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Accrual Journals and Balance Sheet
Student’s Name
Professor’s Name
Course Title
Date
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Accounting Questions and Answers
1.     Record all the necessary entries in the relevant journals and ledgers, excluding balance day adjustments, to maintain proper accounting records, for June. Please note that you may need to create new accounts using, subsequent account numbers where necessary.
Discount received
Date               Details                        Invoice No.                Dr                   Cr
2                     Accounts payable                                                                   298.3 Â
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           Discount allowed
Date               Details                        Invoice No.                Dr                   Cr
18                   Account receivable                                        297
Sales revenue
Date               Details                        Invoice No.                Dr                   Cr
June 1             cash                                                                                        4499
1                     Account receivable                                                                18810
3                     Herman Garden                                                                     29,700
4                     cash                                                                                        440
11                   Buderim                                                                                 4070
18                   Yandina                                                                                 11605
21                   Cash                                                                                       14190
23                   Cash                                                                                       4444
25                   Harry Mower                                                                         13431
28                   Cash                                                                                       3410 Â
                                                                                                                       104,599
Sales Journal
Date               Details                        Invoice No.                Amount
June 1             Noosa Estate Pty                                           18810
3                     Herman Garden                                             29,700
11                   Buderim                                                         4070
18                   Yandina                                                         11605
25                   Harry Mower                                                 13431
                                                                                                           77,616
Â
           Accounts receivable
Date               Details                        Invoice No.                Dr                   Cr
June 1             Noosa Estate                                                  18810
3                     Herman garden                                              29,700
8                     Noosa                                                                                     7500
11                   Buderim                                                         4070
12                   Buderim                                                                                 40480
18                   Yandina                                                         11605
18                   Cash                                                                                       29403
18                   Discount allowed                                                                   297
25                   Harry mower                                                  13431                        Â
                                                                                               77616             77680
                       Bal c/d                                                            64      Â
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Purchases Journal
Date               Details                        Invoice No.                Amount
June 11Â Â Â Â Â Â Â Â Â Â Â STNGÂ Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 4212Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 49900
11                   Motomoto                                                      220
11Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â STNGÂ Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 550
11                   Motomoto                                                      330
11Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â STNGÂ Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 660
22Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â STNGÂ Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 4283Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 3340
                                                                                               54,700
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Purchases
Date               Details                        Invoice No.                Dr                   Cr
11                   Accounts payable                   4212               49900Â
22                   Account payable                    4283               3340
                                                                                               53240                                                            Â
Account Payable ledger
Date               Details                        Cheaque no.               Dr                   Cr
2                     Bank                           101                             29531.7
2                     Discount allowed                                           298.3
7                     Motomoto                  102                             15,200
11Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â STNGÂ Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 49900
11Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â STNGÂ Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 550
11                   Motomoto                                                                              220
16Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â STNGÂ Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 330
16                   Motomoto                                                                              660
22Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â STNGÂ Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 3340
23                   Moto two                                                                               330
23Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â STNGÂ Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 550
25Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â STNGÂ Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 108Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 3850
27                   Moto two                   109                             550
                                                                                               49430             55880
                       Bal c/d                                                                                    6450
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Cash Payment Journal
Date               Details                        Cheaque No.              Amount
June 1             rent                             100                             6,600
7                     Moto moto                 102                             15,200
8                     Electricity                   103                             3260
13                   petrol and oil              104                             220
14                   Insurance                    105                             39600
14                   Drawings                    106                             6600
15                   Advertising                107                             11000
21                   Drawings                                                        2000
25Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â STNGÂ Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 108Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 3850
27                   Moto Two                  109                             550
28                   Stationery                   110                             880
28Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Internet and telephone 111Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 313.5
                                                                                               90,073.5
Cash receipt Journal
Date               Details                                    Amount
June 1             Cash                                       4499
4                     cash                                        440    Â
11                   bank                                       2688.13
12                   Cash                                       40480Â
16                   bank                                       3086.60
18                   Cash                                       29403Â
