+61480015851
ACC5202: Accounting- Csh vs Accrual- Method of Accounting- Accounting Assignment Help
Download Solution
Order New Solution
Internal Code: 1HDAB
Question 2
A. What impact does the matching principle have on the method of accounting i.e. cash vs accrual. Describe each method and discuss.
B. J. Jackson has calculated profit on the 30th June 2018 to be $3281001 when the following was discovered (the firm uses accrual accounting).
(i) The weekly wages bill for the firm is $21000. The last payment for wages was on Friday 26th June. The next payment will be on Friday 3rd July.
(ii) Income of $1520 for commission fees had been earned but not yet recorded.
(iii) A full year’s rent of $36000 was paid for the premises from which the firm operates on 1st February 2018.
(iv) The firm has $25000 invested. It earns interest of 6% per annum payable quarterly. Interest was last received on 1st April for the quarter (January, February, March).
(v) The firm had received funds of $12000 on 1st March 2018 for work to be completed by end of October 2018. 30% of the work has been completed by June 30th 2018.
(vi) An amount of $6000 paid for new Office Furniture had been incorrectly coded and entered as Office Expenses.
(vii) Office Supplies had a balance at the beginning of the year (after adjustments) of $800. Throughout the year $5200 in office supplies was purchased. At June 30th 2018 the value of office supplies remaining was $1500.
(viii) The firm had recorded in the GST Control account GST Collected of $7960 and GST Paid of $8540. Make the entry that would be necessary to account to the ATO.
(i) Make the journal entries to adjust the accounts affected where necessary.
(ii) What would be the new profit figure after taking into account the above entries?
Accounting Assignment Help:
Task: Question 1 A. A student was overheard to say “The worksheet is a very important report. If the worksheet ‘balances’ the books are correct!” Comment on the statement (i) that the worksheet is a very important report and why, and (ii) whether it is correct to assume that the books are correct. Give 2 examples to either support or disprove this statement. B. As a graduate accountant you are confronted with the following task in your first job. Your boss informs you that the Trial Balance as at 31st December 2018 does not balance and asks why? You discover a number of errors and in order to correct the Trial Balance complete the table below:
Question 2
A. What impact does the matching principle have on the method of accounting i.e. cash vs accrual. Describe each method and discuss.
B. J. Jackson has calculated profit on the 30th June 2018 to be $3281001 when the following was discovered (the firm uses accrual accounting).
(i) The weekly wages bill for the firm is $21000. The last payment for wages was on Friday 26th June. The next payment will be on Friday 3rd July.
(ii) Income of $1520 for commission fees had been earned but not yet recorded.
(iii) A full year’s rent of $36000 was paid for the premises from which the firm operates on 1st February 2018.
(iv) The firm has $25000 invested. It earns interest of 6% per annum payable quarterly. Interest was last received on 1st April for the quarter (January, February, March).
(v) The firm had received funds of $12000 on 1st March 2018 for work to be completed by end of October 2018. 30% of the work has been completed by June 30th 2018.
(vi) An amount of $6000 paid for new Office Furniture had been incorrectly coded and entered as Office Expenses.
(vii) Office Supplies had a balance at the beginning of the year (after adjustments) of $800. Throughout the year $5200 in office supplies was purchased. At June 30th 2018 the value of office supplies remaining was $1500.
(viii) The firm had recorded in the GST Control account GST Collected of $7960 and GST Paid of $8540. Make the entry that would be necessary to account to the ATO.
(i) Make the journal entries to adjust the accounts affected where necessary.
(ii) What would be the new profit figure after taking into account the above entries?