ACCT1110 Financial Reporting and Analysis 2022-1
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ACCT1110 Financial Reporting and Analysis
2022-1
Individual Assignment
On 1 April 2022, Naomi Duncan opened a car hire business called Cars R Us Pty Ltd. Naomi has discussed opening the new business with an accountant friend who has recommended utilizing the following account titles and numbers for recording the business transactions.
Account no. |
Account Description |
101 |
Cash at bank |
102 |
Accounts receivable |
110 |
Supplies |
120 |
Equipment |
130 |
Motor vehicles |
201 |
Accounts payable |
210 |
Bank loan payable |
301 |
Share capital |
401 |
Revenue |
510 |
Rent expense |
520 |
Insurance expense |
530 |
Fuel expense |
540 |
Bank charges |
|
|
Listed below are the transactions which have been entered into by the company during the month ended 30 April 2022 (ignore GST).
April |
1 |
|
Issued shares to investors for $500,000 cash. |
|
2 |
|
Monthly rent expense for the premises of $1,200 was directly debited from the bank account. |
|
4 |
|
Purchased eight motor vehicles costing $50,000 each and equipment costing $26,000. $250,000 cash was withdrawn from the business bank account to pay for the cars and a bank loan to be paid back in 4 years’ time was taken out for the balance. |
|
5 |
|
Purchased supplies costing $12,500 on credit. |
|
15 |
|
Recorded revenue for the first half of the month of $24,600 deposited to the business bank account in cash and $48,500 on credit. |
|
18 |
|
Paid for the supplies purchased on 5 April by transfer from the business bank account. |
|
19 |
|
Paid insurance expense for April of $5,000 by transfer from the business bank account. |
|
24 |
|
Received cash of $18,400 from customers who had purchased |
|
27 |
|
Purchased supplies costing $4,200 on credit. |
|
30 |
|
Recorded revenue for the second half of the month of $32,500 deposited to the business bank account in cash and $25,800 on credit. |
|
30 |
|
Recorded fuel expense of $8,200 paid by transfer to Caltex from the business bank account. |
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* revised 16 March 2022
Bank statement for Cars R Us Pty Ltd for the month ended 30 April 2022 |
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Issued by Banking Is Us Ltd |
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Statement Number 113 |
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Account Number 145789 22887 |
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Closing Balance 298,570.00 |
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Date |
Description |
Payments |
Receipts |
Balance |
|
|
Opening balance |
|
|
0.00 |
|
1 Apr |
Capital contributed |
|
500,000.00 |
500,000.00 |
|
2 Apr |
Direct debit – Commercial Landlord |
1,200.00 |
|
498,800.00 |
|
4 Apr |
Motor Vehicle and Equipment |
250,000.00 |
|
248,800.00 |
|
15 Apr |
Cash deposit |
|
24,600.00 |
273,400.00 |
|
18 Apr |
Transfer to Officeworks |
12,500.00 |
|
260,900.00 |
|
19 Apr |
Transfer to Insurance Specialists |
5,000.00 |
|
255,900.00 |
|
24 Apr |
Cash deposit |
|
18,400.00 |
274,300.00 |
|
30 Apr |
Cash deposit |
|
32,500.00 |
306,800.00 |
|
30 Apr |
Transfer to Caltex |
8,200.00 |
|
298,600.00 |
|
30 Apr |
Statement and bank charges |
30.00 |
|
298,570.00 |
|
Required
1) Prepare the journals for the April transactions. Narrations are not required and no depreciation adjustment or other adjusting entries are necessary. No new general ledger accounts are required to be established or added to the chart of accounts. (14 marks)
2) Post all the journals from (1) above to the general ledger and prepare a trial balance as at 30 April 2022. (18 marks)
3) Prepare the following for Cars R Us Pty Ltd:
a) Statement of Profit or Loss for the month ended 30 April 2022.
b) Calculation of retained earnings for the month of April 2022.
c) Classified Statement of Financial Position as at 30 April 2022. (13 marks)
(Total = 45 marks which equals 15% of the total course mark)
A template for you to use to answer this assignment is given in the following pages. You are welcome to adapt it (e.g. add more pages).
Question 1 Solution
Prepare the journals for the April transactions. Narrations are not required and no depreciation adjustment or other adjusting entries are necessary. No new general ledger accounts are required to be established or added to the chart of accounts. (13 marks)
2022-03-23