ $ $

Total Income 198 250

Less : Expenses

Tour expenses

Botany Downs Secondary College – AS 91176 Topic Test 2021

QUESTION TWO

Refer to Resource A when answering all parts of this question.

(a) Prepare the General Journal entry to record the following balance day information for Mountain
Adventures. (Narrations are NOT required.)

$160 is owing to Mountain Adventures for dividends.

30/6/2020

(b) Complete the General Ledger accounts below for Mountain Adventures to show the relevant
balance day adjustments and closing entries (if required).

GST payable

30/6/2020

Mountain bike tour fees received

30/6/2020

Botany Downs Secondary College – AS 91176 Topic Test 2021

(c) Prepare the Current liabilities section of the Statement of Financial Position as at 30 June 2020
for Mountain Adventures.

Mountain Adventures
Statement of Financial Position (extract) as at 30 June 2020
$ $ $
Current Liabilities

(d) Prepare the Property, Plant and Equipment Note to the Statement of Financial Position as at 30
June 2020 for Mountain Adventures.

Mountain Adventures
Statement of Financial Position (extract) as at 30 June 2020
$ $
Camping
Property, Plant & Equipment Note Mountain bikes
equipment
For the year ended 30 June 2020
Opening carrying amount 3 430 0

Closing carrying amount

As at 30 June 2020

Carrying amount

Botany Downs Secondary College – AS 91176 Topic Test 2021

QUESTION THREE

(a) Prepare the General Journal entry to record the following balance day information for Mountain
Adventures. (Narrations are NOT required.)

$230 including GST is to be written off as a bad debt.

30/6/2020

(b) Complete the General Ledger accounts below for Mountain Adventures to show the relevant
balance day adjustments and closing entries (if required):

Allowance for doubtful debts

30/6/2020

Doubtful debts

30/6/2020

Botany Downs Secondary College – AS 91176 Topic Test 2021

(c) Prepare the Cash Payments section of the Cash Flow Statement extract for Mountain
Adventures for the year ended 30 June 2020.

Mountain Adventures
Cash Flow Statement (extract) for the year ended 30 June 2020
$ $
Cash Payments
Cash to suppliers 5 200

Botany Downs Secondary College – AS 91176 Topic Test 2021