Finance and Management

ACC100 Accounting for Business

25 June 2023 05:52 AM | UPDATED 10 months ago

ACC100 Accounting for Business :

ACC100 Accounting for Business
ACC100 Accounting for Business

Southern Cross Institute (SCI) ACC100 Accounting for Business

ACC100 Bookkeeping for Business Assessment 1 Preparation of Financial Statements Case Study Question

You have decided that a company is the best business structure for you and on 15 May Sunshine Electronics Pty Ltd was incorporated as a private company with you as the sole director/shareholder. The company now has a tax file number and an Australian Business Number (Australian students) and you have chosen not to register the company for GST at present.

You have signed a lease on a shop for 2 years with an option to renew for a further 3 years. You have opened a bank account in the company’s name with the ANZ Bank, and at the same time applied for a loan of $50,000 from the bank to enable you to set up the shop and provide you with working capital. You contracted a shopfitter to fit out the shop, which opened for business on 24 May.

These are the transactions for the month.

May   15    You deposited $10,000 to open the business bank account. This was your investment in the company in exchange for 10,000 ordinary shares.

  1. The bank deposited the $49,500 loan funds into the bank after deducting $500 in costs to establish the loan.
  2. Paid rent of $1485 to Atlas Realty (cheque no.1).
  3. Paid Adams Shopfitters $20,000 for display cabinets, counters and shelving (cheque no.2).
  4. Paid the local newspaper (Community Times) $1,000 for a series of weekly advertisements to commence this week (cheque no.3).
  5. Paid $1,500 to Bayview Insurance Brokers for a 1-year business insurance policy commencing 21 May (cheque no.4).
  6. Purchased from Tony’s Second-hand Mart, a cash register for $350, a lounge suite for $400 and a table & chairs for $380 for the shop (cheque no.5).
  7. You contributed equipment valued at $5,000 for repairing computers to the business. At present you do not want to take cash out of the business, so this will take the form of an interest free loan to be repaid two years from now.

31   Banked $2,520 cash and cheques from servicing computers since the shop opened.

Required

  1. Use the general journal to record the transactions for May, with narrations.
  2. Setup the general ledger accounts and post the journal entries to them.
  3. Prepare a Trial Balance on 31 May.
  4. Prepare a Statement of Profit or Loss (Income Statement)
  5. Prepare a Statement of Changes in Equity
  6. Prepare a Statement of Financial Position (Balance Sheet)

Note: Use the MS Excel Spreadsheet Template provided in the Resources folder for ACC100 Bookkeeping for Business Assessment Task 1 to complete requirements 1 to 6.

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ACC100 Accounting for Business

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