Answer To: Round Values to the closest dollar. Example $12.49 would round uo to $12 and $12.50 to $13Copy and...
Nitish Lath answered on Jan 13 2021
Description
MAA103 Assessment 2: Balance Day Adjustments & Financial Statements
Student ID 221003004
Student Username lyncr @deakin.edu.au
Business Name: Ms Georgina Orwell Trading As 'Café Nineteen Eighty-Four'
'Café Nineteen Eighty-Four' is owned and operated by Ms Georgina Orwell. Georgina opened the business some time ago and has had some training in basic bookkeeping. Georgina has been keeping a pretty good record of her business so far and has even managed to do some of the needed balance day adjustments already. There are a few balance day adjustment items remaining that she was unsure on and so she has enlisted your help and has provided you with her unadjusted trial balance for the month of August 2020. Your task is to record the adjusting entries in the 'Journal', post these entries to the 'Ledger', manually prepare the 'Adjusted Trial Balance' and finally help fill out the 'Income Statement' and 'Balance Sheet' based on the 'Adjusted Trial Balance' for the month of August 2020. You can assume all other balance day adjustments not listed have already been accounted for and the bank loan is due in August 2025.
Relevant information:
1. Adjusting Items:
Date Description
8/31/20 Received $14520 (including GST) from a client at the start of August 2020 to provide catering services. The amount was initially recorded as unearned revenue and GST Collected. The business provided these catering service by the end of August 2020.
8/31/20 On August 1, 2020 the business paid $11858 (including GST) for 7 months of business insurance. This was recorded at the time as Prepaid Insurance and GST Paid.
8/31/20 The motor vehicle is depreciated using the straight line method. It has a useful life of 6 years and a zero residual value.
8/31/20 The business employs 6 kitchen and wait staff. Each staff member's GROSS wage is $1450 per fortnight [PAYG withheld of $204]. At the end of the month, the business owed 1 week of wages to its kitchen and wait staff and that is yet to be recorded.
8/31/20 On August 1, 2020 the business deposited $19200 into a fixed deposit at ABC Bank. The interest offered was at 4% per annum and is paid once per annum. The interest earned on the $19200 fixed deposit has not been recorded.
8/31/20 On August 1, 2020 the business paid $5500 (including GST) for 5 months of office rent. This was recorded at the time as Prepaid Rent and GST Paid.
8/31/20 The office furniture is depreciated using the straight line method. It depreciates at 20% per annum and is assumed to have a zero residual value.
8/31/20 The business hires 7 general office assistants. Each assistant is paid a NET wage of $660 per week [PAYG withheld of $114]. At the end of the month, the business owed its office assistants 2 weeks of wages and that is yet to be recorded.
8/31/20 On August 13, 2020 the business purchased 18 notebooks worth $198 (including GST) and recorded this amount as Office Supplies and GST Paid. Georgina counted the notebooks at the end of August 2020 and found that 10 of these notebooks have been consumed but their consumption has not been recorded.
Unadjusted Trial Balance
"For the Month Ending 31/8/2020"
Acc. No. Account Dr Cr
101 Cash 253,968 0
102 Accounts receivable 38,996 0
103 Inventory 71,954 0
104 Office Supplies 10,714 0
111 GST Paid 7,655 0
141 Prepaid Insurance 10,780 0
142 Prepaid Rent 5,000 0
143 Interest Receivable 3,130 0
155 Office Furniture 39,600
156 Accum. Depreciation - Office Furniture 7,920
158 Motor Vehicle 69,120 0
159 Accum. Depreciation - Motor Vehicle 0 11,520
201 Accounts Payable 0 17,990
222 GST Collected 0 21,195
240 Interest Due 0 3,346
241 Unearned Revenue 0 23,696
242 Wages Payable 0 2,550
243 Utilities Payable 0 3,400
244 Consulting Fees Payable 0 4,442
251 Bank Loan 0 41,200
261 PAYG Withheld 0 6,242
301 Capital 0 259,928
302 Drawings 8,550 0
401 Sales Revenue 0 183,512
402 Service Revenue 0 28,440
403 Interest Revenue 0 3,130
501 Cost of Good Sold 36,702 0
601 Computer Expense 1,688 0
602 Office Supplies Expense 0 0
603 Interest Expense 3,346 0
604 Consulting Expense 8,882 0
605 Insurance Expense 0 0
606 Rent Expense 0 0
607 Sales Commission Expense 9,176 0
608 Utilities Expense 8,500 0
609 Wage Expense 25,500 0
610 Advertising Expense 5,250 0
651 Depreciation Expense - Motor Vehicle 0 0
655 Depreciation Expense - Office Furniture 0 0
TOTAL 618,511 618,511
Journal
GENERAL JOURNAL
Instructions:
-Fill out the journal entries below based on the 'Description' tab.
-You must write the Date, Account Name, and fill out the corresponding values in the Debit (Dr) or Credit (Cr) column.
-There is no need to indent your accounts and also narrations are NOT required
-Please ensure that your date format is in dd/mm/yyyy format and that your dates fall between 1 Aug 2020 - 31 Aug 2020.
-Note: The account name used in the journal must come from the drop down menu.
-Failure to follow the instructions precisely may result in a loss of marks.
The General Journal Chart of accounts
Date Accounts Dr Cr Account
No Account Name
8/31/20 Unearned Revenue 13,200 101 Cash
Service Revenue 13,200 102 Accounts Receivable
103 Inventory
8/31/20 Insurance Expense 1,540 104 Office Supplies
Prepaid Insurance 1,540 111 GST Paid
141 Prepaid Insurance
8/31/20 Depreciation Expense - Motor Vehicle 11,520 142 Prepaid Rent
Accum. Depreciation - Motor Vehicle 11,520 143 Interest Receivable
151 Computer equipment
8/31/20 Wage Expense 4,350 152 Accum. Depreciation - Computer Equipment
PAYG Withheld 612 155 Office Furniture
Wages Payable 3,738 156 Accum. Depreciation - Office Furniture
158 Motor Vehicle
8/31/20 Interest Receivable 64 159 Accum. Depreciation - Motor Vehicle
Interest Revenue 64 201 Accounts Payable
222 GST Collected
8/31/20 Rent Expense 1,000 240 Interest Due
Prepaid Rent 1,000 241 Unearned Revenue
242 Wages Payable
8/31/20 Depreciation Expense - Office Furniture 7,920 243 Utilities Payable
Accum. Depreciation - Office Furniture 7,920 244 Consulting Fees Payable
251 Bank Loan
8/31/20 Wage Expense 10,836 261 PAYG Withheld
PAYG Withheld 1,596 301 Capital
Wages Payable 9,240 302 Drawings
401 Sales Revenue
8/31/20 Office Supplies Expense 100 402 Service Revenue
Office Supplies 100 403 Interest Revenue
501 Cost of Good Sold
601 Computer Expense
602 Office Supplies Expense
603 Interest Expense
604 Consulting Expense
605 Insurance Expense
606 Rent Expense
607 Sales Commission...