POA Practice 3 - Sunset Designs

The following balances were extracted from the books of Sunset Designs, Christine's home renovation company. The financial year ends on 31 March 2021. 1 April 2020 31 March 2021 Commission income received in advance900 1 100 Prepaid utilities expense 400 Utilities expense payable 280 The following information was provided: 1 On 30 November 2020, the business received cheques for commission income totalling $5 700. 2 The monthly utilities expense was $500. REQUIRED (a) Calculate the utilities expense incurred for the year ended 31 March 2021. (b) Prepare the journal entries to account for the following accounts for the financial year ended 31 March 2021 including the closing entry. Narrations are not required. (i) Commission income (ii) Utilities expense (c) Prepare an extract of the statement of financial performance for the year ended 31 March 2021. (d) Prepare an extract of the statement of financial position as at 31 March 2021. (e) State the accouting concept which explains the need to account for year-end adjustments for income and expenses.