Prepare a profit and loss statement and balance sheet

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Reference no: EM132229275

ASSESSMENT TASK 1: PRACTICAL APPLICATION (PROFIT AND LOSS STATEMENT AND BALANCE SHEET)

1. Prepare a Profit & Loss Statement and Balance Sheet using the information given below.

2. Explain how the business is affected by the completed Profit and Loss Report.

From the following financial Information Prepare a Profit & Loss Statement and Balance Sheet;

 

Food Sales                             

 

$25 000

 

 

Beverage Sales

 

 

$42 000

 

Rooms Sales                         

 

$33 000

 

 

Conference Sales

 

 

$45 000

 

Opening Food Stock  

 

 

$10 000

 

Food Purchase

 

 

$20 000

 

Closing Food Stock               

 

 

$20 000

 

Opening Beverage                 

 

 

$25 000

 

 

 

Beverage Purchase               

 

$40 000

 

 

Closing Beverage Stock        

 

 

$25 000

 

Advertising                             

 

$1 200

 

 

Rates (Council Fees for emptying Rubbish Bins, Landscaping and Street Cleaning)                                

 

$1 500

 

Decorations (Christmas Trees or Flowers for Table Centre Pieces)                        

 

$700

 

 

Repairs & Maintenance         

 

 

$2 300

 

Laundry                                  

 

 

$2 900

 

Office Supplies (Pens, Stationary)

 

$2 500

 

 

Insurance                               

 

 

$1 500

 

Wages            

 

 

$58 000

 

 

Cash in Bank                         

 

 

$48 866

 

 

Retained Earnings for Previous Year            

 

-$41 790

 

Linen & Glassware                 

 

$510

 

 

Liquor                                     

 

$2 558

 

 

Food                           

 

$4 996

 

 

Equipment                              

 

$5 200

 

 

Accounts Payable                  

 

$10 000

 

 

Capital                        

 

$70 000

 

 

Accounts Receivable (A/R)                           

 

$480

 

Verified Expert

A quick assignment which deals with providing a base knowledge about the financial accounting and its concepts,it requires intermediate skills to complete the whole assignment.It deals with making a profit and loss along with balance sheet.

Reference no: EM132229275

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