Keeping Up With The Jones's Education Ltd - Accounting Case Study

Internal Code: MAS5927

Accounting Case Study

Gerald Jones has a passion for education and decided to open a tutoring business, “Keeping Up With The Joneses Education Ltd” on the 1 st July 2016. His primary focus is to sell tuition to students for the core subjects of English, Mathematics, and Science; but also has a variety of educational resources (textbooks, a collection of past exams, etc) that he also sells to generate an income. At the end of his first year of operation, he was satisfied with respectable profits, the retained earnings made and with positive indications that his can satisfy all liabilities (both current and non-current). Gerald wants to continue this success into the new year, as he heard that 70% of businesses fail within the first 5 years of operation. As such, he wants to keep a close eye on how his business performs each month and report on how well the business is doing with its profitability, retained earnings and overall financial position. If there are any indications that the business is underperforming, he wants to make any necessary adjustments to avoid his business becoming another business that couldn’t make it. Task: As a friend of Gerald with a reasonable amount of accounting experience, you have been asked to perform the Accounting Cycle process for the month of July 2017 based on the June 2017 Post-closing Trial Balance and the transactions that took place in July. You have also been asked to make a report on the performance of the business based on its profitability, retained earnings and financial position. You have been provided with the statements made in June 2017 to assist you with this process.