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ACF5950-Assignment-2801656-kaidi Zhang
ACF5950-Assignment-2801656-kaidi Zhang
Account Unadjusted T/B Adjustments Adjusted T/B Income Statement Balance Sheet
DR CR DR CR DR CR DR CR DR CR
Cash At Bank $11,183 $11,183 $11,183
Account Receivable $27,802 $27,802 $27,802
Motor Vehicle $37,915 $37,915 $37,915
Prepaid Rent $3,908 $1,303 $2,605 $2,605
Prepaid Insurance $2,178 $1,089 $1,089 $1,089
Acc. Depn. - Motor Vehicle $555 $555 $555
Account Payable $9,257 $9,257 $9,257
Bank Loan (due 2022) $24,994 $24,994 $24,994
Accrued Interest Expense $187 $187 $187
Accrued Interest Revenue
Accrued Staff Wages $364 $364 $364
Capital $63,730 $63,730 $63,730
Drawings $1,153 $1,153 $1,153
Income Tax Expense
Staff Wages Exp $5,092 $364 $5,456 $5,456
Motor Vehicle Exp $385 $385 $385
Interest Exp $187 $187 $187
Sundry Exp $272 $272 $272
Bad and Doubtful Debts Expense
Rent Expense $1,303 $1,303 $1,303
Insurance Exp $1,089 $1,089 $1,089
Depreciation Exp $1,428 $1,428 $1,428
Income Tax Payable
Advertising Exp $1,943 $1,943 $1,943
Furniture $20,940 $20,940 $20,940
Promotional Material Supplies $1,305 $198 $1,107 $1,107
Acc. Depn. - Furniture $873 $873 $873
Rental Commission Rev $6,741 $6,741 $6,741
Auction Commission Rev $5,509 $5,509 $5,509
Advertising Fees Rev $3,845 $3,845 $3,845
Cost of Goods Sold
Promotional Materials Exp $198 $198 $198
Subtotal $12,261 $16,095 $103,794 $99,960
Profit (Loss) $3,834 $3,834
Total $114,076 $114,076 $4,569 $4,569 $116,055 $116,055 $16,095 $16,095 $103,794 $103,794
Subject: ACF5950
Assignment #: 145
Student Name: ZHANG, KAIDI
Student ID: 29801656
Tutorial: SEMINAR-06
Realtor21 - Income Statement
For the Month ended 30 June 2018
$ $
Revenue
Rental Commission Revenue 6741
Auction Commission Revenue 5509
Advertising Fees Revenue 3845
Total revenue 16095
Expense
Staff Wages Expense (5456)
Motor Vehicle Expense (385)
Sundry Expense (272)
Advertising Expense (1943)
Depreciation Expense (1428)
Interest Expense (187)
Insurance Expense (1089)
Rent Expense (1303)
Promotional Materials Expense (198)
Total expense (12261)
Liabilities
Current Liabilities
Account Payable 9257
Accrued Interest Expense 187
Accured Staff Wages 364
Total Current Liabilities 9808
Non-current Liabilities
Bank Loan(due 2022) 24994
Total Non-Current Liabilities 24994
Total Liabilities 34802
Owner's Equity
Capital 63730
Drawings (1153)
Retained Earnings 3834
Total Owner's Equity 66411
Total Liabilities and Owners' Equity 101213
Realtor 21-Unjusted Trial Balance
As at 30 June 2018
Account No. Account Name Debit($) Credit($)
Cash at Bank 11,183
Accounts Receivable 27,802
Prepaid Rent 3,908
Prepaid Insurance 2,178
Promotional Material Supplies 1,305
Motor Vehicle 37,915
Furniture 20,940
Accounts Payable 9,257
Bank Loan (due 2022) 24,994
Capital 63,730
Drawings 1,153
Rental Commission Revenue 6,741
Auction Commission Revenue 5,509
Advertising Fees Revenue 3,845
Staff Wages Expense 5,092
Motor Vehicle Expense 385
Sundry Expense 272
Advertising Expense 1,943
Total 114,076 114,076
General Journal Entries
(Excluding Balance-Day Adjustments)
Date Accounts Debit($) Credit($)
1-Jun Cash at Bank 10,221
Accounts Receivable 23,775
Promotional Material Supplies 538
Motor Vehicle 37,915
Furniture 20,940
Accounts Payable 9,663
Bank Loan(due 2020) 24,994
Capital 58,732
(Record Opening Balance)
1-Jun Prepaid Insurance 2,178
Cash at Bank 2,178
(Prepaid Insurance by cash)
2-Jun Accounts Receivable 956
Auction Commision Revenue 956
(Auction Commision Revenue on credit)
3-Jun Prepaid Rent 3,908
Cash at Bank 3,908
(Prepaid Rent by cash)
3-Jun Promotional Material Supplies 307
Cash at Bank 307
