Recent Question/Assignment

Please can you quote me on my accounting for home business class assignment.Many thanksJon
QUESTION 1 (10 Marks)
Ken Kennett Building Services is a local business operating in the housing industry. Ken Kennett has no formal accounting system and does not use financial statements for decision making. However, he is negotiating a contract with a supplier of building materials who wants to see his financial statements to ensure that Ken can meet his payments each month. Ken has asked you to prepare financial statements. Based on his last tax return and the content of his shoebox (where he keeps his invoices and receipts) for this year, you have recorded the following items:
Cash in the shoebox (with the receipts and invoices) $500
Cash in the bank account 3,800
Building services provided 550,000
Amounts owed by customers 80,000
Wages paid to employees 150,000
Wages owed to the employees 3,500
Equipment 68,000
Building supplies used 310,000
Building supplies on hand 18,000
Amounts owed to suppliers 30,000
Motor vehicle 32,000
Motor vehicle expenses 5,600
Electricity and telephone expenses 4,000
Cash used by Ken for personal expenditure 5,700
REQUIRED:
A. Using the information above, prepare a statement of financial performance (income statement) and a statement of financial position (balance sheet) for Ken Kennett Building Services. ( 6 Marks)
B. How would the financial statements you provide help the supplier of building materials decide whether or not to trade with Ken? What parts of the financial statements would be positive indicators that Ken Kennett Building Services would be able to pay for supplies on time and what items may cause some concern for the suppliers? (4 Marks)

QUESTION 2 (10 Marks)
Clive Calmer offers accounting services to the local small business owners! He has set up a sole proprietorship business named CC Accounting. Clive has collected the following information relating to his business activities at the end of financial year:
Office supplies $1,500
Office supplies expense 840
Telephone expense 255
Motor vehicle expense 330
Accounts receivable 1,500
Bank loan 7,500
Accounts payable 1,080
Cash at bank 8,445
Computer equipment 8,250
Advertising expense 510
Accounting service income 9,750
The following information was also disclosed from examining Clive’s bank statement:
Accounting service income receipts $8,250
Initial contribution by Clive 3,300
Bank loan received 9,000
Payments to suppliers 2,355
Repayment of loan 1,500
Computer equipment purchase 8,250
REQUIRED:
A. Without preparing formal financial statements, calculate the following: (6 Marks)
1. Profit/loss for the year
2. Total assets at the end of the year
3. Total liabilities at the end of the year
4. Clive Calmer’s capital balance at the end of the year
5. Net cash inflow/outflow for the year
B. If Clive had withdrawn $3,000 in cash during the year, what effect would this have (increase, decrease, no effect) on the figures you calculated in requirement A? (4 Marks)

Looking for answers ?


Recent Questions

Assignment TopicYour assignment should be 2,500 words in length (10% allowance), appropriately referenced using the Harvard Reference Style. This assignment is split into two parts:Section 1: (approx....Assessment 4Assessment Type: Group Assignment —ReportPurpose: To allow students to demonstrate their mastery of the subject, and further their team working skills. This assessment relates to learning outcomes...Assignment 2BFA504 Semester 1, 2021Data Analytics and Data VisualizationAssignment Type: IndividualWeighting: 20%Due Date: 10th of May (Monday: 11:59 PM)Submission: Upload files on to MyLO. Click here...• Determine the level of materiality to be used for the audit of the group accounts for the year ending in 2020. Your answer should include a discussion of the nature of materiality, and a description...Assessment Details and Submission GuidelinesAssessment Type: Individual Assignment % of total: 25%Assessment Date: End of Week 07 Learning Outcomes: 1,2,3 & 4Summative: Yes Duration/Word Length: 1500...Assessment 4 Marking Rubric: Ethical Concepts Part 2 MC Quiz - Value 5%Criteria Fail Pass Credit Distinction High Distinction Weighting% (0 - 49%) (50 - 64%) (65 - 74%) (75 - 84%) (85-100%)Number of correct...EXERCISE 4To be completed by the TraineeYou must include this page with your Exercise 4 submissionAlternatively you can retype the details as a front page to your ExerciseTrainee name _________________________________________________________________________Trainee...Show All Questions