Prepare the classified income statement and balance sheet

Assignment Help Finance Basics
Reference no: EM132071717

QUESTION 1

Grace Park has recently graduated with a Masters of Health and Human Services and has decided to set up her own business as a health policy and research consultant. From her past medical experience Grace is confident she can succeed with her business Park Health. Grace has provided the transactions for Park Health for the first quarter ending 3oth June 2018.

a) You are required to record the following transactions into the transaction analysis chart (template provided).

April

1 Invested $160,000 of her own funds into a business bank account.

2 Purchased a self-contained office space in Richmond for $360,000. Grace paid a 10% deposit and the balance was financed through a mortgage with Gotcha Banking Corporation.

3 Grace purchased office equipment $18,000 cash.
A six-month subscription for access to professional medical journals was purchased for $3,600 cash.

4 Office furniture was purchased for $3,000 cash.
Paid $2,400 for professional indemnity insurance for 12 months. Office stationery was purchased for $860 on 30 day credit terms.

5 Grace acquired a motor vehicle for $30,000 on 120 days credit terms. No payments are required until July 2018.

12 Grace invoiced her first client, Carringvale Private Hospital, $2,000 for a day's consulting.

13 Grace contributed her own laptop computer valued at $4,500, to the business.

16 Invoiced clients $3,500 for consulting services performed.

17 Received full payment from her first client.

18 Hired a research assistant on a casual contract basis.

30 Paid a mortgage repayment of $2,800, of which $1,200 is interest and $1,600 is principal.

May

1. Invoiced clients $9,800 for consultation and research. Grace withdrew $2,400 for personal use.

10 Paid wages to her research assistant totaling $1,200, $300 of which was deducted for PAYG tax which will be remitted to the Australian Taxation Office at a later date.

24 Received $5,800 from credit customers.

26 Paid telephone and internet for bill for April of $320.

27 Big Pharma Ltd, have agreed to retain Grace's services as a lobbyist and research consultant in the future at a rate of $2,200 per day.

30 Paid a mortgage repayment of $2,800, of which $1,200 is interest and $1,600 is principal.

June

2 Invoiced a range of health providers for work performed $9,200

9 Paid wages to assistant totaling $1,800, $500 of which was deducted for PAYG tax and will be remitted to the Australian Tax Office in the future.

16 Paid motor vehicle expenses for the quarter totaling $580. Received $8,400 from credit customers.

25 Grace withdrew $2,800 from the business, of which, $1,200 was for a one-off payment for professional accreditation to the Allied Health Association, the relevant professional body, and $1,600 for airfares to Hawaii for a holiday later in the year.
Made a part payment of $260 for the office stationery.

30 Paid a mortgage repayment of $2,800, of which $1,200 is interest and $1,600 is principal.

Additional information:

- Utilities owing at balance date are $680
- As at 30 June $500 of office supplies had been consumed.
- Motor vehicle is depreciated at 20% per annum straight line.
- Office and computer equipment is depreciated at 30% per annum reducing balance.
- Office furniture is depreciated at 10% per annum straight line.
- Assume a full quarter for depreciation and no residual value.
- Round up to nearest dollar.
- Ignore GST and income tax.

b) Prepare the fully classified Income Statement and Balance Sheet for the quarter ending 30 June 2018 for Park Health.

c) Park has concerns regarding the unlimited liability status of a sole trader and is considering setting up a proprietary limited company. She has read that shareholders enjoy limited liability and finds this attractive. Park will be the only shareholder and director of the company.

Are there any circumstances in which Park, as a director, could be personally liable for any debts of the company?

In your answer cite all relevant legislation, if any. (up to 750 words)

Attachment:- Assignment Proforma.rar

Reference no: EM132071717

Questions Cloud

Explain the appropriate research design : An introduction which encompasses the re-statement of the problem and the research questions. For a quantitative study the hypotheses as well.
What are the main points of the article : How are specific marketing concepts and approaches in the week's material applied to this articles situation?
Assessment title-network basics : This assignment assesses the basic concepts of networking; students should be able to demonstrate their achievements in the following unit learning outcomes:
How might you have helped the group work through stage : The team needs to have members who have complementary skills and who are committed to a common purpose to achieve performance goals.
Prepare the classified income statement and balance sheet : MPA702 Financial Interpretation - Deakin university - You are required to record the following transactions into the transaction analysis chart
Why do horrible events happen to good people : Upon hearing the stories of sometimes horrific atrocities clients or client families have experienced, you as a social worker may find yourself confronting.
What does hr want to become in the future : What does HR want to become in the future? What are 3 new goals for the HR department beyond what is provided in the case study?
Discuss product adaptation in terms of why to adapt : Products especially consumer goods, such as apparel, jewelry, or foods require product adaptation for entering a foreign market.
How technology impacts global business today : How technology impacts global business today? Discuss this issue with a specific case (in negative or positive aspect) from a global perspective.

