ACC106 Introduction To Financial Accounting

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22-03-2021

Question:

Describe Nelly’s Saddlery pays employee wages on a weekly basis. Wages are paid on the Thursday for the previous week. The sales assistant is full time and earns a weekly wage and works Tuesday to Saturday. The saddler is employed on a casual basis and is paid hourly. All employees are paid employer superannuation contribution to their nominated superannuation funds at the rate of 9.5% of gross salary (before deductions). The employees are being paid into the same superannuation fund through an online portal (this means you can account for all superannuation together).

Date	Particulars	Debits				Credits
		Cash at Bank	Cost of Sales	Discount Allowed Expense		Accounts Receivable (inc GST)	Inventory	Sales Revenue	Service Revenue	Unearned Service Revenue	Other Accounts		GST Collected
				Discount Allowed Expense							Other Accounts
				GST Collected	Net						Account Name	Amt ex GST
				GST Collected	Net						Account Name	Amt ex GST
01-06-2018	Est business	$ 1,20,000.00									Capital	$ 1,20,000.00
07-06-2018	All Purpose & Suede sale	$ 6,732.00	$ 1,810.00				$ 1,810.00	$ 6,120.00					$ 612.00
09-06-2018	Service revenue	$ 2,541.00							$ 2,310.00				$ 231.00
12-06-2018	Clancey's Pony club	$ 8,710.24		$ 16.16	$ 161.60	$ 8,888.00
13-06-2018	Top Tack Rugs	$ 792.00	$ 320.00				$ 320.00	$ 720.00					$ 72.00
21-06-2018	Service revenue	$ 3,740.00							$ 3,400.00				$ 340.00
21-06-2018	Unearned Service Revenue	$ 8,690.00								$ 7,900.00			$ 790.00
25-06-2018	Mr. Banjo	$ 4,000.00				$ 4,000.00

Total columns here		$ 1,55,205.24	$ 2,130.00	$ 16.16	$ 161.60	$ 12,888.00	$ 2,130.00	$ 6,840.00	$ 5,710.00	$ 7,900.00	$ -	$ 1,20,000.00	$ 2,045.00








SALES JOURNAL—JUNE
			Credit		Debit	Credit	Debit
Date		Details	Sales Revenue	GST Collected	Accounts Receivable	Inventory	Cost of Sales
Date		Details	Sales Revenue	GST Collected	Accounts Receivable	Inventory	Cost of Sales
05-06-2018		Clancey's Pony Club	$ 3,200.00	$ 320.00	$ 3,520.00	$ 1,000.00	$ 1,000.00
08-06-2018		Mr. Banjo	$ 2,440.00	$ 244.00	$ 2,684.00	$ 795.00	$ 795.00
09-06-2018		Clancey's Pony Club	$ 4,880.00	$ 488.00	$ 5,368.00	$ 1,590.00	$ 1,590.00
20-06-2018		Mr. Banjo	$ 2,900.00	$ 290.00	$ 3,190.00	$ 1,657.14	$ 1,657.14
21-06-2018		Miss Sunshine	$ 2,530.00	$ 253.00	$ 2,783.00	$ 835.00	$ 835.00



		Total columns here	$ 15,950.00	$ 1,595.00	$ 17,545.00	$ 5,877.14	$ 5,877.14

				DR	$ 23,422.14
				CR	$ 23,422.14
				difference	$ -

PURCHASES JOURNAL —JUNE
			Debit				Debit	Credit
Date		Details	Inventory	Vehicles	Computer Systems	Office Furniture	GST Paid	Accounts Payable
Date		Details	Inventory	Vehicles	Computer Systems	Office Furniture	GST Paid	Accounts Payable
01-06-2018		Tmart Purchase				$ 21,200.00	$ 2,120.00	$ 23,320.00
02-06-2018		Saddle Seat Traders	$ 6,240.00				$ 624.00	$ 6,864.00
02-06-2018		Tec Time			$ 20,900.00		$ 2,090.00	$ 22,990.00
03-06-2018		Mitsubishi		$ 23,620.00			$ 2,362.00	$ 25,982.00
07-06-2018		Saddle Seat Traders	$ 2,340.00				$ 234.00	$ 2,574.00
23-06-2018



