FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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your line manager wants to assess your understanding and ability to prepare and produce the appropriate final accounts such as profit and loss account, owners’ equity statement, and balance sheet as well as how these accounts are differed under different forms and types of business.
Produce the final accounts for a sole trader business (Software Programming Company) from task 1 including profit and loss account, owners’ equity statement, and balance sheet for the Period ended July 31st. using the trial balance that you have produced in problem 2/ task1
2) Make the adjustments entries for the following transactions before preparing the final accounts for LLC company:
On the 20th of October 2019, the business purchased supplies for 8000 cash. On 31st of December, 2019 the business found out that the supplies still on hand were 4000 only.
The business has a Equipment with book value of 17000, with annual depreciation rate of 10%.
On the 1st of July the business purchased a one-year insurance policy for 1500. Prepare the adjusting
entry on 31st of December 2019.
The employees are paid salaries on the 27th of each month. Prepare the adjusting entry of 4500 of
the employees’ salaries that are not yet paid on the 31st of December, 2019.
3) Use the given adjusted trial balance for ABC, LLC (Table 2) to prepare the final accounts including profit and loss account, retained earnings statement, and balance sheet for the Period ended December 31st.
4) Compare the essential features of each financial account statement to analyse the differences between them in terms purpose, structure and content.
Adjusted Trial Balance of the ABC, LLC for the Period ended 31st of December
Transcribed Image Text:Trial balance
Account
Debit
Credit
Account classification
Cash
70152
Assets
Сapital
100000
Equity
Equipment
40000
Assets
Supplies
3400
Assets
A/P
3400
Liabilities
Services revenue
16000
Equity
A/R
5000
Assets
Inventory
300
Assets
Sales. Revenue
12000
Equity
Sales return
1200
Equity
Sales discount
648
Equity
Drawings
1500
Equity
Unearned. Revenue
5000
Liabilities
Rent. Exp
1000
Equity
Salaries. Exp
2600
Equity
Utilities. Exp
1600
Equity
Prepaid. Insurance
3000
Assets
Cost of sales
6000
Equity
Total
136400
136400
Transcribed Image Text:Table 2
Adjusted Trial Balance of the ABC, LLC for the Period ended 31st of December
Account Title
Dr.
Cr.
Cash
110000
Accounts Receivable
15000
Supplies
4000
Prepaid Insurance
10000
Equipment
17000
Accumulated depreciation – Equipment
2000
Unearned Service Revenue
9000
Taxes Payable
2000
Salaries payable
2500
Share Capital
110000
Retained Earnings
25000
Dividends
22000
Service Revenue
39500
Insurance expenses
1500
Salaries Expense
4500
Depreciation Expense
2000
Supplies expenses
4000
Total
190000
190000
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