Reviews

len2071717

7/31/2018 10:57:27 PM

C) (theory) (20 marks). Answer omitted or brief answer provided missing key points of any potential legal implications. (0-9.9 marks) Showed reasonable understanding of, and research into potential legal implications but did not address detailed criteria for determining a breach. (10-11.9 marks) Good discussion and research into the potential legal implications together with a reasonable but brief discussion of any relevant legislation if any. (12-13.9 marks) Very good discussion and research of potential legal implications together with a good discussion as to whether any relevant legislation. But lacking in appropriate sources to support discussion (14-15.9 marks) Demonstrated excellent understanding of the potential legal implications together with detailed discussion and research as to whether any relevant legislation, together with all appropriate sources to support discussion. (16-20 marks)

len2071717

7/31/2018 10:57:17 PM

Balance sheet (20 marks). Answer either omitted or attempted but needs work on classification and presentation. (0-9.9 marks) Most entries correct along with classification and report presentation. (10-11.9 marks) Fundamentally good report showing good understanding of classification and report presentation. (12-13.9 marks) Very well presented Balance Sheet. Very good classification and treatment of depreciation and balance day adjustments all included. (14-15.9 marks) Shows excellent command of Balance Sheet presentation and classification with all accounts included. (16-20 marks)

len2071717

7/31/2018 10:57:09 PM

B) Income statement (20 marks). Answer either omitted or attempted but needs work on classification and presentation. (0-9.9 marks) Most entries correct along with classification and report presentation. (10-11.9 marks) Fundamentally good report showing good understanding of classification and report presentation. (12-13.9 marks) Very well presented Income Statement. Very good classification and treatment of depreciation and balance day adjustments all included. (14-15.9 marks) Shows excellent command of Income Statement presentation and classification with all accounts included. (16-20 marks)

len2071717

7/31/2018 10:56:57 PM

Criteria Poor/ Needs improvement Acceptable Good Very good Excellent A) Transaction analysis (40 marks). Transactions either omitted or partially or incorrectly recorded. Needs work on treatment and understanding of depreciation and balance day adjustments. (0-19.9 marks) Transactions recorded correctly but lacked account names and further improvement of depreciation and treatment of balance day adjustments. (20-23.9 marks) Demonstrated good understanding of transaction analysis. Account names and correct increase/decrease correct. Some errors associated with depreciation calculations and treatment of balance day adjustments. Demonstrated very good understanding of transaction analysis and accounting equation with account names and most calculations and balance day adjustments correct. (28-31.9 marks) Demonstrated excellent understanding of transaction analysis and treatment of both depreciation and balance day adjustments. (32-40 marks) (24-27.9 marks)

len2071717

7/31/2018 10:56:35 PM

Submission Instructions 1. This assignment is to be submitted ONLINE ONLY (You are NOT required to submit a hard copy). 2. You must type in your answer for each question on the proforma provided. If not submitted on the proforma it will not be marked. 3. The c om p l et e d assignment question must be submitted into the allocated area on CloudDeakin under the Dropbox folder. 4. This is an individual submission and covers topics 1-4. 5. You are not required to upload an Assignment Cover Sheet. You will complete a Plagiarism declaration when you access the Dropbox. 6. Once submitted you cannot take your assignment back BUT you CAN SUBMIT another version. The most recent version submitted will be marked. 7. Please refer to the rubric for guidance on the marking structure.

len2071717

7/31/2018 10:56:27 PM

Unit Learning Outcome (ULO) Graduate Learning Outcome (GLO) ULO 1: Assess the financial standing of an entity by examining relevant financial information and identify how disclosure techniques can support business decisions. DGLO1 Discipline specific knowledge and capabilities ULO 2: Evaluate scenarios involving ethical decisions in financial accounting. DGLO1 Discipline specific knowledge and capabilities

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd