MACQUARIE BUSINESS SCHOOL

Department of Accounting
and Corporate
Governance

ACCG1000 Accounting in
Society
WEEK 9 TUTORIAL 9: Financial Accounting for Business
– Preparing Financial Statements

Tutorial Discussion Questions

Question 1.5 (p.61)
Listed here are some items found in the financial statements of Ruth Weber Ltd.
Indicate in which financial statement(s) each item would appear.

Item Statement
(a) Sales revenue
(b) Office Equipment
(c) Accounts receivable
(d) Interest expense
(e) Share capital
(f) Loan payable

Question 2
Identify whether each of the following accounts is current or non-current account.

Asset Liabilities
Account Non-
Current Non-Current Current
Current
Cash at Bank
Accounts Receivable
Office Supplies
Prepaid Insurance
Prepaid Rent
Equipment
Accumulated Depreciation
Accounts Payable
Revenue Received in Advance
Wages Payable
Loan Payable
Electricity Payable

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EXERCISE 1.4 Part a)

The following items were taken from White Ltd’s financial statements for 2021.
(All dollars are in thousands.)

Required:
a) In each case identify whether the item is an asset (A), liability (L),
equity (Eq), revenue (R) or expense (Ex).

(b) Calculate profit for White Ltd for the year ended 30 June 2021.

White Ltd

Code Items Amount Account

Type
EQ Equity
Retained earnings $2,000
E Expenses
Cost of sales 55,700
E Expenses
Wages expense 18,300
A Asset
Cash 11,200
L Liability
Current payables 14,500
E Expenses
Interest expense 8,000
E Expenses
Other expense 10,300
E Expenses
Depreciation expense 1,800
L Liability
Non-current borrowings 22,000
A Asset
Inventories 4,500
R Revenue
Sales revenue 144,000
A Asset
Accounts Receivable 12,000
EQ Equity
Reserves 8,000
E Expenses
Income tax expense 13,700
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 EQ Equity
Contributed equity 30,000
A Asset
Property and Equipment 20,000

Part b)
Calculation of Profit or Loss
White Ltd
for the year ended 30 June 2021

$
140000
Sales revenue
84000
Less cost of sales
56000
Gross profit

Expenses:

Wages expense

Interest expense

Other expense

Depreciation expense

Income tax expense

Total expenses

Profit

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EXERCISE 1.10 PARTS A & C ONLY
These financial statement items are for Bear Pty Ltd at year-end, 30 June 2023.

Required
(a) Prepare a statement of profit or loss for the year.
(c) Prepare a classified statement of financial position at 30 June 2023.

(a)

Bear Pty Ltd

Statement of Profit & Loss
for the year ended 30 June 2023

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(c)

Bear Pty Ltd

Statement of Financial Position
as at 30 June 2023
Current assets:

Total current assets

Non-current assets:

Total non-current assets

Total Assets

Current liabilities:

Total current liabilities

Non-current liabilities

Total non-current liabilities

Total liabilities
Net Assets

Equity

Total equity

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Additional Self-Study Questions
Adjusting Entries

Date Account Debit Credit

2022

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 Closing Entries
Date Account Debit Credit
2022
30 June

Close revenue accounts

30 June

Close expense accounts

30 June

Close P&L Summary account and

transfer profit to capital

Close drawings to capital

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3.
Superquick Couriers
Statement of Profit or Loss
for the year ended 30 June 2022

$
Income

Expenses:

Total expenses

Profit

Superquick Couriers
Statement of Changes in Equity
for the year ended 30 June 2022
$

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 Superquick Couriers
Statement of Financial Position
as at 30 June 2022

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In-class activity

Fine Wines

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