21                   Cash                                       14190Â
23                   Bank                                       2909.5
23                   Cash                                       4444
28                   cash                                        3410
                                                                       105,550.23                Â
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Cash
Date               Details                        Invoice No.                Dr                   Cr
June 1             sales                                                                4499
4                     sales                                                                440
8                     Noosa                                                             7500
12                   Buderim                                                         40,480
18                   Account receivable                                        29403
21                   Sales                                                               14190
23                   Sales                                                               4444
28                   Sales                                                               3410
                                                                                               100,956
Bank
Date               Details                        Invoice No.                Dr                   Cr
June 1             Cash                                                                                       4499
1                     Rent                                       100                                         6600
2                     Account receivable                101                                         29,531.7
7                     cash payment                         102                                         15200
7                     drawings                                                        2000
8                     Electricity                               103                                         3260
11                   Service revenue                                              2688.13
13                   Buderim                                                                                 220
14                   insurance                                                                                39600
15                   Drawings                                                                                6600
15                   Advertising                                                                            11000
16                   service revenue                                               3086.60
21                   Drawings                                                                                2000
23                   Service revenue                                              2909.5
25Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â STNGÂ Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 108Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 3850
27                   Moto two                               109                                         550
28                   Stationery                               110                                         880
28                   Internet and telephone                       111                                         313.5
                                                                                               10684.23        124,104.2
                       Bal c/d                                                            113,419.97
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Wages & Drawings
Date               Details                        Cheaque No.              Dr                   Cr
June 7             Ross                                                               2000
14                   Ross                           106                             6600
21                   Ross                                                               2000
                                                                                               10,600           Â
Electricity
Date               Details                        Cheaque No.              Dr                   Cr
June 8             Electron ltd                103                             3260              Â
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Servicing revenue
Date               Details                        Cheaque No.              Dr                   Cr
June 11           Bank                                                                                       2688.13
16                   Bank                                                                                       3086.60
23                   Bank                                                                                       2909.5
                                                                                                                       8684.23         Â
Cost of service
Date               Details                        Invoice No.                Dr                   Cr
June 11           Moto Two                  16-21001                    220
11Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â STNGÂ Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â SP-3-8009Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 550
16                   Moto Two                  16-21081                    330
16Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â STNGÂ Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â SP-3-8039Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 660
23                   Moto two                   16-21505                    330
23Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â STNGÂ Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â SP-3-8122Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 550
                                                                                               2640
Â
Supplies expense
Date               Details                        Cheq No.                    Dr                   Cr
June 13           Bank                           104                             220
Â
Insurance
Date               Details                        Cheq No.                    Dr                   Cr
June 14           Bank                           105                             39600
Â
Advertising
Date               Details                        Cheaque No.              Dr                   Cr
June 15           Bank                           107                             11000
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Stationery
Date               Details                        Cheaque No.              Dr                   Cr
June 28           Bank                           110                             880
Internet and Telephone
Date               Details                        Cheaque No.              Dr                   Cr
       June 28         Bank                           111                             313.5
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Rent
Date               Details                        Cheaque No.              Dr                   Cr
June 2             Bank                           100                             6600
2. Prepare an Unadjusted Trial Balance on the worksheet provided.
RTK Buderim Mowers
Unadjusted Trial balance as at 31st June 2016
Details                                                            Dr. ($)                        Cr. ($)
Cash                                                                           100,956
Sales revenue                                                                                                 104,599
Rent expense                                                              6,600
Account Receivable                                                   64
 Cash at bank                                                             (109,638.97)
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\\Discount received                                                                                        298.30
Accounts payable                                                                                           6450
Ross Drawings                                                                       10,600
Electricity expense                                                     3,260
Supplies Expense                                                       220
Purchases                                                                   53240
Service revenue                                                                                                          8,684.23
Discount Allowed                                                      297
Insurance expense                                                     39,600
Advertising expense                                                  11,000
Cost of service                                                                       2640
Stationery expense                                                     880
Phone and internet expense                                       313.5                                     Â
                                                                                   120,032                      120,032
3. Record all the necessary balance day adjustments for June in the GeneralJournal and post to the General Ledger accounts.