(Purchase Promotional Material Supplies by cash)
4-Jun Advertising Expense 344
Cash at Bank 344
(Advertising Expense by cash)
6-Jun Cash at Bank 934
Advertising Placement Fees Revenue 934
(Advertising Placement Fees Revenue by cash)
7-Jun Accounts Receivable 1,440
Rental Commission Revenue 1,440
(Rental Commission Revenue on credit)
8-Jun Cash at Bank 1,777
Auction Commision Revenue 1,777
(Auction Commision Revenue by cash)
8-Jun Staff Wages Expense 1,273
Cash at Bank 1,273
(Staff Wages Expense by cash)
9-Jun Drawings 582
Cash at Bank 582
(Cash Withdrawal by Owner)
10-Jun Cash at Bank 1,655
Accounts Receivable 1,655
(Cash Received from Account Customers)
11-Jun Accounts Receivable 1,045
Auction Commision Revenue 1,045
(Auction Commision Revenue on credit)
11-Jun Accounts Payable 645
Cash at Bank 645
(Cash Payment to Accounts Payable)
12-Jun Cash at Bank 971
Advertising Placement Fees Revenue 971
(Advertising Placement Fees Revenue by cash)
12-Jun Accounts Receivable 1,462
Rental Commision Revenue 1,462
(Rental Commission Revenue on credit)
12-Jun Promotional Material Supplies 460
Cash at Bank 460
(Purchase Promotional Material Supplies by cash)
14-Jun Drawings 571
Cash at Bank 571
(Cash Withdrawal by Owner)
15-Jun Staff Wages Expense 1,273
Cash at Bank 1,273
(Staff Wages Expense by cash)
16-Jun Accounts Receivable 942
Advertising Placement Fees Revenue 942
(Advertising Placement Fees Revenue on credit)
17-Jun Cash at Bank 1,161
Accounts Receivable 1,161
(Cash Received from Account Customers)
19-Jun Advertising Expense 636
Accounts Payable 636
(Advertising Expense on credit)
20-Jun Cash at Bank 1,731
Auction Commision Revenue 1,731
(Auction Commision Revenue by cash)
21-Jun Advertising Expense 587
Accounts Payable 587
(Advertising Expense on credit)
21-Jun Sundry Expense 171
Cash at Bank 171
(Sundry Expense by cash)
21-Jun Cash at Bank 1,843
Rental Commision Revenue 1,843
(Rental Commission Revenue by cash)
22-Jun Staff Wages Expense 1,273
Cash at Bank 1,273
(Staff Wages Expense by cash)
22-Jun Accounts Receivable 998
Advertising Placement Fees Revenue 998
(Advertising Placement Fees Revenue on credit)
23-Jun Advertising Expense 376
Cash at Bank 376
(Advertising Expense by cash)
24-Jun Sundry Expense 101
Cash at Bank 101
(Sundry Expense by cash)
24-Jun Motor Vehicle Expense 168
Cash at Bank 168
(Motor Vehicle Expense by cash)
25-Jun Motor Vehicle Expense 217
Cash at Bank 217
(Motor Vehicle Expense by cash)
25-Jun Accounts Payable 984
Cash at Bank 984
(Cash Payment to Accounts Payable)
25-Jun Cash at Bank 4,998
Capital 4,998
(Cash Contributed by Owner)
26-Jun Cash at Bank 1,996
Rental Commision Revenue 1,996
(Rental Commission Revenue by cash)
29-Jun Staff Wages Expense 1,273
Cash at Bank 1,273
( Staff Wages Expense by cash)
General Ledger for the Month of June 2018
Cash at Bank
1-Jun Opening Balance $10,221 1-Jun Prepaid Insurance $2,178
6-Jun Advertising Placement Fees Revenue $934 3-Jun Prepaid Rent $3,908
8-Jun Auction Commision Revenue $1,777 3-Jun Promotional Material Supplies $307
10-Jun Accounts Receivable $1,655 4-Jun Advertising Expense $344
12-Jun Advertising Placement Fees Revenue $971 8-Jun Staff Wages Expense $1,273
17-Jun Accounts Receivable $1,161 9-Jun Drawing $582
20-Jun Auction Commision Revenue $1,731 11-Jun Accounts Payable $645
21-Jun Rental Commision Revenue $1,843 12-Jun Promotional Material Supplies $460
25-Jun Capital $4,998 14-Jun Drawing $571
26-Jun Rental Commision Revenue $1,996 15-Jun Staff Wages Expense $1,273
24-Jun Sundry Expense $171
24-Jun Staff Wages Expense $1,273
23-Jun Advertising Expense $376
24-Jun Sundry Expense $101
24-Jun Motor Vehicle Expense $168
25-Jun Motor Vehicle Expense $217
