Accounting Cycle MBA 906
- Subject Code :
MBA-906
KINGSOWNINSTITUTE*
SuccessinHigherEducation
MBA 906
Assessment 2
Accounting Cycle
Accounting Cycle (15 Marks)
1.0FinancialInformation
1.1ChartofAccounts
|
# |
AccountName |
# |
AccountName |
|
101 |
CashatBank |
301 |
Bill,Capital |
|
102 |
AccountsReceivable |
302 |
Bill,Drawings |
|
103 |
OfficeSupplies |
401 |
ServiceRevenue |
|
104 |
PrepaidSubscriptions |
501 |
UtilitiesExpense |
|
110 |
OfficeFurniture |
502 |
WagesExpense |
|
111 |
AccumulatedDepreciation-Furniture |
503 |
DepreciationExpense-Furniture |
|
201 |
AccountsPayable |
504 |
SuppliesExpense |
|
202 |
UnearnedServiceRevenue |
505 |
SubscriptionsExpense |
|
204 |
InterestPayable |
506 |
InterestExpense |
|
211 |
LoanPayable |
1.2FinancialTransactions
FinancialTransactionsduringtheyear
|
Date |
Transactions |
Amount |
|
1/04/2023 |
Bill invested cash into his business |
$ |
|
1/04/2023 |
Borrowed money from Rabo Bank. Interest rate is 6% per annum. |
$ |
|
1/04/2023 |
Purchased office furniture in cash. The furniture has a useful life of 5 years with no salvage value. The business uses a straight-line method |
$ |
|
15/04/2023 |
Purchased office supplies on account |
$ |
|
1/05/2023 |
Received 6 months bookkeeping service fee, and recorded the advanced payment on two balance sheet accounts |
$ |
|
13/05/2023 |
Paid the bill received on 15/04/2023 |
$ |
|
1/06/2023 |
Paid for 12-month subscription. Bill recorded the payment as a debit to Prepaid subscriptions and a credit to Cash. The subscription started from June 2023 |
$ |
|
23/06/2023 |
Provided services on account |
$ |
|
30/06/2023 |
Paid wages to a short-term contract employee |
$ |
|
30/06/2023 |
Received an invoice for utilities used |
$ |
|
30/06/2023 |
Bill made withdrawal from business account |
$ |
AdjustmentTransactionsasat30June2023
|
Date |
Transactions |
|
30/06/2023 |
DepreciationExpenseforofficefurniture |
|
30/06/2023 |
Duringtheperiodthebusinessusedonethirdofsupplies |
|
30/06/2023 |
Adjustmentofunearnedservicerevenue |
|
30/06/2023 |
Subscriptionfeeexpired |
|
30/06/2023 |
TheinterestonloanforthemonthofJuneisnotpaidyet |
- GeneralJournal
|
Date |
Accounts |
Debit |
Credit |
|
1/04/2023 |
|||
|
Investmentbytheowner |
|||
|
1/04/2023 |
|||
|
Loanborrowed |
|||
|
1/04/2023 |
|||
|
Purchasedofficefurnitureincash |
|||
|
15/04/2023 |
|||
|
Purchasedsuppliesonaccount |
|||
|
1/05/2023 |
|||
|
AdvancedReceiptof6-monthservice |
|||
|
13/05/2023 |
|||
|
Paymentofoutstandingbill |
|||
|
1/06/2023 |
|||
|
Prepaymentfor12monthssubscription |
|||
|
23/06/2023 |
|||
|
ServiceRenderedon account |
|||
|
30/06/2023 |
|||
|
Wagesexpensepaid |
|||
|
30/06/2023 |
|||
|
Utilityexpenseincurred |
|||
|
30/06/2023 |
|||
|
Withdrawalbytheowner |
- GeneralLedger
|
Cash at Bank |
|||
|
1/04/2023 |
1/04/2023 |
||
|
1/04/2023 |
13/05/2023 |
||
|
1/05/2023 |
1/06/2023 |
||
|
30/06/2023 |
|||
|
30/06/2023 |
|||
|
EB |
|||
|
Accounts Receivable |
|||
|
23/06/2023 |
|||
|
EB |
|||
|
