The Sew and Soup Club gives membership to people who want to exchange sewing and knitting patterns. It also runs a café selling refreshments to members. At 31 December, the club had the following assets and liabilities.
2020 / 2021
Subscriptions in advance $2260 / $1745
Subscriptions in arrears $1820 / $2115
Inventory of refreshments $1070 / $1130
Rent paid in advance $500 / $500
Trade payables for refreshment supplies $1940 / $1580
Bank balance $4628 / $7743
For the year ended 31 December 2021, the totals below were recorded.
Receipts:
Subscriptions received (all by cheque) $13900
Cash sales of refreshments $17650
Payments:
Rent $6000
Wages $7000
Other expenses $5000
Trade payables for refreshment supplies $10435
(a(i))[6]
Prepare the subscriptions account for the year ended 31 December 2021. Then balance the account and bring down the balances on 1 January 2022.
(a(ii))[3]
Explain whether the treasurer ought to be satisfied with the cash received from member subscriptions in the year ended 31 December 2021.
(b)[7]
Calculate the profit made on refreshments for the year ended 31 December 2021.
(c)[4]
Prepare the current assets section of the club’s statement of financial position for 31 December 2021.
Worked solution & mark scheme
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