Date |
Assets |
Liabilities |
Owner’s equity |
April 1 |
Cash increased by $160,000 |
|
Capital increased by $160,000 |
April 2 |
Cash decreased by $36,000 |
Land & building increased by $360,000 |
Long term loan increased by $324,000 |
April 3 |
Cash decreased by $21,600, Prepaid expenses increased by $3,600, Office equipment increased by $18,000 |
|
|
April 4 |
Cash decreased by $5,400, Prepaid expenses increased by $2,400, office stationery increased by $860 |
Accounts payable increased by $860 |
|
April 5 |
Motor Vehicle increased by $30,000 |
Accounts payable increased by $30,000 |
|
April 12 |
Accounts receivable increased by $2,000 |
|
Revenue increased by $2,000 |
April 13 |
Computer Equipment increased by $4,500 |
|
Capital increased by $4,500 |
April 16 |
Accounts receivable increased by $3,500 |
|
Revenue increased by $3,500 |
April 17 |
Cash increased by $2,000, accounts receivable decreased by $2,000 |
|
|
April 30 |
Cash decreased by $2,800 |
Long term loan decreased by $1600 |
Interest expenses increased by $1200 |
May 1 |
Cash decreased by $2,400, accounts receivable increased by $9,800 |
|
Drawings increased by $2400, revenue increased by $9,800 |
May 3 |
Cash decreased by $860 |
Accounts payable decreased by $860 |
|
May 10 |
Cash decreased by $900 |
PAYG tax liability increased by $300 |
Wages expense increased by $1200 |
May 24 |
Cash increased by $5,800, accounts receivable decreased by $5,800 |
|
|
May 26 |
Cash decreased by $320 |
|
Telephone & internet expenses increased by $320 |
May 30 |
Cash decreased by $2800 |
Long term loan decreased by $1600 |
Interest expenses increased by $1200 |
June 2 |
Accounts receivable increased by $9,200 |
|
Revenue increased by $9,200 |
June 9 |
Cash decreased by $1300 |
PAYG tax liability increased by $500 |
Wages expense increased by $1800 |
June 16 |
Cash increased by $7820, accounts receivable decreased by $8400 |
|
Motor vehicle expenses increased by $580 |
June 25 |
Cash decreased by $2800 |
|
Drawings increased by $2800 |
June 30 |
Cash decreased by $2800 |
Long term loan decreased by $1600 |
Interest expenses increased by $1200 |
June 30 |
Accumulated depreciation office equipment increased by $1350 |
|
Depreciation expense increased by $1350 |
June 30 |
Accumulated depreciation furniture increased by $75 |
|
Depreciation expense increased by $75 |
June 30 |
Accumulated depreciation computer equipment increased by $338 |
|
Depreciation expense increased by $338 |
June 30 |
Accumulated depreciation motor vehicle increased by $1500 |
|
Depreciation expense increased by $1500 |
June 30 |
Prepaid expenses decreased by $2400 |
|
Expenses increased by $2400 |
June 30 |
Office stationery decreased by $500 |
|
Office stationery expense increased by $500 |
June 30 |
|
Utilities payable increased by $680 |
Utilities expense increased by $680 |
Park Health |
||
Income Statement |
||
For the Quarter ended 30 June, 2018 |
||
|
|
|
Sales |
|
$ 24,500 |
Less: Expenses |
|
|
Wages expenses |
$ 3,000 |
|
Professional Indemnity Insurance |
$ 600 |
|
Telephone & Internet Expense |
$ 320 |
|
Motor Vehicle expense |
$ 580 |
|
Medical Journals subscription expense |
$ 1,800 |
|
Office stationery |
$ 500 |
|
Utilities expense |
$ 680 |
|
Depreciation - Office Equipment |
$ 1,350 |
|
Depreciation - Office Furniture |
$ 75 |
|
Depreciation - Computer Equipment |
$ 338 |
|
Depreciation - Motor Vehicle |
$ 1,500 |
|
Interest Expenses |
$ 3,600 |
$ 14,343 |
|
|
|
Net Profit |
|
$ 10,158 |
Park Health |
|||
Balance Sheet |
|||
As at 30 June, 2018 |
|||
|
|
|
|
ASSETS |
|
LIABILITIES |
|
Current |
|
Current |
|
Cash at Bank |
$ 95,640 |
Accounts payable |
$ 30,000 |
Accounts receivable |
$ 8,300 |
PAYG payable |
$ 800 |
Prepaid expenses |
$ 3,600 |
Utilities payable |
$ 680 |
Office Stationery |
$ 360 |
|
|
|
$ 107,900 |
|
$ 31,480 |
Non-Current |
|
Non-Current |
|
Land and Buildings |
