Accounting Assignment Analyzing Business Decisions & Financial Concerns
The questions to be answered in this accounting assignment are:
Evaluate the statement “Accounting is all about numbers.”. Using the definition of accounting to justify your answer.
Financial data for Safety Hire as of 30 June 2019 are:
Required: Prepare an income statement for the month of June and a balance sheet in account format for Safety Hire as at 30 June 2019.
On 1 July 2018 Nicole Andreou opened a beauty parlour. The following transactions occurred during the first month of operations (ignore GST). Use the following account titles and numbers: Cash at Bank, 100; Accounts Receivable, 101; Supplies, 102; Equipment, 103; Loan Payable, 200; Nicole Andreou, Capital, 300; Nicole Andreou, Drawings, 301; Revenue, 400; Rent Expense, 500; Advertising Expense, 501; Insurance Expense, 502; Telephone Expense, 503.
a) Prepare the general journal entries to record the above transactions.
b) Post the entries from the general journal to the general ledger accounts (running balance format) and enter the posting references in the general journal.
c) Prepare a trial balance as at 31 July 2018.
The financial year for Drip Dry Cleaning Services ends on 30 June. Using the following information, make the necessary adjusting entries at year-end. Ignore GST. Ignore Narration.
1. On 15 February, Danielle Drip’s business borrowed $16 000 from Northern Bank at 8% interest. The principal and interest are payable on 15 August.
2. Drip Dry Cleaning Services purchased a 1-year insurance policy on 1 March of the current year for $660. A 3-year policy was purchased on 1 November of the previous year for $2700. Both purchases were recorded by debiting Prepaid Insurance.
3. The business has two part-time employees who each earn $220 a day. They both worked the last 3 days in June for which they have not yet been paid.
4. On 1 June, the Highup Hotel paid the business $2100 in advance for doing their dry cleaning for the next 3 months. This was recorded by a credit to Unearned Dry Cleaning Revenue.
5. The supplies account had a $280 debit balance on 1 July. Supplies of $1560 were purchased during the year and $190 of supplies are on hand as at 30 June.
Required: Prepare the necessary adjusting entries at 30 June.
The adjusted trial balance columns in the worksheet of Elliot Painting Services are as follows.
Accounting AssignmentWeek 1
Accounting can be defined as the process of recording and summarizing the financial and non-financial transactions of the organization in accordance with certain principles and specified standards. Accounting can be divided into several fields including financial accounting, management accounting, external auditing, tax accounting, and cost accounting (Vernimmen 2017). The diverse nature of this process clearly states that it is not just all about numbers.
Accountants are observed to provide many high-value services to their clients instead of just recording the transactions in the books. The process of accounting deals with not only recording the transactions but also improvising the financial status of the agencies (Vernimmen 2017). The Accountants analyze the financial statements of the organization and help its client to make decisions for their operations.
Cost Management Accounting also helps the organization to determine various costs which organ helps manufacturing units to prevent themselves from wastage and overhead losses.
Management accounting helps the organization to determine the managerial tasks and operations after analyzing the internal and external environment of the agency. It is also very helpful for maintaining the ethnicity of the workplace (Warren, Reeve &Duchac 2017). Taxation accounting not only helps the organization to determine the tag that is needed to be paid by the organizations but also helps the organization to reduce it to a certain extent (Warren, Reeve &Duchac 2017). Accountants analyze all the subsidies and exemptions that can be enjoyed by the agency in terms of taxation. Also, the audit facility provided by the accountants helps the agency to earn the respect of investors. Hence, it can be stated that accounting is not just only about numbers as it is having a volatile structure that deals not only with transactions but also other operations of the agencies or the individuals.
Working Note - 1
1) Insurance policy that relates to this FY = (660*(4/12)) + (2700*(8/36)) = $820
Vernimmen, P 2017, Corporate finance : theory and practice. Accounting assignment Fifth edn. Hoboken: Wiley.
Warren, C. S., Reeve, J. M., &Duchac, J. E 2017, Corporate financial accounting , Cengage Learning.