Office Supplies |
|||
|
15/04/2023 |
|||
|
EB |
|||
|
Prepaid Subscriptions |
|||
|
01/06/2023 |
|||
|
EB |
|||
|
Office Furniture |
|||
|
01/04/2023 |
|||
|
EB |
|||
|
Bill, Capital |
|||
|
1/04/2023 |
|||
|
EB |
|||
|
Bill, Drawings |
|||
|
30/06/2023 |
|||
|
EB |
|||
|
Accounts Payable |
|||
|
13/05/2023 |
15/04/2023 |
||
|
30/06/2023 |
|||
|
EB |
|||
|
Loan Payable |
|||
|
01/04/2023 |
|||
|
EB |
|||
|
Unearned Service Revenue |
|||
|
01/05/2023 |
|||
|
EB |
|||
|
Wages Expense |
|||
|
01/05/2023 |
|||
|
Utilities Expense |
|||
|
01/05/2023 |
|||
1.5Worksheet
Bills ConsultingServicesWorksheet
fortheyearended30June2023
|
AccountName |
UnadjustedTrial Balance |
Adjustments |
AdjustedTrialBalance |
Incomestatement |
Balancesheet |
|||||
|
Debit |
Credit |
Debit |
Credit |
Debit |
Credit |
Debit |
Credit |
Debit |
Credit |
|
|
CashatBank |
||||||||||
|
AccountsReceivable |
||||||||||
|
OfficeSupplies |
||||||||||
|
PrepaidSubscriptions |
||||||||||
|
OfficeFurniture |
||||||||||
|
Accum.Depreciation- Furniture |
||||||||||
|
AccountsPayable |
||||||||||
|
UnearnedServiceRevenue |
||||||||||
|
InterestPayable |
||||||||||
|
LoanPayable |
||||||||||
|
Bill,Capital |
||||||||||
|
Bill,Drawings |
||||||||||
|
ServiceRevenue |
||||||||||
|
UtilitiesExpense |
||||||||||
|
Wages Expense |
||||||||||
|
DepreciationExpense- Furniture |
||||||||||
|
SuppliesExpense |
||||||||||
|
SubscriptionsExpense |
||||||||||
|
InterestExpense |
||||||||||
|
Total |
||||||||||
|
Profitfortheperiod |
||||||||||
1.6FinancialStatements
Bills ConsultingServices
IncomeStatement
fortheyearended 30June2023
|
Income |
|
|
ServiceRevenue |
|
|
TotalIncome |
|
Expenses |
|
|
UtilitiesExpense |
|
|
WagesExpense |
|
|
DepreciationExpense-Furniture |
|
|
SuppliesExpense |
|
|
SubscriptionsExpense |
|
|
InterestExpense |
|
|
TotalExpenses |
|
NetIncomebeforeTax |
Alex,Capital-Beginning
Bills Consulting ServicesStatement of changes in Equity fortheyearended30June2023
|
Add:Additionalcontribution |
||
|
Add:NetIncome(Loss)duringtheperiod |
||
|
Less:Drawings |
IncreaseorDecreaseinEquity
Alex,Capital-Ending
Bills Consulting ServicesStatementoffinancialposition As at 30 June 2023
ASSETS
|
CashatBank |
||
|
AccountsReceivable |
||
|
OfficeSupplies |
||
|
PrepaidSubscriptions |
||
|
OfficeFurniture |
||
|
AccumulatedDepreciation-Furniture |
||
|
TotalAssets |
||
LIABILITIES
|
AccountsPayable |
|
|
UnearnedServiceRevenue |
|
|
InterestPayable |
|
|
LoanPayable |
|
|
TotalLiabilities |
|
TotalAssets -TotalLiabilities |
EQUITY
|
Alex,Capital |
|
|
TotalEquity |
1.7 Theory questions (5 Marks)
- What are the 5 fundamental principles of ethics and summarize in bullet point form? (Read APES 110 Code of Ethics and cite the relevant paragraph) (300 words)
- Assume you are a Junior Accountant in a company, and you are asked by your Manager to deliberately change numbers in order to increase profits? Explain how you would deal with this considering the principles set out in APES 110. (200 words)
