Balance Sheet and Car Wash

Only available on StudyMode
  • Download(s) : 85
  • Published : May 8, 2013
Open Document
Text Preview
ACC1AMD Assignment- Part 2
The assignment is to be completed in groups of 3 and is due by 11.55pm on Sunday, 19th May 2013. Assignments are to be submitted online via the LMS. Each group need to submit only ONE combined answer. Graded assignments will be returned via the LMS and the marks will be recorded in your grade book. It will contribute to 10% of the total marks for this subject.

Shiny Car Wash Pty Ltd was opened on 1 February by Jack Ford. During the first month of operations of the business, these events and transactions occurred: Feb. 1 Shareholders invested $200 000 cash in the business in exchange for shares in the company. 2 Purchased equipment for $150 000 cash.

3 Purchased cleaning supplies of $5 000 for the month from the Cleaning Warehouse Ltd. on a/c. 4 Advertising expenses of $5 000 on account from Advertiser Ltd, to advertise the opening of the business. 5 Paid cash $1 200 for a 1-year insurance policy. 7 Weekly cash takings for car washes of $6 000.

9 Invoiced Rental Car Co. for $1 000, for car wash service for a fleet of cars. 12 Paid rent of $4 000 for the month.
14 Weekly cash takings for car washes of $8 800.
18 Invoiced Rental Car Co. for $1 500, for car wash service for a fleet of cars. 21 Weekly cash takings for car washes of $10 300.
24 Paid cash dividend of $1 000.
25 Rental Car Co. paid the invoice from the 9th of Feb. 26 Paid the 4th Feb account from Advertiser Ltd.
27 Paid salaries of $6 000 for the month.
28 Weekly cash takings for car washes of $13 500.

Shiny Car Wash Pty Ltd uses these accounts: (100) Cash, (110) Accounts Receivable, (120) Prepaid Insurance, (130) Equipment, (200) Accounts Payable, (300) Share Capital, (310) Dividends, (400) Revenue, (500) Cleaning Supplies Expense, (510) Advertising Expense, (520) Rent Expense, (530) Salaries Expense, (540) Insurance Expense.

REQUIRED:
a) Journalise the transactions, including narrations. (Also, journalise the adjustment to transfer an amount from Prepaid Insurance a/c to the Insurance Expense a/c for the month of Feb.) b) Post the Journals to the Ledger a/c’s.

c) Prepare a Trial Balance as at the 28th February 2013.

d) Prepare an Income Statement for the month of February 2013.

e) Prepare a classified Statement of Financial Position as at 28th February 2013.

Use the templates provided below for your answer. Your assignment should be in a report format layout, to include a: o Title page
o Executive summary
o Table of contents
o Introduction
o The body
o Conclusions
o List of references
o Appendices

a) Journal entries:-

|Date |Account Titles and Explanation |Ref |Debit |Credit | | | | |$ |$ | |Feb | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |...
tracking img