Prepare closing journal entries after balances

Assignment Help Financial Accounting

Reference no: EM133013008

Accounting and Finance for Managers Assignment

Assignment One on General Overview of Accounting

Part I. Essay Writing Questions

1. Write suitable discussion related to (i) the definitions of accounting and the forms of the accounting as a discipline and (ii) the similarities and differences of Financial Accounting and Management Accounting.

2. Discuss the current accounting standards or principles applicable in Ethiopia as a base for financial statement preparation and presentation.

3. Explain the underlying prescriptions of IFRS

4. Describe five types of business transactions with external parties and another five types of business transactions from internal sources of a selected form of business company at your nearby (please indicate the form of company you selected on the answer sheet) and explain how they are journalized and then reported in the financial statements.

5. Discuss the accounting process as a cycle with a given period by explaining each of the steps and by giving practical examples.

6. Discuss the components in detail of the following financial statements for a manufacturing PLC:
a. Statement of Profit or Loss (Income Statement)
b. Statement of Financial Position (Balance Sheet)
c. Statement of Changes in Owners' Equity
d. Statement of Cash Flows

7. Explain cost accounting and its functions as well the distinguishing features of cost accounting systems for (a) job order costing, and (b) process costing

8. a. Give suitable explanation on (i) Cost; (ii) Cost Objects; (iii) Cost Driver
b. Discuss the different forms of Cost Classification

9. Discuss (i). the notions and purposes of CVP Analysis, and
(iii) the Components of CVP Analysis (Break-Even Analysis, Target Analysis, Margin of Safety Analysis, Sales-mix Analysis and others)

10. Discuss what forms of relevant information are applicable for business decisions related to Make or Buy Decisions, Accept or Reject Special Orders; Continue or Discontinue Business, and Sell or Process Further, and others

Part II. Work-out Questions

Question 1
Some selected balances of DD Co. for year ended Dec-31-2019 are as follows with their normal balances before adjustments:

Cash and Cash Equivalent Br 20,000 Owners' Capital 40,000

Notes Receivables	45,000	Retained Earnings	75,000
Office Supplies	12,000	Sales Revenues	640,000
Prepaid Insurance	72,000	Interest Income	12,000
Inventory (Average Cost)	24,000	Cost of Goods Sold	320,000
Fixed Assets	120,000	Selling Expenses	21,000
Accum. Depr- Fixed assets	36,000	Salary and Wages Expense	105,000
Unearned Rent (Liability)	56,000	Rent Expense	15,000

Required
a. Prepare the necessary adjusting entries for the following items as not yet recorded on Dec-31-2019:
i. The office supplies consumed during the year is Br 8,000
ii. The Unexpired part of insurance is only Br 26,000
iii. Br 30,000 is earned sales revenues from the unearned advance collection
iv. Salary and wages accrued as on 31-Dec-2019 amounts to be Br 18,000
v. Depreciation Expenses allocated for the year amounts to be Br 15,000
vi. There are accrued interest of Br 8,000 on the notes receivable
b. Prepare the following Financial Statements after adjustments on Dec-31- 2019.
i. Balance Sheet ii. Income Statement
c. Prepare closing journal entries after balances are adjusted and show the final closing of Income Summary to Retained Earnings

Reference no: EM133013008

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