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TASK DUE XXXXXXXXXXAT 6:00 PM Question 1 Evaluate the statement “Accounting is all about numbers.”. Using the definition of accounting to justify your answer.( maximum 250 words) Question 2 Financial...

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TASK DUE XXXXXXXXXXAT 6:00 PM
Question 1
Evaluate the statement “Accounting is all about numbers.”. Using the definition of accounting to justify your answer.( maximum 250 words)
Question 2
Financial data for Safety Hire as of 30 June 2019 are:
Prepare an income statement for the month of June and a balance sheet in account format for Safety Hire as at 30 June 2019.
Question 3
On 1 July 2018 Nicole Andreou opened a beauty parlour. The following transactions occu
ed during the first month of operations (ignore GST).
Use the following account titles and numbers: Cash at Bank, 100; Accounts Receivable, 101; Supplies, 102; Equipment, 103; Loan Payable, 200; Nicole Andreou, Capital, 300; Nicole Andreou, Drawings, 301; Revenue, 400; Rent Expense, 500; Advertising Expense, 501; Insurance Expense, 502; Telephone Expense, 503.
Required:
a) Prepare the general journal entries to record the above transactions.
) Post the entries from the general journal to the general ledger accounts (running balance format) and enter the posting references in the general journal.
c) Prepare a trial balance as at 31 July 2018.
Question 4
The financial year for Drip Dry Cleaning Services ends on 30 June. Using the following information, make the necessary adjusting entries at year-end. Ignore GST. Ignore Na
ation.
1. On 15 Fe
uary, Danielle Drip’s business bo
owed $16 000 from Northern Bank at 8% interest. The principal and interest are payable on 15 August.
2. Drip Dry Cleaning Services purchased a 1-year insurance policy on 1 March of the cu
ent year for $660. A 3-year policy was purchased on 1 November of the previous year for $2700. Both purchases were recorded by debiting Prepaid Insurance.
3. The business has two part-time employees who each earn $220 a day. They both worked the last 3 days in June for which they have not yet been paid.
4. On 1 June, the Highup Hotel paid the business $2100 in advance for doing their dry cleaning for the next 3 months. This was recorded by a credit to Unearned Dry Cleaning Revenue.
5. The supplies account had a $280 debit balance on 1 July. Supplies of $1560 were purchased during the year and $190 of supplies are on hand as at 30 June.
Required: Prepare the necessary adjusting entries at 30 June.
Question 5
The adjusted trial balance columns in the worksheet of Elliot Painting Services are as follows.
Required:
a) Complete the worksheet.
) Prepare the closing entries necessary at 30 June 2019, assuming that this date is the end of the entity’s accounting period.
Answered Same Day May 27, 2021

Solution

Suvrat answered on May 28 2021
146 Votes
Question 1
Evaluate the statement “Accounting is all about numbers.” Using the definition of accounting to justify your answer.
Ans –
Accounting is not all about numbers. Accounting is defined as the process of identifying, measuring, recording and communicating economic information to assist users of the information in making informed economic decisions. Accounting is an art which has numbers as its one of the characters.
It is an art in which the first stage of identification involves basic and important knowledge of the company and its processes to identify an economic event useful for accounting. The next step involves using various judgements and measuring techniques to measure the economic event. The next involves recording of those events by properly categorising them and then communicating them to the users in a proper manner in the form of financial statements.
Thus Accounting is more than just numbers.
Question 2
Required:
Prepare an income statement for the month of June and a balance sheet in account format for Safety Hire as at 30 June 2019.
Ans –
    SAFETY HIRE
    INCOME STATEMENT
    For the month of June 2020
    Particulars
    Amount ($)
    Sales:
    
    Revenue from operations
    63,000
    Equipment hire income
    1,70,000
    Net Sales
    2,33,000
    Less: Cost of goods Sold
    
    Purchases
    40,000
    Wage expense
    75,000
     
    1,15,000
    Gross Margin
    1,18,000
    Less: Operating expenses
    
    Advertising expenses
    30,000
    Electricity expense
    18,000
    Telephone expense
    7,500
    Total expenses
    55,500
    Net Income
    62,500
    SAFETY HIRE
    BALANCE SHEET
    As at June 2020
    Assets
    Amount ($)
    Liabilities
    Amount($)
    Accounts receivable
     63,000
    Accounts Payable
     40,000
    Cash at Bank
     45,000
    Mortgage Payable
     50,000
    Building
     85,000
    Loan Payable
     
    Land
     75,000
    Equity
     
    Hire Equipment
     1,80,000
    Michael Donato Capital
     2,95,500
     
     
    Add: Net Income
     62,500
     
     
    Total Equity
     3,58,000
    Total Assets
     4,48,000
    Total Equity & Liabilities
     4,48,000
Question 3
Required:
a) Prepare the general journal entries to record the above transactions.
Ans –
    Date
    Ref
    Acc No.
    Acc. Name
    Debit ($)
    Credit ($)
    02-Jul
    a
    100
    Cash at Bank
    1,20,000
    
     
     
    300
    To Nicole Andreou, Capital
    
    1,20,000
     
     
     
    (Being capital introduced)
    
    
    02-Jul
    
    500
    Rent expense
    1,800
    
     
     
    100
    To Cash at Bank
    
    1,800
     
     
     
    (Being rent paid)
    
    
    03-Jul
    c
    103
    Equipment
    70,000
    
     
     
    100
    To Cash at Bank
    
    32,000
     
     
    200
    To Loan Payable
    
    38,000
     
     
     
    (Being equipment purchased)
    
    
    04-Jul
    d
    102
    Supplies
    8,400
    
     
     
    100
    To Cash at Bank
    
    8,400
     
     
     
    (Being supplies purchased)
    
    
    06-Jul
    e
    501
    Advertising expenses
    890
    
     
     
    100
    To Cash at Bank
    
    890
     
     
     
    (Being advertising expenses paid)
    
    
    16-Jul
    f
    100
    Cash at Bank
    3,250
    
     
     
    101
    Account receivable
    620
    
     
     
    400
    To revenue
    
    3,870
     
     
     
    (Being revenue booked)
    
    
    20-Jul
    g
    502
    Insurance expenses
    480
    
     
     
    100
    To Cash at Bank
    
    480
     
     
     
    (Being insurance expense paid)
    
    
    23-Jul
    h
    100
    Cash at Bank
    140
    
     
     
    101
    To Accounts receivable
    
    140
     
     
     
    (Being amount received)
    
    
    28-Jul
    i
    301
    Nicole Andreou, Drawings
    560
    
     
     
    100
    To Cash at Bank
    
    560
     
     
     
    (Being amount withdrawn)
    
    
    31-Jul
    j
    100
    Cash at Bank
    3,680
    
     
     
    101
    Account receivable
    580
    
     
     
    400
    To revenue
    
    4,260
     
     
     
    (Being revenue booked)
    
    
    31-Jul
    k
    503
    Telephone...
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