Financial Accounting Practice Assignment Help

Introduction

Daniel Penny
Worksheet
For the year ended 30 Jun, 2015
Particulars	Trial Balance		Adjustments		Adjusted TB
	Dr	Cr	Dr	Cr	Dr	Cr
Cash at Bank A/c	$        42,000			$   20,580	$      21,420
Prepaid rent a/c	$        10,000				$      10,000
A/cs receivable A/c	$        92,600				$      92,600
GST Receivable	$          9,200				$        9,200
Office Supplies	$        11,400			$     4,200	$        7,200
Land	$      600,000				$    600,000
Building	$   1,520,000				$ 1,520,000
Accumulated depreciation- Building		$   640,000		$   87,600		$   727,600
Office Equipment	$      234,000				$    234,000
Accumulated depreciation – Office equipment		$     64,200		$   21,400		$     85,600
Accounts Payable		$     79,600				$     79,600
Unearned consulting fees		$     15,600				$     15,600
GST Payable		$     20,000				$     20,000
Mortgage payable		$   886,000		$     6,800		$   892,800
D. penny, Capital		$   714,900				$   714,900
D.penny, Drawings	$      527,800				$    527,800
Consulting fees revenue		$1,568,600		$ 150,000		$1,718,600
Insurance expense	$        16,600		$      7,800		$      24,400
Salaries expense	$      879,400		$      9,800		$    889,200
Electricity Expense	$          7,600				$        7,600
Interest expense	$        20,900		$      2,200		$      23,100
Telecommunication expense	$        17,400		$      3,200		$      20,600
Supplies expenses			$      4,200		$        4,200
Depreciation on office equipment			$    21,400		$      21,400
Dep. on building			$    87,600		$      87,600
GST on insurance			$         780		$           780
Mortgage expenses			$      6,800		$        6,800
Office expense			$      2,000		$        2,000
Office expenses payable				$     2,000		$       2,000
Telecommunication expense payable				$     3,200		$       3,200
Accrued consultancy fees			$  150,000		$    150,000
Profit
	$   3,988,900	$3,988,900	$  295,780	$ 295,780	$ 4,259,900	$4,259,900

(a) Prepare a 10-column worksheet for the year ended 30 June 2015.

To be continued.

Daniel Penny
Worksheet
For the year ended 30 Jun, 2015
Particulars	Income statement		Balance sheet
	Dr	Cr	Dr	Cr
Cash at Bank A/c			$       21,420
Prepaid rent a/c			$       10,000
A/c receivable A/c			$       92,600
GST Receivable			$         9,200
Office Supplies			$         7,200
Land			$     600,000
Building			$  1,520,000
Accumulated depreciation- Building				$    727,600
Office Equipment			$     234,000
Accumulated depreciation – Office equipment				$      85,600
Accounts Payable				$      79,600
Unearned consulting fees				$      15,600
GST Payable				$      20,000
Mortgage payable				$    892,800
D. penny, Capital				$    714,900
D.penny, Drawings			$     527,800
Consulting fees revenue		$ 1,718,600
Insurance expense	$       24,400
Salaries expense	$     889,200
Electricity Expense	$         7,600
Interest expense	$       23,100
Telecommunication expense	$       20,600
Supplies expenses	$         4,200
Depreciation on office equipment	$       21,400
Dep. on building	$       87,600
GST on insurance	$            780
Mortgage expenses	$         6,800
Office expense	$         2,000
Office expenses payable				$        2,000
Telecommunication expense payable				$        3,200
Accrued consultancy fees			$     150,000
Profit	$     630,920			$    630,920
	$  1,718,600	$ 1,718,600	$  3,172,220	$ 3,172,220

(Alin-Eliodor, 2014)

Assumptions –

• It is given that rent is paid for 12 months on 1.4.15. It is assumed that $10000 is paid for the month July 15 to Jan 16 and rent expense of this month is already adjusted.
• The consulting revenue of $12000 is of June last week. It is included in the unearned income a/c. Hence, no adjustment required.
• It is assumed that salary of this month is not recorded and it is paid.

