ACCY112 - Accounting Concepts - Accounting Assignment Help

Assignment Task

Engineering Consultants Ltd

Background

Engineering Consultants Ltd (ECL) is owned and managed by Jane Smith.  Jane owns 50% of the company; the remaining 50% is owned by private investors.  ECL offers a range of services including planning and project management of roads, bridges and buildings as well as surveying of land (e.g. environmental and geotechnical reports).  It has 10 senior engineers and 10 technical engineers, supported by 1 accountant and 5 administrators.  Formed in 1992, Jane Smith has grown ECL into a profitable medium-sized company with plenty of future growth opportunities.  However, profits were minimum in the early years and there were loses in a couple of years. 

Trial Balance

Engineering Consultants Ltd
Trial Balance 
As at 28 February 2014
Debt Balances    $    Credit Balances    $
101 Bank    88,035    152 Accumulated Depreciation – Vehicles     140,000
106 Accounts receivable    188,110    164 Accumulated Depreciation – Office equipment and furniture    246,000
144 Investment in Road Works Ltd    450,000    201 Accounts payable    15,060
151 Vehicles    300,000    219 PAYE (pay-as-you-earn) tax payable    41,444
163 Office equipment and furniture    482,000    230 Provisional income tax payable    14,000
605 Depreciation expense – Vehicles     44,000    259 Loan    482,951
612 Depreciation expense – Office equipment and furniture     138,000    308 Owners’ equity    200,000
622 Salaries and wages expense    2,254,129    318 Retained earnings    51,858
633 Interest paid    60,907    403 Service revenue    2,990,500
637 Insurance expense    28,000    407 Dividends received    60,000
640 Rent expense    67,200    903 GST (Goods and Services Tax) clearing    39,413
655 Advertising expense    25,000        
656 Bad debt expense    9,500        
677 Miscellaneous expense    53,070        
683 Rates expense    5,625        
688 Telecommunications expense    30,800        
690 Electricity expense    14,850        
695 Provisional income tax    42,000        
Total    4,281,226    Total    4,281,226

Notes:
i.    106 Accounts receivable: ECL has four major clients including Local City Council ($39,500), Local District Council ($45,350), Lots of Construction Ltd ($60,060), and Road Works Ltd ($23,100) as well as a number of smaller clients ($20,100).  

ii.    144 Investment in Road Works Ltd: ECL owns 100,000 shares in (or 20% of) the company.  They are also a major client; 407 Dividends received: Road Works Ltd paid a dividend of 30 cents per share in May 2013.  

iii.    151 Vehicles: ECL owns a fleet of 6 vehicles that employees use to visit clients.  The fleet was purchased on 1 April 2011 for $300,000. ECL plans to replace the fleet on 1 April 2016 with an expected residual value of $60,000; 152 Accumulated Depreciation – Vehicles: Represents 2 years and 11 months of depreciation; 605 Depreciation Expense – Vehicles; Calculated on a straight line basis, depreciation is $4,000 per month or $48,000 per annum (= $300,000 - $60,000 / 5 years).

iv.    163 Office equipment and furniture: There is a lot of office equipment and furniture in ECL’s office including computers.  It was purchased on 1 October 2010 for $482,000. ECL plans to replace it on 1 October 2016 with an expected residual value of $50,000; 164 Accumulated depreciation – Office equipment and furniture: Represents 3 year and 5 months of depreciation; 613 Depreciation expense – Office equipment and furniture: Calculated on a straight line basis, depreciation is $6,000 per month or $144,000 per annum (= $482,000 - $50,000 / 6 years).

Requirements

1.    Record March’s transactions in the general journal and general ledger, and then prepare a trial balance.

2.    Record the balance day adjustments in the general journal and general ledger, and then prepare an adjusted trial balance.  

3.    Record the closing entries in the general journal and general ledger, and then prepare a post-closing trial balance.

4.    Prepare the income statement, statement of changes in equity and statement of financial position.

5.    Record the reversing entries in the general journal and general ledger.

This ACCY112 - Accounting Assignment has been solved by our Accounting experts at My Uni Paper. Our Assignment Writing Experts are efficient to provide a fresh solution to this question. We are serving more than 10000+ Students in Australia, UK & US by helping them to score HD in their academics. Our Experts are well trained to follow all marking rubrics & referencing style.
Be it a used or new solution, the quality of the work submitted by our assignment experts remains unhampered. You may continue to expect the same or even better quality with the used and new assignment solution files respectively. There’s one thing to be noticed that you could choose one between the two and acquire an HD either way. You could choose a new assignment solution file to get yourself an exclusive, plagiarism (with free Turnitin file), expert quality assignment or order an old solution file that was considered worthy of the highest distinction.