$ 360,000 |
Long-term debt |
$319,200 |
Office Equipment |
$ 18,000 |
|
$319,200 |
Accumulated Depreciation - Office Equipment |
$ (1,350) |
|
|
Office Furniture |
$ 3,000 |
OWNER'S EQUITY |
|
Accumulated Depreciation - Office Furniture |
$ (75) |
Owner's investment |
$164,500 |
Computer Equipment |
$ 4,500 |
Drawings |
$ (5,200) |
Accumulated Depreciation - Computer Equipment |
$ (338) |
Retained earnings |
$ 10,158 |
Motor Vehicle |
$ 30,000 |
|
|
Accumulated Depreciation - Motor Vehicle |
$ (1,500) |
|
|
|
$ 412,238 |
|
$169,458 |
|
|
|
|
|
$ 520,138 |
|
$520,138 |
Every business has some setup structure and forms in which it is run. The two such common forms are sole proprietorship and proprietary limited company. Let’s discuss these forms in details.
Sole proprietorship is an individual business setup in which the owner or sole proprietor is responsible for everything be it income, expenses, assets, liabilities, profits or losses. The profit earned or loss incurred belongs to the owner only. The biggest disadvantage of this kind of structure is that it bears an unlimited liability status. It means that, in case the proprietorship is not able to pay the dues of the business, than the owner will be personally liable for all the dues. In other words, the personal assets of the owner can also be attached in case of bankruptcy of proprietorship firm.
Another form of business structure is proprietary limited company. This form enjoys the benefits of proprietorship structure along with the benefit of limited liability. Meaning thereby the liability of shareholders is limited to the amount of capital contributed by them. In case of default by the company in payment of its dues, then the shareholders are liable for payment up to the amount of capital contributed by them only. This structure can have one shareholder or director or multiple shareholder or director.
In the given case, the Park has concerns regarding the unlimited liability status of a sole trader and thus wanted to move on proprietary limited company. Further, she will be the only shareholder and director of the company. Basis on above discussion, it will be beneficial for the Park to move onto the proprietary limited company, as she is the only shareholder or director, means the entire profit or loss will be of her, further her liability will become limited to the extent of capital contribution made by her. However, this facility of having limited liability can be taken away in few cases. In other words, in following cases, the directors are personally liable for the dues of the business and their liability status becomes unlimited.
These cases are as below:
Company Debt. (2018). Can Directors Be Personally Liable For Ltd Company Debts?. [online] Available at: https://www.companydebt.com/articles/could-you-be-held-personally-liable-for-your-business-debts/ [Accessed 13 Aug. 2018].
Rapsey Griffiths. (2018). 5 reasons a company director could be made liable for its debts. [online] Available at: https://rapseygriffiths.com.au/blog/director-liable-compadebts-insolvency-newcastle-nsw/ [Accessed 13 Aug. 2018]
Asic.gov.au. (2018). Directors' liabilities when things go wrong | ASIC - Australian Securities and Investments Commission. [online] Available at: https://asic.gov.au/for-business/your-business/tools-and-resources-for-business-names-and-companies/asic-guide-for-small-business-directors/directors-liabilities-when-things-go-wrong/ [Accessed 13 Aug. 2018]
To export a reference to this article please select a referencing stye below:
My Assignment Help. (2021). Financial Interpretation. Retrieved from https://myassignmenthelp.com/free-samples/mpa702-financial-interpretation/transaction-analysis.html.
"Financial Interpretation." My Assignment Help, 2021, https://myassignmenthelp.com/free-samples/mpa702-financial-interpretation/transaction-analysis.html.