25-Jun Accounts Payable $984
29-Jun Staff Wages Expense $1,273
30-Jun Closing Balance $11,183
$27,287 $27,287
1-Jul Opening Balance $11,183
Accounts Receivable
1-Jun Opening Balance $23,775 10-Jun Cash at Bank $1,655
2-Jun Auction Commision Revenue $956 17-Jun Cash at Bank $1,161
7-Jun Rental Commision Revenue $1,440
11-Jun Auction Commision Revenue $1,045
12-Jun Rental Commision Revenue $1,462
16-Jun Advertising Placement Fees Revenue $942
22-Jun Advertising Placement Fees Revenue $998 30-Jun Closing Balance $27,802
$30,618 $30,618
1-Jul Opening Balance $27,802
Prepaid Insurance
1-Jun Cash at Bank $2,178 30-Jun Closing Balance $2,178
$2,178 $2,178
1-Jul Opening Balance $2,178
Prepaid Rent
3-Jun Cash at Bank $3,908 30-Jun Closing Balance $3,908
$3,908 $3,908
1-Jul Opening Balance $3,908
Furniture
1-Jun Opening Balance $20,940 30-Jun Closing Balance $20,940
$20,940 $20,940
1-Jul Opening Balance $20,940
Motor Vehicle
1-Jun Opening Balance $37,915 30-Jun Closing Balance $37,915
$37,915 $37,915
1-Jul Opening Balance $37,915
Accounts Payable
11-Jun Cash at Bank $645 1-Jun Opening Balance $9,663
25-Jun Cash at Bank $984 19-Jun Advertising Expense $636
30-Jun Closing Balance $9,257 21-Jun Advertising Expense $587
$10,886 $10,886
1-Jul Opening Balance $9,257
Bank Loan
30-Jun Closing Balance $24,994 1-Jun Opening Balance $24,994
$24,994 $24,994
1-Jul Opening Balance $24,994
Capital
1-Jun Opening Balance $58,732
30-Jun Closing Balance $63,730 25-Jun Cash at Bank $4,998
$63,730 $63,730
1-Jul Opening Balance $63,730
Drawings
9-Jun Cash at Bank $582
14-Jun Cash at Bank $571
$1,153
Sundry Expense
21-Jun Cash at Bank $171
24-Jun Cash at Bank $101
$272
The cash basis and accrual basis of accounting are two different methods used to record accounting
transactions. The core underlying difference between the two methods is in the timing of transaction
recordation.
Cash basis:Revenue is recorded when cash is received from customers, and expenses are recorded when
cash is paid to suppliers and employees.It is easy because of no complex accounting transactions.Some small
companies choose this method. However, the relatively random timing of cash receipts and expenditures
will cause that reported results can vary between unusually high and low profits.
Accrual basis: Revenue is recorded when earned and expenses are recorded when consumed.a company's
financial statements can reflect more information if they have been prepared using the accrual basis, which
can be audited . In addition, the financial results of a business under the accrual basis are more likely to
match revenues and expenses in the same reporting period, so that the true profitability of an organization
can be discerned.Some large companies choose this method.
Cash Profit equals that cash revenue minus cash expense. However, Accrual Profit additionally includes
accounts receivable, accounts payable, prepaid expenses, prepaid revenue and depreciation expenses.
According above table and general ledger, recording by cash basis method, the firm's profit is
negative($2883). Because most of revenue transactions are recorded by accounts receivable(total$6843).
Customers use cash seldom. In addition, for expense, staff wages expense are paid by cash(total$5092).
Prepaid rent($3908) and insuranc($2178) are also paid by cash for several months expense. These amount of
cash are large, which makes the firm's profit is negative.However, the profit represented by Income
Statement is positive($3834) with using accrual basis. By this method we record the revenue and expense
which belong to the same reporting period, which truely responses the firm's profit.