Individual Assignment 1: Accounting Basics

Topics: Balance sheet, Generally Accepted Accounting Principles, Liability Pages: 4 (605 words) Published: September 3, 2013
Tick Pty Ltd is in the business of selling clocks, as well as providing services to fix them. The balance sheet for Tick Pty Ltd as at 1st July 2011 is as follows: Tick Pty Ltd|
Balance Sheet|
As at 1 July 2011|
| | | |
Assets|
| Cash| | 18500|
| Accounts Receivable| | 21000|
| Supplies| | 22500|
| Equipment| | 53000|
| Total Assets| | 115000|
| | | |
Liabilities |
| Accounts Payable| | 79500|
Owner’s Equity|
| Ming, Capital| | 35500|
| Total Liabilities and Owner’s Equity| | 115000| | | | |

During the month of July to September, Tick conducted the following transactions: 4 July| Purchased a new equipment for $3000 cash.|
10 July| Invoiced customer for service completed $7500|
15 July| Received $3500 payment from customers who have previously been billed.| 20 July| Paid supplier $7500 for office supplies purchased last month.| 28 July| Received a $700 bill from the local newspapers for advertising, due in 2 weeks.| 6 August| Paid employee salaries for $3000 cash. |

11 August| Paid bills from the local newspaper for invoice received on 28 July.| 15 August| Purchased office supplies for $4500 to be paid 1 month later.| 23 August| Provided services to customers for $6500 cash.| 31 August| Paid employee salaries for $3000 and shop rent for $1750 cash.| 8 September| Paid for the purchase of office supplies on 15 August.| 15 September| Ming (the owner) contributed $3000 cash to the business.| 24 September| Provided services to customers for $5500 credit.| 30 September| Paid employee salaries for $3000.|

Required
a. Prepare a worksheet for Tick Pty Ltd for the business transactions in July to September 2011. b. Using the data given above, prepare an income statement for the quarter ending 30 September 2011 and a balance sheet as at 30 September 2011 for Tick Pty Ltd (Note: ignore income tax expense)....
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