Reference no: EM131945352
Question: Period 1: Task 1: Enter the above transactions in the appropriate subsidiary book/book of original entry and then post the transactions to the relevant ledgers. Ensure that you use all the relevant books. The opening entries should be shown in the General Journal for the period.
Task 2: Prepare the Trial Balance as at January 31, 2017.
Task 3: On a Stock/Store Ledger, determine the value of the closing stock using the:
LIFO method of stock valuation for the computer Store
FIFO method of stock valuation for the Clothing Store.
AVCO method of stock valuation for the Small Appliances and Household Items Store.
Task 4: Prepare the Financial Statements for the period ending January 31, 2017.
On February 5, 2017: the (business name) received the following bank statement from its bank, National Commercial Bank (NCB). After examining the bank statement below, you observed that the cheques used to pay for machinery purchased on January 1, 2017 and the one sent to J & J Manufacturers Limited were not included. The cheques collected from P. Jackson and A. Holness were not deposited until February 1, 2017.
|
|
National Commercial Bank
|
|
|
Date
|
Particulars
|
Withdrawals
|
Deposits
|
Balance
|
|
Jan 1
|
Balance b/f
|
|
|
234,000
|
|
Jan 1
|
Cheque (M. Jackson)
|
|
20,000
|
254,000
|
|
Jan 2
|
Standing Order (Insurance Expense)
|
6,400
|
|
247,600
|
|
Jan 2
|
Cheque
|
93,000
|
|
154,600
|
|
Jan 8
|
Rent
|
40,000
|
|
114,600
|
|
Jan 8
|
Wages
|
42,000
|
|
72,600
|
|
Jan 11
|
Telephone expense
|
9,100
|
|
63,500
|
|
Jan 11
|
Electricity
|
12,300
|
|
51,200
|
|
Jan 11
|
General expenses
|
2,600
|
|
48,600
|
|
Jan 19
|
Cheque
|
15,600
|
|
33,000
|
|
Jan 22
|
Wages
|
10,000
|
|
23,000
|
|
Jan 24
|
Credit Transfer (J & J Manufacturers Ltd)
|
32,000
|
|
(9,000)
|
|
Jan 29
|
Standing Order
|
15,000
|
|
(24,000)
|
|
Jan 31
|
Bank charges
|
650
|
|
(24,650)
|
Task 5: (1) Update the Cashbook for January 2017 and balance it off.
(2) Draw up a Bank Reconciliation Statement as at January 31, 2017; reconciling the corrected cash book balance with the bank statement
Period Two: Task 6: Enter the above transactions in the appropriate subsidiary book/book of original entry and then post the transactions to the relevant ledgers. Ensure that you use all the relevant books. The opening entries should be shown in the General Journal for the period.
Task 7: Extract a trial balance as at February 28, 2017.
Task 8: Prepare the Financial Statements for the period ending February 28, 2017. The following additional information must be considered when preparing the financial statements:
1. Closing Stock as per the stock valuation method used as per Task 3 above.
2. Depreciate non-current assets as follows:
a. Fixtures & fittings - 15% on the straight line basis.
b. Delivery van - 20% on the reducing balance basis
c. Machinery - 20% on the reducing balance basis.
d. Computer desk - 25% on the straight-line basis.
e. Land is not depreciated.
3. The following expenses were outstanding at the end of February 2017:
a. Water rates $3,500
b. Telephone $1,750
c. Electricity $2,590
4. The following expenses were paid in advance:
a. Machine Maintenance $1,500
b. Cleaning expense $500
5. $1,800 of the amount owed by M. Jackson is to be written off as bad debt.
Task 9: Calculate a minimum of five accounting ratios for BOTH periods. Use ratios to:
a. comment on the performance of the business
b. make comparisons - the use of tables, charts or graphs must be used to illustrate the comparisons. you are expected to compare the first period with the second period or beginning balances with ending balances,
c. make a least three (3) suggestions and recommendations.
Information related to above question is enclosed below:
Attachment:- Group_Project.rar