The Unadjusted Trial Balance For ‘Archie World’ - Accounting and Finance Assignment Help

Assignment Task

QUESTION 1: Balance Day Adjustments (21 marks)

Below is the unadjusted Trial Balance for ‘Archie World’, a business owned and operated by Archie Lane, as at 30 June 2020.

1. Archie last received an electricity bill on 31 May 2020, and Archie estimates that his power usage from then until 30 June 2020 was $3,250.

2. Office Salaries which are payable but not recorded as at 30 June are $2,950.

3. In order to allow for cash flow fluctuations, the bank has approved a $55,000 overdraft facility for Archie’s business bank account.

4. Both the Furniture & Fittings and the Delivery Equipment are expected to be used evenly over their useful lives. The expected total useful lives and residual values of both assets areas follows:

5. The balance in the Prepaid Insurance account represents a 12-month insurance policy that commenced on 1 April 2020.

6. A count of the stationery room revealed that office supplies on hand at 30 June 2020 were $980.

7. $23,750 of the recorded Sales Revenue is for specially imported trees which will not be delivered until 5 July 2020.

8. As of 30 June 2020, Archie has estimated that 2% of her Accounts Receivable will not be collected.
REQUIRED:
As it is now the end of the financial year, you are required to prepare any necessary Balance Day Adjustment Journals for Archie World.  
Include a brief narration (explanation) for each journal entry. 

QUESTION 2: Financial Statement (23 marks)

The following Trial Balance for Invisible Man has been prepared at year end by the owner A. Casper, but he realises it is notin the correct order.

A. Casperhas provided the following addition information to assist in your statement preparation:
• 25% of the electricity expense specifically relates to the administration office. The remainder of this expense relates to running the store.
• $7,800 of the rent expense specifically relates to the administration office. The remainder of this expense relates to running the store.
REQUIRED:
Using the Trial Balance provided above, prepare the following for the period in question:
a) Fully classified Income Statement               
b) Statement of Changes in Equity             

QUESTION 3: Accounting Concepts (10 marks)

You are employed as a graduate accountant in a mid-tier accounting firm.  One of the partners has asked you to review each of the following separate cases where a client has violatedat least one of the assumptions, concepts or definitions you studied in ‘Accounting for Business’ at university. 
The partner has asked for a written responsein your own words (using references where appropriate), to explainboth of the following(maximum 200 words for each part):

Part A. 
Edward Keeranis a sole trader, operating an office supply shop. At the end of the current year he purchased $8,500 of photocopy inks from a stationery business that was being liquidated. Though the inks are yet to be used, Edward has written off the entire amount as an expense for the year.The office supply shop’s net asset as at 30 June 2020 are $120,000.

Required: 
Explain which concept or assumption has been violated, andwhat the correct treatment should be.
Part B. 
Zedd’s business has motor vehicles with a cost of $120,000 that are used for the business. Zedd’s business has been going through financial difficulties in recent years and he thinks Depreciation Expense should not be recorded as it will reduce the profit for the year even more.     (5 marks)
Required: 
Explain which concept or assumption has been violated, andwhat the correct treatment should be. 
QUESTION 4: Cash Flow Statement (17 marks)

You are provided with the following financial information for BB Barbie, a clothing and accessory retailer.

This Accounting and Finance Assignment has been solved by our Accounting and Finance 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.