		Total columns here	$ 8,580.00	$ 23,620.00	$ 20,900.00	$ 21,200.00	$ 7,430.00	$ 81,730.00
							$ 81,730.00	$ 81,730.00	difference


							DR	$ 81,730.00
							CR	$ 81,730.00
							difference	$ -


GENERAL JOURNAL
Date		Details	Debit	Credit
ADJUSTING ENTRIES
June	30	Supplies Expense	$ 1,332.00
		Supplies		$ 1,332.00

June	30	Wages expenses	$ 1,742.05
		GST Paid	$ 174.20
		Wages Payable		$ 1,450.00
		PAYG Tax Payable		$ 278.00
		Private Health Payable		$ 22.00
		Employer Super Payable		$ 166.25
		Wages expenses payable

June	30	Depreciation Expense	$ 1,241.47
		Accum Dep - Office		$ 353.33
		Accum Dep - Computer		$ 435.42
		Accum Dep - Vehicles		$ 452.72

june	30	Rent Expense	$ 650.00
		Prepaid rent		$ 650.00

June	30	Unearned Service Revenue	$ 2,633.33
		Service Revenue		$ 2,633.33

June	30	Doubtful Debts expense	$ 232.85
		Allowance for Doubtful Debts		$ 232.85

			$ 8,005.90	$ 8,005.90

CLOSING ENTRIES

June	30	Sales Revenue	$ 22,790.00
		Discount Received	$ 52.25
		Service Revenue	$ 8,343.33
		Profit and loss statement		$ 31,185.58

June	30	Profit and loss statement	$ 20,432.53
		Cost of Sales		$ 8,007.14
		Advertising Expense		$ 1,500.00
		Electricity Expense		$ 263.64
		Doubtful Debts expense		$ 232.85
		Discount Allowed Expense		$ 161.60
		Wages Expense		$ 7,043.84
		Supplies Expense		$ 1,332.00
		Rent Expense		$ 650.00
		Depreciation Expense		$ 1,241.47

June	30	Profit and loss statement	$ 10,753.05
		N Gee, Capital		$ 10,753.05










			$ 62,371.17	$ 62,371.17


Schedule of Accounts Receivable						Schedule of Accounts Payable
as at 30 June 2018						as at 30 June 2018

Account Name		Amount	5%			Account Name		Amount
Clancey's Pony Club		$ -	$ -			Tmart		$ 23,320.00
Mr Banjo		$ 1,874.00	$ 93.70			SaddleSeat Traders		$ 9,438.00
Miss Sunshine		$ 2,783.00	$ 139.15			Techtime		$ 21,074.17
						Mitsubhishi		$ 25,982.00

Total		$ 4,657.00	$ 232.85			Total		$ 79,814.17


Amount showing in Accounts Receivable General Ledger Trial Balance			$ 4,657.00			Amount showing in Accounts Payable General Ledger Trial Balance			$ 79,814.17
Difference between Schedule total and General Ledger balance			$ -			Difference between Schedule total and General Ledger balance			$ -

ACCOUNTS RECEIVABLE SUBSIDIARY LEDGER						ACCOUNTS PAYABLE SUBSIDIARY LEDGER
Clancey's Pony Club						Tmart
Date	Details	Debit	Credit	Balance		Date	Details	Debit	Credit	Balance
05-06-2018	1x Suede Seat	$ 3,520.00		$ 3,520.00		01-06-2018	Office Furniture		$ 23,320.00	$ 23,320.00
09-06-2018	2x All purpose saddles	$ 5,368.00		$ 8,888.00						$ 23,320.00
12-06-2018	Cash		$ 8,888.00	$ -						$ 23,320.00
				$ -						$ 23,320.00
				$ -						$ 23,320.00


