TASK DUE XXXXXXXXXXAT 6:00 PMQuestion 1Evaluate the statement “Accounting is all about numbers.”....

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TASK DUE XXXXXXXXXXAT 6:00 PMQuestion 1Evaluate the statement “Accounting is all about numbers.”. Using the definition of accounting to justify your answer.( maximum 250 words)Question 2Financial 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 3On 1 July 2018 Nicole Andreou opened a beauty parlour. The following transactions occued 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 4The 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 Naation. 1. On 15 Feuary, Danielle Drip’s business boowed $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 cuent 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 5The 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.

Suvrat · Accepted Answer

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
	b
	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,

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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