Supplies
           Details                                                                        Dr                   Cr
Cash                                                                                                   620
Cash
           Details                                                                        Dr                   Cr
Supplies                                                                      620
Wages for June 21stand 7th June
Name                          Amount ($)   Medical  Taxable income      Tax    Â
L Datar                       6536               (40)                 6496               -                     Â
J. Mann                      5760               (32)                 5728               -
A. Dunoar                  5600               (32)                 5568               -
F Lewis                      4000               (24)                 3976               -
                                    21768
Insurance Balance =2000
Spent in two weeks = 3300
Spent in one week= 1650
Insurance
Details                                                Dr                   Cr
Prepaid                                                                       1650              Â
Bal B/d                                               39600
                                   36300
           Rent for June to August= 6600
           Thus rent fr june =6600/3=2200
Prepaid Rent
Details                                                Dr                   Cr
Rent                                                   4400              Â
Â
Rent expense
Details                                                Dr                   Cr
Bal B/d                                               6600
Prepaid Rent                                                              4400
Â
Advertising une-July= 11000/2= 5500
Advertising expense
           Details                                    Dr                   Cr
                 Bank                                       11000
                 Prepaid advertising                                        5500
                             Bal b/d                                   5500
      Â
Prepaid advertising
           Details                                    Dr                   Cr
                 Advertising expense  5500
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Provision for doubtful debts
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Provision for bad debts
Date               Details                        Amount          Provision for doubtful debt (1%)
June 1             Noosa Estate              11310                         113.1
11                   Buderim                     4070                           40.7
18                   Yandina                     11605                         116.05
25                   Harry mower              13431                        134.31
                                                                                               404.16
Accounts receivable
Details                                                Dr                   Cr
Bal b/d                                                           64
Provision for bad debts                                              404.16
                                                           340.16
Depreciation
MV= straight line=75800-8000/5 = 13560
Motor vehicle-Depreciation
Details                                                Dr                   Cr
Accumulated depreciation                 13560                                                            Â
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Equipment= (14876.15-2000)*48.7%=6270.68
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Equipment- Depreciation
Details                                                Dr                   Cr
Accumulated depreciation                 6270.68
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Furniture= 15000-1000/10= 1400
Furniture-Depreciation
Details                                                Dr                   Cr
Accumulated dep                               1400
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Accumulated Depreciation
Details                                                Dr                   Cr
Equipment dep.                                                          22733.16
Motor vehicle Dep.                                                    13560
Furniture Dep.                                                            1400
                                                                                   37693.16
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Adjustment for internet
Internet and Telephone
           Details                                    Dr                   Cr
                 Bank                                       313.5
                 Prepaid rent line                                             50
                             Bal b/d                                   263.5
      Â
Prepaid rent
           Details                                    Dr                   Cr
                 Internet and telephone                       50
                Â
             Adjustment for electricity
Electricity
           Details                                    Dr                   Cr
                 Electron ltd                            3260
                 Prepaid                                                           1498
                                                                 1762
           Electricity prepaid
           Details                                    Dr                   Cr
                 Prepaid                                   1498
      Â
4. Prepare an Adjusted Trial Balance on the Worksheet provided and complete the worksheet.
RTK Buderim Mowers
Adjusted Trial balance as at 31st June 2016
Details                                                            Dr. ($)                        Cr. ($)
Cash                                                                           101,576
Supplies                                                                                                          620
Sales revenue                                                                                                 104,599
Rent expense                                                              2200
Rent prepaid                                                              4400
Account Receivable                                                   (340.16)
Cash at bank                                                              (109638.97)
Discount received                                                                                          298.30
Accounts payable                                                                                           6450
Ross Drawings                                                                       10,600
Electricity expense                                                     1498
Electricity prepaid                                                      1762
Supplies Expense                                                       220                                                    Â
Purchases                                                                   53240
Service revenue                                                                                                          8,684.23
Discount Allowed                                                      297
Insurance expense                                                      1650
Insurance prepaid                                                       37950
Advertising expense                                                  5500
Advertising prepaid                                                   5500
Cost of service                                                                       2640
Stationery expense                                                     880
Phone and internet expense                                       263.5
Equipment dep.                                                                      22733.16
Prepaid telephone                                                      50
Motor vehicle Dep.                                                    13560
Accumulated Dep.                                                                                         37693.16
Provision for doubtful debts                                      404.16
Furniture Dep.                                                            1400  Â
                                                                                   158,345                      158,345
5. Record all closing entries in the General Journal; however, do not post them to the relevant general ledger accounts until you have checked that the Trial Balance is correct.
