Professional Documents
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Title 1
Financial Analysis
By Name
Course
Tutor
University
City, State
Date
Partial
Title 2
Assessment 1
Task 1.1
The asset register is also called the fixed asset register or simply a record that comprehensively
identifies all the capital that a business owns. Such register is a critical component in that it helps
the owner to immediately get information regarding the items description, date of purchase,
location of the assets, price of purchase, total depreciation and estimated salvage value. Such
information is important in communicating to the various companies stakeholders how such
assets were acquired, being held and how they expect to be disposed upon the end of their useful
financial lives.
Task 1.2
A sample card to register assets would be as follows
Task 1.3
There are different methods of depreciation, and each company can choose any depending on the
factors they undertake into considerations. The key reduction methods are straight line
depreciation, reducing balance depreciation, the sum of the year's digits depreciation and unit of
activity depreciation. With straight line depreciation method, same depreciation is charged over
the whole useful life of the assets. This process is quite easy to compute which makes it more
preferred among small business managers. With the reducing balance depreciation, the expenses
for depreciation reduce at an equal rate in line with the life of the asset. It is done to account for
the differences in time of the reduction the property takes (Ahmed, 2011).
Partial
Title 3
Task 1.4
ABC Ltd firm purchased the motor vehicles on 1st July 20x3 for $36,000 plus GST.
Given the depreciation rate as 37.5%, I am going to determine the reduction of ABC Limited for
four years by using the reducing balance method.
From the excel sheet, I compute the depreciation, book value and accumulated depreciation as
follows
Task 1.5
Completing the asset register which will also include depreciation schedule, the rate of reduction
is 20%.
Task 1.6
Task 2.2
Nichol Ltd pays $1,200 for an insurance policy 30 September 2014. This system is expected to
cover period 1st October 2014 to 30 September 2015. The financial year ends on 31st December.
It entails recording the journal entry on the date 30 September 2014 and December 2014
(Fabozzi & Drake, 2009).
Task 2.3
Expenses
Rent 750
Student loan payment 200
utilities 150
Food 300
Recreation 600
Car expenses 200
Clothing 150
Dr. Cr.
Bad Debt Expense 400
Interest payable 400
B. Work
Dr. Cr.
Depreciation expense-
equipment $840
Accumulated
Depreciation $840
C. Ranking
Dr. Cr.
Supplies Expense 2,150
Supplies 2,150
Task 2.5
Dr. Cr.
Supplies 2,150
Partial
Title 6
Assessment 3
Task 3
From the Trial, Balance below
Particulars Debit ($) Credit ($)
Cost of Goods Sold 348,583
Advertising products 13,045
Salaries - Sales Staff 44,929
Salaries -Office Staff 76,276
Insurance 8,053
Rates and Taxes 11,234
Light and Power 8,980
General expenses 13,434
Discount Allowed 4,040
Bank Charges and fees 892
Bad debts 2,315
Sales 732,600
Rent Income 8,000
Interest received 854
Stock 44,702
Accounts received 8,268
Bank 51,364
Accounts payable 14,555
GST Clearing 68,585
Land and Buildings 407,188
Plant and Machinery 94,000
Accumulated depreciation - buildings 5,700
Accumulated depreciation - plant & machinery 13,500
Drawings 17,151
Capital 310,660
1,154,454 1,154,454
Partial
Title 7
Task 3.1
Preparing journal entries to record balance day adjustments by requirement
1 Dr. Cr.
Cash 30,000
Common Stock 30,000
3 Dr. Cr.
Office Furniture 3,800
Accounts Payable 3,800
6 Dr. Cr.
Cash 10,800
Unearned Service Revenue 10,800
10 Dr. Cr.
Cash 140
Service Revenue 140
27 Dr. Cr.
Accounts Payable 700
Cash 700
30 Dr. Cr.
Wage Expense 3,000
Cash 3,000
E3 - 10
May-14
4 Dr. Cr.
Accounts Payable 700
Cash 700
7 Dr. Cr.
Accounts receivable 6,800
Service revenue 6,800
Partial
Title 8
8 Dr. Cr.
Supplies 850
Accounts Payable 850
9 Dr. Cr.
Equipment 1,000
Cash 1,000
17 Dr. Cr.
Salaries Expense 530
Cash 530
22 Dr. Cr.
Repairs expense 900
Accounts payable 900
29 Dr. Cr.
Prepaid Insurance 1,200
Cash 1,200
Partial
Title 9
Task 3.2
Preparing income statement (revenue statement) to reflect operating profit for the year ended 30
June 2014.
Whitworth Box
Income Statement
For the fiscal year ending 30 June 2014
Sales $732,600
Cost of goods sold 348,583
Gross Profit 384,017
Expenses
Advertising 13,045
Salaries (total) 121,205
Insurance 8,053
Depreciation 19,200
General Expenses 13,434
Taxes and Rates 11,234 186,171
Net Profit $197,846
Partial
Title 10
Task 3.3
Preparing balance sheet to reflect the financial position of Whitworth Box as at 30 June 2014
Whitworth Box
Balance Sheet Statement
As at 30 June 2014
Bank 119,411
Accounts Receivable 85,455
Inventory 41,600
Prepaid Expenses 14,500
Total Current Assets 260,966
Land 50,000
Buildings and Equipment 182,450
Accumulated Depreciation 78,900 103,550
Sales 191,400
Cost of sales 87,174
Gross Profit 104,226
Administrative
Executive Salaries 13,494
Insurance 682
Clerical 2,485
Depreciation of office equipment 934
Unadjusted Trial
Account Name Balance Adjustments Adjusted Trial Balance Income Statement balance sheet
Debit Credit Debit Credit Debit Credit Debit Credit Debit Credit