Kate decided to open Kate’s Kupcakes on 1 July 202X. Kate will sell cupcakes in her store and also take custom orders. She contributed ingredients valued at $2,000, equipment valued at $10,000 and shopfitting’s valued at $6,000. She also deposited $12,000 into a business bank account. Kate plans to use her own vehicle to make deliveries and pick up supplies. Kate purchased the vehicle for $30,000 on 1 July 202X. The expected life of the car is 5 years with a residual value of $5,000. On 1 July Kate took out a $20,000 business loan with a fixed rate of interest of 12% p.a. Monthly repayments on the loan are $450 and are due on the 18th of every month. Transactions during July were: 4 Took a five-year lease on a shop and paid the first 6 months of rent $9,000. 4 Mrs. Jones requested a quote for a custom order of 200 cupcakes. 4 Kate purchased a $300 printer on credit. 8 Kate contacted Mrs. Jones to inform her the custom order would cost $600. 9 Purchased office supplies for $400, paid $75 cash in part payment for these supplies. 11 Cash received for her first week is deposited, $2,550. 12 EFTPOS sales of $125 13 Paid petrol $40, postage $10, and electricity bill $424. 13 Paid the balance of the printer owing from 4th July. 14 Office supplies used $82. 15 Mrs. Jones paid a $50 deposit for her cupcakes to be collected on July 31st. 16 Engaged a part time assistant at an agreed wage of $250 per week. 17 Cash revenue received $825 18 Paid the balance of the office supplies purchased on July 9th. 21 Ingredients purchased for $85 on credit. 23 Paid weekly wages to the assistant. 24 The owner withdrew $400 for her own use. 25 Revenue earned of $932, receiving $132 in cash, $600 EFTPOs and the remainder to be paid later. 28 Phone expenses paid of $40. 30 Cash of $800 deposited. 31 Paid weekly wages to the assistant. Complete a worksheet on Excel for the month of July using the above data and prepare an income statement and balance sheet at 31 July 202X
The Effect Of Prepaid Taxes On Assets And Liabilities
Many businesses estimate tax liability and make payments throughout the year (often quarterly). When a company overestimates its tax liability, this results in the business paying a prepaid tax. Prepaid taxes will be reversed within one year but can result in prepaid assets and liabilities.
Final Accounts
Financial accounting is one of the branches of accounting in which the transactions arising in the business over a particular period are recorded.
Ledger Posting
A ledger is an account that provides information on all the transactions that have taken place during a particular period. It is also known as General Ledger. For example, your bank account statement is a general ledger that gives information about the amount paid/debited or received/ credited from your bank account over some time.
Trial Balance and Final Accounts
In accounting we start with recording transaction with journal entries then we make separate ledger account for each type of transaction. It is very necessary to check and verify that the transaction transferred to ledgers from the journal are accurately recorded or not. Trial balance helps in this. Trial balance helps to check the accuracy of posting the ledger accounts. It helps the accountant to assist in preparing final accounts. It also helps the accountant to check whether all the debits and credits of items are recorded and posted accurately. Like in a balance sheet debit and credit side should be equal, similarly in trial balance debit balance and credit balance should tally.
Adjustment Entries
At the end of every accounting period Adjustment Entries are made in order to adjust the accounts precisely replicate the expenses and revenue of the current period. It is also known as end of period adjustment. It can also be referred as financial reporting that corrects the errors made previously in the accounting period. The basic characteristics of every adjustment entry is that it affects at least one real account and one nominal account.
Kate decided to open Kate’s Kupcakes on 1 July 202X. Kate will sell cupcakes in her store
and also take custom orders. She contributed ingredients valued at $2,000, equipment
valued at $10,000 and shopfitting’s valued at $6,000. She also deposited $12,000 into a
business bank account. Kate plans to use her own vehicle to make deliveries and pick up
supplies. Kate purchased the vehicle for $30,000 on 1 July 202X. The expected life of the car
is 5 years with a residual value of $5,000. On 1 July Kate took out a $20,000 business loan
with a fixed rate of interest of 12% p.a. Monthly repayments on the loan are $450 and are
due on the 18th of every month.
Transactions during July were:
4 Took a five-year lease on a shop and paid the first 6 months of rent $9,000.
4 Mrs. Jones requested a quote for a custom order of 200 cupcakes.
4 Kate purchased a $300 printer on credit.
8 Kate contacted Mrs. Jones to inform her the custom order would cost $600.
9 Purchased office supplies for $400, paid $75 cash in part payment for these supplies.
11 Cash received for her first week is deposited, $2,550.
12 EFTPOS sales of $125
13 Paid petrol $40, postage $10, and electricity bill $424.
13 Paid the balance of the printer owing from 4th July.
14 Office supplies used $82.
15 Mrs. Jones paid a $50 deposit for her cupcakes to be collected on July 31st.
16 Engaged a part time assistant at an agreed wage of $250 per week.
17 Cash revenue received $825
18 Paid the balance of the office supplies purchased on July 9th.
21 Ingredients purchased for $85 on credit.
23 Paid weekly wages to the assistant.
24 The owner withdrew $400 for her own use.
25 Revenue earned of $932, receiving $132 in cash, $600 EFTPOs and the remainder to be paid later.
28 Phone expenses paid of $40.
30 Cash of $800 deposited.
31 Paid weekly wages to the assistant.
Complete a worksheet on Excel for the month of July using the above data and prepare an
income statement and
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