Prepare Financial Statements For Non-Reporting Entities Assignment
- Subject Code :
FNSACC414
- Country :
Australia
Part 4: Scenario
To complete this part of the assessment, read the scenario and complete the following task/s.
Scenario: Parternships
On 1 July 2021, George and Alex agree to amalgamate their businesses to form Central Perk Cafe. The balance sheets of each at the time of the agreement were as follows:
The agreement provided that:
- George’s assets and liabilities will be taken over at book value except:
- Accounts Receivable are expected to realize $1,100
- Land and buildings are to be valued at $45,000
- Alex’s assets and liabilities will be taken over at book value except:
- Inventory to be written down by 10%
- Bank overdraft will be paid out prior to entry into the partnership.
- Both partners agreed that their capital would be fixed at $55,000 and any shortfall would be made up by a contribution of cash.
Task:1 Formations
A. General journal entries
As part of preparing financial statements for the formation of a partnership your manager has asked you to prepare general journal entries to record the formation of the partnership.
Use the template in FNSACC414_AE_Sk2of3_Appx_ExcelTemplates2.xlsx (Part 2 Task 1A) to complete the task.
B. Balance sheet
As part of preparing financial statements for the formation of a partnership your manager has asked you to prepare a balance sheet of the new partnership.
Use the template in FNSACC414_AE_Sk2of3_Appx_ExcelTemplates2.xlsx (Part 2 Task 1B) to complete the task.
Scenario: Parternship operation
Noor, Blake and Alice share profits and losses in the ratio of 5:4:3. The Trial Balance for the year ending 30 June 2022 before final adjustments was:
Other information:
- Salary due (not paid) to Noor – $19,000
- Interest on loan due (not paid) to Blake – $2,000
As per the partnership agreement, interest on fixed capital is 7% and interest on drawings is 15%. General Journal entries for the end of period adjustments.
statement of performance
A. Journals for end of period adjustments
You are required to complete general journal entries to record the end of period adjustments.
Use the template in FNSACC414_AE_Sk2of3_Appx_ExcelTemplates2.xlsx (Part 2 Task 2A) to complete the task.
B. Income statement
You are required to complete an income statement for the year ending 30 June 2022. Use the template in FNSACC414_AE_Sk2of3_Appx_ExcelTemplates2.xlsx (Part 2 Task 2B) to complete the task.
Task 3: statement of financial position
A. Profit and loss appropriation account
You are now required to complete the profit and loss appropriation account.
Use the template in FNSACC414_AE_Sk2of3_Appx_ExcelTemplates2.xlsx (Part 2 Task 3A) to complete the task.
B. Current accounts for each partner
You are now required to complete the current accounts for each partner.
Use the template in FNSACC414_AE_Sk2of3_Appx_ExcelTemplates2.xlsx (Part 2 Task 3B) to complete the task.
C. Balance sheet as at 30 June 2022
You are now required to complete a balance sheet as at 30 June 2022.
Use the template in FNSACC414_AE_Sk2of3_Appx_ExcelTemplates2.xlsx (Part 2 Task 3C) to complete the task.
Task4: cash flow statement
From the following Cash Book details you are required to prepare the Partnership Cash flow statement for Jonathan and Ameera.
Use the template in FNSACC414_AE_Sk2of3_Appx_ExcelTemplates2.xlsx (Part 2 Task 4) to complete the task.
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