Acc104 accounting for decisions 2
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Part 1
There are four financial statements – balance sheet, income statement,
statement of cash flows, and statement of changes in equity. Briefly describe the information conveyed by the balance sheet relative to that conveyed by the income statement. (3 Marks)
Part 2 – End of Period Adjustments and Closings and Financial Statements (17 Marks)
The unadjusted trial balance of ABC’s Financial Consultant, contains the following account balances as at 30 June 2017:
ABC FINACIAL CONSULTAT
Unadjusted Trial Balance, as at 30 June 2017
Account
Debit
Credit
Cash at Bank
Accounts Receivable
GST Receivable
Office Supplies
Land
Building
Accumulated Depreciation – Building
Office Equipment
Accumulated Depreciation – Office Equipment
Accounts Payable
Unearned Consulting Fees
GST Payable
Mortgage Payable
C. Delaney, Capital
C. Delaney, Drawings
Consulting Fees Revenue
Insurance Expense
Salaries Expense
Electricity Expense
Interest Expense
Telecommunications Expense
$ 5 200
9 260
920
1 140
60 000
152 000
23 400
52 780
1 660
87 940
760
2 090
1 740
$ 64 000
6 420
7 960
1 560
2 000
88 600
71 490
156 860
Total
$398 890
$398 890
The following additional account titles are included in the chart of accounts:
Prepaid Insurance
Telecommunications Expense Payable
Office Supplies Expense
Depreciation Expense – Buildings
Depreciation Expense – Office Equipment
Interest Payable
Salaries Payable
ACC104 Accounting for Decisions 2
Group Assignment
Date Due: Week 10
Marks: 20%
The following information is also available:
1. A physical count of office supplies reveals that supplies totalling $420 are on hand at 30 June.
2. The balance in the Unearned Consulting Fees account includes $1200 earned for services rendered in the last week of June.
3. Estimated depreciation on the office equipment is $2140. Depreciation on the building is $8760.
4. A 12-month insurance policy was purchased on 1 April for $780 plus GST.
5. The June monthly mortgage payment of $900 has not been paid or recorded. In each payment, $220 is attributable to interest.
6. The June telecommunications costs for $320 are unrecorded. No tax invoice has been received.
7. Salaries of $980 were owing to employees at 30 June 2017.
Required:
1. Prepare a 6-column worksheet for the year ended 30 June 2017. Use the same format of the column worksheet provided.
(8 marks)
2. Prepare the income statement, balance sheet (Narrative Format) and statement of changes in equity (7 marks)
3. Minutes of meetings attended by group members must be kept and detail attendance, work allocations, problems and resolutions to problems (Use template being provided 2 marks
All work must be done within the group and a record of meetings and work allocations must be kept. Any non-performance by group members will be noted and marks will be prorated according to the amount of work performed by the students.
ABC Financial Consultant – Worksheet for the year ended 30 June 2017 Unadjusted trial balance Adjustments Adjusted trial balance Account Title Debit Credit Debit Credit Debit Credit
Cash at Bank
Accounts Receivable.
GST Receivable…
Office Supplies
Land
Building
Accumulated Depreciation – Building…….
Office Equipment………
Accumulated Depreciation – Office Equipment…….
Accounts Payable……………
Unearned Consulting Fees
GST Payable…………
Mortgage Payable……….
C. Delaney, Capital
C. Delaney, Drawings
Consulting Fees Revenue
Insurance Expense
Salaries Expense
Electricity Expense
Interest Expense
Telecommunications Expense
398 890
398 890
ACC104 Accounting for Decisions 2
Group Assignment
Date Due: Week 10
Marks: 20%
– Income Statements, – Balance Sheet (Narrative Format) – Statements of Changes in Equity
