ACC506: ledger and trial balance of A Blake - Accounting Assignment

Internal Code: MAS 3770

Accounting Assignment Help

Questions: Access the general journals, ledger and trial balance of A Blake, C Dairy & E Ferguson, which you prepared in task.you are required to: a) Correct any errors that were identified in your task 2a spreadsheet (if applicable). b) Optional: some accountants find it beneficial to prepare an accounting worksheet. A worksheet does not form part of the accounting system, but is an additional tool to assist with the accounting process. It is not a mandatory requirement for this assessment task, but you may like to prepare a worksheet to assist you with steps c, d & f below (you may copy the worksheet format from the topic 4 resources on Blackboard). c) Prepare adjustment journal entries to account for the 6 dot points above (note: no adjustments are required for rent or advertising expenses; these costs relate entirely to the 2017 financial year). d) Post the adjustment journal entries (which will include updating the ledger accounts you have previously prepared, and creating new accounts as required); you will also need to update the trial balance e) Prepare closing journal entries (do not post these) f) Prepare financial statements: (1) Income Statement, (2) Statement of Changes in Equity, and (3) Balance Sheet). g) Calculate the following financial ratios: (1) Current ratio, (2) Gross Profit percentage, and (3) Days in inventory ratio (note: use ending inventory balance as average inventory for this calculation). h) Prepare a brief report in response to the 4 concerns raised by the partners. In your report, you must directly address the concerns raised by the partners. In doing so, please briefly explain the following concepts: a. The importance of internal control b. Earnings management c. Different options for accounting for inventory d. The accounting standard and general guidelines for recording non-current assets (note: a scaffolding activity will be conducted in week 8 or week 9 computer workshops which will assist with this). e. Interpretation of the current ratio f. Interpretation of the gross profit percentage g. Interpretation of the inventory ratio