Mr Banjo						SaddleSeat Traders
Date	Details	Debit	Credit	Balance		Date	Details	Debit	Credit	Balance
08-06-2018	1x All purpose saddles	$ 2,684.00		$ 2,684.00		02-06-2018	4x All purpose saddles		$ 3,564.00	$ 3,564.00
20-06-2018	2x Suede Seat Saddles	$ 3,190.00		$ 5,874.00		02-06-2018	3x Suede Seat saddles		$ 3,300.00	$ 6,864.00
25-06-2018	cash received		$ 4,000.00	$ 1,874.00		07-06-2018	3x All purpose saddles		$ 2,574.00	$ 9,438.00
				$ 1,874.00						$ 9,438.00
				$ 1,874.00						$ 9,438.00


Miss Sunshine						Techtime
Date	Details	Debit	Credit	Balance		Date	Details	Debit	Credit	Balance
05-06-2018	1x All purpose saddles	$ 2,783.00		$ 2,783.00		02-06-2018	computre system		$ 22,990.00	$ 22,990.00
				$ 2,783.00		27-06-2018	monthly repayment	$ 1,915.83		$ 21,074.17
				$ 2,783.00						$ 21,074.17
				$ 2,783.00						$ 21,074.17
				$ 2,783.00						$ 21,074.17


						Mitsubhishi
						Date	Details	Debit	Credit	Balance
						03-06-2018	Utility		$ 25,982.00	$ 25,982.00
										$ 25,982.00
										$ 25,982.00
										$ 25,982.00
										$ 25,982.00


Inventory Reconciliation
30-Jun-18
Item Number	On Hand $
All Purpose Saddle	$ 1,590.00
Suede Seat Saddles	$ 4,142.86
Top Tack Rugs	$ 440.00
Total	$ 6,172.86
Link to General Ledger Inventory	$ 6,172.86
Difference	$ -


All Purpose Saddle	Purchases			Cost of Sales			Inventory on Hand
Date	Unit No.	Unit Cost	Total cost	Unit No.	Unit Cost	Total	Unit No.	Unit Cost	Total cost
	Unit No.	Unit Cost	Total cost	Unit No.	Unit Cost	Cost	Unit No.	Unit Cost	Total cost
02-Jun	4	$ 810.00	$ 3,240.00				4	$ 810.00	$ 3,240.00
07-Jun			$ -	1	$ 810.00	$ 810.00	3	$ 810.00	$ 2,430.00
07-Jun	3	$ 780.00	$ 2,340.00			$ -	6	$ 795.00	$ 4,770.00
08-Jun			$ -	1	$ 795.00	$ 795.00	5	$ 795.00	$ 3,975.00
09-Jun			$ -	2	$ 795.00	$ 1,590.00	3	$ 795.00	$ 2,385.00
21-Jun			$ -	1	$ 795.00	$ 795.00	2	$ 795.00	$ 1,590.00



Suede Seat Saddles	Purchases			Cost of Sales			Inventory on Hand
Date	Unit No.	Unit Cost	Total cost	Unit No.	Unit Cost	Total	Unit No.	Unit Cost	Total cost
	Unit No.	Unit Cost	Total cost	Unit No.	Unit Cost	Cost	Unit No.	Unit Cost	Total cost
02-Jun	3	$ 1,000.00	$ 3,000.00				3	$ 1,000.00	$ 3,000.00
05-Jun			$ -	1	$ 1,000.00	$ 1,000.00	2	$ 1,000.00	$ 2,000.00
07-Jun			$ -	1	$ 1,000.00	$ 1,000.00	1	$ 1,000.00	$ 1,000.00
10-Jun	6	$ 800.00	$ 4,800.00			$ -	7	$ 828.57	$ 5,800.00
20-Jun			$ -	2	$ 828.57	$ 1,657.14	5	$ 828.57	$ 4,142.86



Top Tack Rugs	Purchases			Cost of Sales			Inventory on Hand
Date	Unit No.	Unit Cost	Total cost	Unit No.	Unit Cost	Total	Unit No.	Unit Cost	Total cost
	Unit No.	Unit Cost	Total cost	Unit No.	Unit Cost	Cost	Unit No.	Unit Cost	Total cost
10-Jun	20	$ 40.00	$ 800.00				20	$ 40.00	$ 800.00
13-Jun			$ -	8	$ 40.00	$ 320.00	12	$ 40.00	$ 480.00
21-Jun			$ -	1	$ 40.00	$ 40.00	11	$ 40.00	$ 440.00