Analysis of the worksheet–The worksheet is prepared to show the overall financial statements in a single worksheet. It consists of debit and credit side of a number of statements like trial balance before adjustments, adjusted amounts in the accounts, trial balance after adjustments, income statement and final balance sheet. Then, all the balances are summed up at the end to show the accuracy of the entries.

(b) Prepare the income statement, balance sheet and statement of equity.

Income statement
Particulars	Dr	Cr
Revenue		$       1,718,600
Less –
Expenses
Insurance expense	$           24,400
Salaries expense	$         889,200
Electricity Expense	$             7,600
Interest expense	$           23,100
Telecommunication expense	$           20,600
Supplies expenses	$             4,200
Depreciation on office equipment	$           21,400
Dep. on building	$           87,600
GST on insurance	$               780
Mortgage expenses	$             6,800
Office expense	$             2,000
		$       1,087,680
Net profit		$         630,920

(Gad, 2015)

Balance sheet
Particulars	Amount
ASSETS
Non – current assets
Land	$   600,000
Building	$1,520,000
Office Equipment	$     234,000
Current assets
Cash at Bank A/c	$     21,420
Prepaid rent a/c	$     10,000
A/c receivable A/c	$     92,600
GST Receivable	$       9,200
Office Supplies	$       7,200
Accrued consultancy fees	$     150,000
	$2,644,420
LIABILITIES
Capital
D. penny, Capital	$     714,900
D.penny, Drawings	$    (527,800)
Profit	$     630,920
Non – current liabilities
Accumulated depreciation- Building	$     727,600
Accumulated depreciation – Office equipment	$       85,600
Current liabilities
Accounts Payable	$       79,600
Unearned consulting fees	$       15,600
GST Payable	$       20,000
Mortgage payable	$     892,800
Office expenses payable	$         2,000
Telecommunication expense payable	$         3,200
	$2,644,420

(RĂSCOLEAN& MONEA, 2014)

Statement of change in equity
Particulars	Amount
Capital	$     714,900
Less – Drawings	$    (527,800)
Add – Profit during the year	$     630,920
	$     818,020

Analysis–The income statement is prepared to show the net profit or loss account during the year after showing the revenue and total expenditure during the year. The balance sheet shows the total balances of assets and liabilities at the end of the accounting period. And the statement of equity shows the net balances of the capital or owner’s equity at the end of the period.

(c) Journalise the closing entries.

	Particulars	Amount	Amount
1	Supplies expenses a/c Dr	$       4,200
	To office supplies		$       4,200
2	Depreciation on building a/c Dr	$     87,600
	To Accumulated depreciation a/c		$     87,600
3	Dep. on office equipment a/c Dr	$     21,400
	To Accumulated depreciation a/c		$     21,400
4	Mortgage expenses a/c Dr	$       6,800
	To mortgage payable a/c		$       6,800
5	Accrued revenue a/c Dr	$   150,000
	To consulting fees a/c		$   150,000
6	Insurance expenses a/c Dr	$       7,800
	To bank a/c		$       7,800
7	Salary expenses a/c Dr	$       9,800
	To bank a/c		$       9,800
8	Interest expense a/c Dr	$       2,200
	To bank a/c		$       2,200
9	Telecommunication exp a/c Dr	$       3,200
	To telecommunication payable a/c		$       3,200
10	GST on insurance a/c Dr	$          780
	To bank a/c		$          780
11	Office expense a/c Dr	$       2,000
	Office expenses payable a/c		$       2,000

(Marques, 2010)

Analysis – Journal entries are the base to the reporting system of the financial statements. On the occurrence of any transaction, one account is debited and another account is credited, which satisfies the double entry system concept of the reporting requirements.

References

Marques, A. 2010, “Disclosure strategies among S&P 500 firms: Evidence on the disclosure of non-GAAP financial measures and financial statements in earnings press releases”, The British Accounting Review, vol. 42, no. 2, pp. 119-131. Order Now