Done above
6. Prepare the Income Statement (using the Functional format) for the year ending 30 June 2016.
RTK Buderim Mowers
Income Statement as at 31st June 2016
Details                                    ($)                   ($)
Sales revenue                                                             104,599
Service revenue                                                          8,684.23
Lest cost of sales:
Purchases                                           53,240
Add opening inventory                      54,960
Less: closing inventory                      (42647)
Net purchases                                                             (65553)
Less cost of services                                                  (2640)
Gross Profit                                                                45,090.23
Add: Other income
Discount received                                                      298.30
Less: expenses
Rent expense                                                              (2200)
Electricity expense                                                     (1498)
Supplies Expense                                                       (220)
Discount Allowed                                                      (297)
Insurance expense                                                      (1650)
Advertising expense                                                  (5500)
Stationery expense                                                     (880)
Phone and internet expense                                       (263.5)
Equipment dep.                                                                      (22733.16)
Motor vehicle Dep.                                                    (13560)
Bad debts                                                                   (404.16)
Furniture Dep.                                                            (1400)
           Net profit                                                      (4,918.99)                                                                              Â
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7. Prepare the Statement of Changes in Equity for the year ending 30 June2016.
RTK Buderim Mowers
Statement of Changes in Equity as at 31st June 2016
                                   Share Capital  Retained earnings                  Total equity   Â
($)Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â ($)Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â ($)
Balance B/DÂ Â Â Â Â Â Â Â Â Â Â Â Â Â Â 441,816Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â -Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 441,816
Profit 30th June                                               (4,918.99)
Total                           441,816                      (4,918.99)                               436,897.01                Â
8. Prepare the classified Balance Sheet as at 30 June 2016.
RTK Buderim Mowers
Balance sheet as at 31st June 2016
Details                        ($)                   ($)                              ($)
Non-current Assets                Cost                Acc. Depreciation      Book value
Equipment                              56,527.00       47,921.53                   8,605.47
Motor Vehicle                        75,800            40,680                        35,120
Furniture                                15,000            4,200                         10,800
Total Non-current Assets                                                                   54,525.47
Current Assets
Cash at hand                                                  101,576
Bank overdraft                                               196,201.03
Account receivable                                        54,269.84
Prepaid Electricity                                         1,498 Â
Insurance prepaid                                           37,950
Prepaid advertising                                        5,500 Â
Supplies                                                          180
Closing inventory                                           42,647                        494,647.34
Total Assets                                                                                                              Â
Â
Current Liabilities
Account payable                                                                                51,480
GST Collected                                                                                               28,082
Wages Payable                                                                                   21,768
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Long term liabilities and equity
Drawings                                                                                            (93,100)
Net loss                                                                                              (4,918.99)
Equity                                                                                                441,816
Total equity and Liabilities                                                              494,647.34                                                                          Â
Â
9. Prepare the Cash Flows (Simplified Statement) for the month ending 30June 2016.
a. Note: without the balances as at the 1st July 2015 (or alternatively the Cash Receipts and Cash Payments Journals for the entire year) it is not possible to calculate the proper Statement of Cash Flows!
b. A simplified approach has been provided in the Excel template!
RTK Buderim Mowers
Statement of Cashflows as at 31st June 2016
Details                                                            ($)                             ($)
Operating activities
Profit before tax                                                         (4,918.99)
Working capital changes
Decrease in inventory                                                12,313
Increase in trade payables                                          6,450 Â
Decrease in trade receivables                                     (340.16)
Net cash from operations                                           13,503.85
Financing activities
Drawings                                                                    (10,600)
Net cash increase                                                       2,903.85
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18RTK Buderim Mowers - Practice Set
4. PART B - CRITICAL ANALYSES
You are required to complete the questions that are in the special Test of Knowledge section on Blackboard for the proportion of marks from the major assignment. The questions are pertinent to your completion of the learning from the major assignment and from the application of basic accounting knowledge as well as critical thinking skills.
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