ASSETS						LIABILITIES						OWNERS' EQUITY
Cash at bank						Accounts Payable						Capital
Date	Details	Debit	Credit	Balance		Date	Details	Debit	Credit	Balance		Date	Details	Debit	Credit	Balance
June	CRJ	$ 1,55,205.24		$ 1,55,205.24		June	PJ		$ 81,730.00	$ 81,730.00		June	CRJ		########	$1,20,000.00
June	CPJ		$ 22,034.36	$ 1,33,170.88		June	CPJ	$ 1,915.83		$ 79,814.17						$1,20,000.00
June				$ 1,33,170.88						$ 79,814.17						$1,20,000.00
June				$ 1,33,170.88						$ 79,814.17						$1,20,000.00
June				$ 1,33,170.88						$ 79,814.17						$1,20,000.00
				$ 1,33,170.88						$ 79,814.17
				$ 1,33,170.88						$ 79,814.17
				$ 1,33,170.88						$ 79,814.17


Accounts receivables						Allowance for Doubtful Debts						Drawings
Date	Details	Debit	Credit	Balance		Date	Details	Debit	Credit	Balance		Date	Details	Debit	Credit	Balance
June	SJ	$ 17,545.00		$ 17,545.00		June	Doubtful Debts expense		$ 232.85	$ 232.85		June	CPJ	$1,300.00		$ 1,300.00
June	CRJ		$ 12,888.00	$ 4,657.00						$ 232.85						$ 1,300.00
				$ 4,657.00												$ 1,300.00
				$ 4,657.00												$ 1,300.00
				$ 4,657.00		Accum Dep - Office										$ 1,300.00
				$ 4,657.00		Date	Details	Debit	Credit	Balance						$ 1,300.00
				$ 4,657.00		June	Depreciation Expense		$ 353.33	$ 353.33						$ -
				$ 4,657.00						$ 353.33


Supplies						Accum Dep - Computer
Date	Details	Debit	Credit	Balance		Date	Details	Debit	Credit	Balance
June	CPJ	$ 3,200.00		$ 3,200.00		June	Depreciation Expense		$ 435.42	$ 435.42
June	Supplies Expense		$ 1,332.00	$ 1,868.00						$ 435.42
				$ 1,868.00

						Accum Dep - Vehicles
Inventory						Date	Details	Debit	Credit	Balance
Date	Details	Debit	Credit	Balance		June	Depreciation Expense		$ 452.72	$ 452.72
June	CPJ	$ 5,600.00		$ 5,600.00						$ 452.72
June	CRJ		$ 2,130.00	$ 3,470.00
June	PJ	$ 8,580.00		$ 12,050.00
June	SJ		$ 5,877.14	$ 6,172.86		GST Collected
				$ 6,172.86		Date	Details	Debit	Credit	Balance
				$ 6,172.86		June	CRJ		$ 2,045.00	$ 2,045.00
				$ 6,172.86		JUne	CRJ	$ 16.16		$ 2,028.84
				$ 6,172.86		June	SJ		$ 1,595.00	$ 3,623.84
										$ 3,623.84
										$ 3,623.84
Prepaid rent										$ 3,623.84
Date	Details	Debit	Credit	Balance						$ 3,623.84
June	CPJ	$ 2,600.00		$ 2,600.00						$ 3,623.84
JUne	Rent Expense		$ 650.00	$ 1,950.00
				$ 1,950.00
						Unearned Service Revenue
						Date	Details	Debit	Credit	Balance
GST Paid						June	CRJ		$ 7,900.00	$ 7,900.00
Date	Details	Debit	Credit	Balance			Unearned Service Revenue	$ 2,633.33		$ 5,266.67
June	CPJ	$ 1,846.54		$ 1,846.54
June	CPJ		$ 5.22	$ 1,841.32
JUne	PJ	$ 7,430.00		$ 9,271.32		PAYG Tax Payable
June	Oustanding wages	$ 174.20		$ 9,445.52		Date	Details	Debit	Credit	Balance
				$ 9,445.52		June	CPJ		$ 864.00	$ 864.00
				$ 9,445.52		June	Oustanding wages		$ 278.00	$ 1,142.00
				$ 9,445.52
				$ 9,445.52
						Superannuation Payable
						Date	Details	Debit	Credit	Balance
Office Equipment						June	CPJ		$ 505.97	$ 505.97
Date	Details	Debit	Credit	Balance		June	Oustanding wages		$ 166.25	$ 672.22
June	PJ	$ 21,200.00		$ 21,200.00
				$ 21,200.00
				$ 21,200.00		Private health Payable
						Date	Details	Debit	Credit	Balance
						June	CPJ		$ 66.00	$ 66.00
Computer Systems						June	Oustanding wages		$ 22.00	$ 88.00
Date	Details	Debit	Credit	Balance
June	PJ	$ 20,900.00		$ 20,900.00
				$ 20,900.00		Wages Payable
				$ 20,900.00		Date	Details	Debit	Credit	Balance
						June	Oustanding wages		$ 1,450.00	$ 1,450.00
										$ 1,450.00

