TASK 1: CREATE A BUSINESS (STARTS IN JANUARY 2020) Must be a trading business Describe your business: Product – Choose only 1 product (What and why) Name of business and location (Where and why) List of managers List of assets (at least 2; state the cost and depreciation policy) TASK 2: TRANSACTIONS FOR DECEMBER 2020 Create business transactions and include the following: • 2 cash purchase transactions (1 with trade discounts) • 2 credit purchase transactions 2 cash sale transactions (1 with trade discounts)

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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TASK 1: CREATE A BUSINESS (STARTS IN JANUARY 2020)
Must be a trading business
Describe your business:
Product – Choose only 1 product (What and why)
Name of business and location (Where and why)
List of managers
List of assets (at least 2; state the cost and depreciation policy)
TASK 2: TRANSACTIONS FOR DECEMBER 2020
Create business transactions and include the following:
2 cash purchase transactions (1 with trade discounts)
• 2 credit purchase transactions
2 cash sale transactions (1 with trade discounts)
2 credit sale transactions
2 payments from credit customers (1 with cash discounts)
2 payments to credit supplier (1 with cash discounts)
1 other income (no accruals or prepayments)
4 expenses (no accruals or prepayments)
Prepare the journal entries and post it to the ledgers
TASK 3: PREPARE FINANCIAL STATEMENTS
• Create your own balances
Calculate depreciation for the year
• Estimate allowance for impairment of trade receivables (Why?)
Prepare the statement of profit or loss
Prepare the statement of financial position
Transcribed Image Text:TASK 1: CREATE A BUSINESS (STARTS IN JANUARY 2020) Must be a trading business Describe your business: Product – Choose only 1 product (What and why) Name of business and location (Where and why) List of managers List of assets (at least 2; state the cost and depreciation policy) TASK 2: TRANSACTIONS FOR DECEMBER 2020 Create business transactions and include the following: 2 cash purchase transactions (1 with trade discounts) • 2 credit purchase transactions 2 cash sale transactions (1 with trade discounts) 2 credit sale transactions 2 payments from credit customers (1 with cash discounts) 2 payments to credit supplier (1 with cash discounts) 1 other income (no accruals or prepayments) 4 expenses (no accruals or prepayments) Prepare the journal entries and post it to the ledgers TASK 3: PREPARE FINANCIAL STATEMENTS • Create your own balances Calculate depreciation for the year • Estimate allowance for impairment of trade receivables (Why?) Prepare the statement of profit or loss Prepare the statement of financial position
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