My Assignment Help (2021) Financial Interpretation [Online]. Available from: https://myassignmenthelp.com/free-samples/mpa702-financial-interpretation/transaction-analysis.html
[Accessed 19 April 2021].
My Assignment Help. 'Financial Interpretation' (My Assignment Help, 2021) <https://myassignmenthelp.com/free-samples/mpa702-financial-interpretation/transaction-analysis.html> accessed 19 April 2021.
My Assignment Help. Financial Interpretation [Internet]. My Assignment Help. 2021 [cited 19 April 2021]. Available from: https://myassignmenthelp.com/free-samples/mpa702-financial-interpretation/transaction-analysis.html.
MyAssignmenthelp.com offers affordable marketing assignment help to students all over the world. We have a strong team of 5000+ marketing experts who draft every paper from scratch. They dig deep to gather facts and information to present quality marketing papers. We also cover all assignments – research papers, dissertation, marketing reports, and more. Hire our writers today at the best rates and see your scores soar to the sky.
Answer: This report emphasizes upon the capital structure, market value and valuation methods which could be used to analyze the market price of the shares of two companies. In this report, two companies named, Telstra and Wesfarmers Company have been selected. Each and every company needs to keep its financial leverage low and profitability high if it wants to survive in long run. It will allow company to sustain its business in long run. Pa...
Read MoreAnswer Enhancing Return for Shareholders: Dividend-Paying vs. Growth Firms Enhancing Return for Shareholders Earnings through regular dividends or through reinvesting in the way of capital gains of the share price both act as a form of return for the investor and are different in there factors for thinking and approaching the same. The reinvestment of the dividend by the high growth firms often reinvests the dividend proceeds in the operat...
Read MoreAnswer: Introduction: The overall assessment aims in detecting the current financial performance of Pan Africa Resources PLC for the financial year of 2016 and 2017. The financial ratios have been taken into consideration, which helps in depicting the level of progress that has been made by the organisation over the fiscal years. In addition, the corporate governance status of the company is also evaluated to understand the current operations...
Read MoreAnswer Background A report has been prepared on the argument that whether the Black Scholes model will give incorrect valuation for options having longer maturities as mentioned by Warren Buffet in some of the address to the shareholders. The report also discusses on the mathematical terminology being proposed and put forward by him and the argument that the put price will be exceedingly high is valid or not. Finally, a section of the r...
Read MoreAnswer: The stock market provides important information about the stock prices of different companies along with accumulative movement of stock index. The objective of the document is to provide the readers with necessary information to assess the performance of Agthia Group Stock and the general index of ADI. The stock price movements of the Agthia stock along with the ADI general index movement shall be tracked to assess the performance of t...
Read MoreJust share requirement and get customized Solution.
Orders
Overall Rating
Experts
Our writers make sure that all orders are submitted, prior to the deadline.
Using reliable plagiarism detection software, Turnitin.com.We only provide customized 100 percent original papers.
Feel free to contact our assignment writing services any time via phone, email or live chat. If you are unable to calculate word count online, ask our customer executives.
Our writers can provide you professional writing assistance on any subject at any level.
Our best price guarantee ensures that the features we offer cannot be matched by any of the competitors.
Get all your documents checked for plagiarism or duplicacy with us.
Get different kinds of essays typed in minutes with clicks.
Calculate your semester grades and cumulative GPa with our GPA Calculator.
Balance any chemical equation in minutes just by entering the formula.
Calculate the number of words and number of pages of all your academic documents.
Our Mission Client Satisfaction
THANK YOU SO MUCH FOR YOUR ASSISTANCE AND HELP DURING THESE TIMES! YOU ARE ALL AMAZING
Australia
happy with the work happy with the work happy with the work happy with happy with the work h the work happy with the work happy with the work happy with the work happy with the work happy with the work happy with the work happy with the work happy wi...
Australia
happy with the work ,happy with the work happy with the work happy with the work happy with the work happy with the work happy with the work happy with the work happy with the work happy with the work happy with the work happy with the work happy wit...
Australia
Written really well and answered the questions well. Straight to the point and citations are placed well. Well informated.
Australia