						Trial Balance
						As At 30/6/2018
						Account Name	Dr	Cr
						Cash at Bank	$ 1,33,170.88
						Accounts Receivable	$ 4,657.00
						Allowance for Doubtful Debts
						Supplies	$ 3,200.00
						Inventory	$ 6,172.86
						Prepaid rent	$ 2,600.00
						GST Paid	$ 9,271.32
						Office Equipment	$ 21,200.00
						Accum Dep - Office
						Computer Systems	$ 20,900.00
						Accum Dep - Computer
						Vehicles	$ 23,620.00
						Accum Dep - Vehicles
						Accounts Payable		$ 79,814.17
						GST Collected		$ 3,623.84
						Unearned Service Revenue		$ 7,900.00
						PAYG Tax Payable		$ 864.00
						Superannuation Payable		$ 505.97
						Private health Payable		$ 66.00
						Wages Payable
						N Gee, Capital		$ 1,20,000.00
						N Gee, Drawings	$ 1,300.00
						Sales Revenue		$ 22,790.00
						Discount Received		$ 52.25
						Service Revenue		$ 5,710.00
						Cost of Sales	$ 8,007.14
						Advertising Expense	$ 1,500.00
						Electriciy Expense	$ 263.64
						Doubtful Debts expense
						Discount Allowed Expense	$ 161.60
						Wages Expense	$ 5,301.79
						Supplies Expense
						Rent Expense
						Depreciation Expense

						Total	$ 2,41,326.23	$ 2,41,326.23



						FINANCIAL STATEMENTS
						Income Statement
						Sales Revenue	$ 22,790.00
						Service Revenue	$ 8,343.33
						total revenue		$ 31,133.33
						Less: Cost of Sales		$ 8,007.14
						Cost of goods sold		$ 23,126.19
						Add:
						Discount Received	$ 52.25	$ 52.25
						Less:
						Advertising Expense	$ 1,500.00
						Electricity Expense	$ 263.64
						Doubtful Debts expense	$ 232.85
						Discount Allowed Expense	$ 161.60
						Wages Expense	$ 7,043.84
						Supplies Expense	$ 1,332.00
						Rent Expense	$ 650.00
						Depreciation Expense	$ 1,241.47
						Total expenses		$ 12,425.39
						Net income		$ 10,753.05

						Balance sheet
						Assets
						Current assets
						Cash at Bank		$ 1,33,170.88
						Accounts Receivable	$ 4,657.00
						Allowance for Doubtful Debts	$ 232.85	$ 4,424.15
						Supplies		$ 1,868.00
						Inventory		$ 6,172.86
						Prepaid rent		$ 1,950.00
						GST Paid		$ 9,445.52
						Total current assets			$ 1,57,031.41
						Non-current assets
						Office Equipment	$ 21,200.00
						Accum Dep - Office	$ 353.33	$ 20,846.67
						Computer Systems	$ 20,900.00
						Accum Dep - Computer	$ 435.42	$ 20,464.58
						Vehicles	$ 23,620.00
						Accum Dep - Vehicles	$ 452.72	$ 23,167.28
						Total non-current assets			$ 64,478.53
						Total assets			$ 2,21,509.94
						Liabilities and equity
						Liabilities
						Accounts Payable		$ 79,814.17
						GST Collected		$ 3,623.84
						Unearned Service Revenue		$ 5,266.67
						PAYG Tax Payable		$ 1,142.00
						Superannuation Payable		$ 672.22
						Private health Payable		$ 88.00
						Wages Payable		$ 1,450.00
						Total liabilities			$ 92,056.89
						Equity
						N Gee, Capital		$ 1,29,453.05
						Total equity			$ 1,29,453.05
						Total liabilities and equity			$ 2,21,509.94

						Changes in equity
						N Gee, Capital 1 july	$ 1,20,000.00
						Add: Profit	$ 10,753.05
							$ 1,30,753.05
						Less: Drawings	-$ 1,300.00
						N Gee, Capital 30 june	$ 1,29,453.05


						Depreciation						reducing balance method
							R/B rate	R/Val	Life/yrs	Net value
						Office Furniture	20%	$ 2,200.00	10	$ 21,200.00
						R/B	Rate	B/Val	Dep/yr	Acc Dep	C/V		1 month
						1	20.00%	$ 21,200.00	$ 4,240.00	$ 4,240.00	$ 16,960.00		$ 353.33
						2	20.00%	$ 16,960.00	$ 3,392.00	$ 7,632.00	$ 13,568.00					`=
						3	20.00%	$ 13,568.00	$ 2,713.60	$ 10,345.60	$ 10,854.40					`=
						4	20.00%	$ 10,854.40	$ 2,170.88	$ 12,516.48	$ 8,683.52
						5	20.00%	$ 8,683.52	$ 1,736.70	$ 14,253.18	$ 6,946.82
						6	20.00%	$ 6,946.82	$ 1,389.36	$ 15,642.55	$ 5,557.45
						7	20.00%	$ 5,557.45	$ 1,111.49	$ 16,754.04	$ 4,445.96
						8	20.00%	$ 4,445.96	$ 889.19	$ 17,643.23	$ 3,556.77
						9	20.00%	$ 3,556.77	$ 711.35	$ 18,354.58	$ 2,845.42
						10	20.00%	$ 2,845.42	$ 645.42	$ 19,000.00	$ 2,200.00	$ 645.42


						Computer Sys		S/Val	Life/hrs	Net value		Straight Line
						S/L		$ -	4	$ 20,900.00			1 month
								Actual	Dep/yr	Acc Dep	C/V		$ 435.42
						1		$ 20,900.00	$ 5,225.00	$ 5,225.00	$ 15,675.00
						2		$ 15,675.00	$ 5,225.00	$ 10,450.00	$ 10,450.00
						3		$ 10,450.00	$ 5,225.00	$ 15,675.00	$ 5,225.00
						4		$ 5,225.00	$ 5,225.00	$ 20,900.00	$ -
						5


												$ 20,900.00


						Vehicles	R/B rate	R/Val	Life/yrs	Net value		reducing balance method
						R/B	23%	$ 3,000.00	8	$ 23,620.00
							Rate	B/Val	Dep/yr	Acc Dep	C/V
						1	23.00%	$ 23,620.00	$ 5,432.60	$ 5,432.60	$ 18,187.40		1 month
						2	23.00%	$ 18,187.40	$ 4,183.10	$ 9,615.70	$ 14,004.30		$ 452.72
						3	23.00%	$ 14,004.30	$ 3,220.99	$ 12,836.69	$ 10,783.31
						4	23.00%	$ 10,783.31	$ 2,480.16	$ 15,316.85	$ 8,303.15
						5	23.00%	$ 8,303.15	$ 1,909.72	$ 17,226.58	$ 6,393.42					`=
						6	23.00%	$ 6,393.42	$ 1,470.49	$ 18,697.06	$ 4,922.94					`=
						7	23.00%	$ 4,922.94	$ 1,132.28	$ 19,829.34	$ 3,790.66
						8	23.00%	$ 3,790.66	$ 790.66	$ 20,620.00	$ 3,000.00

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ACC106 Introduction To Financial Accounting

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