Reference no: EM132370652

Accounting for Decisions Assignment - Financial Statements Case Study

Part 1 - Compare and contrast the purposes of adjusting entries, closing entries and reversing entries.

Part 2 - End of Period Adjustments and Closings and Financial Statements

The unadjusted trial balance of Jammie's Financial Consultant, contains the following account balances as at 30 June 2018:

JAMMIE'S FINACIAL CONSULTAT Unadjusted Trial Balance, as at 30 June 2018
Account	Debit	Credit
Cash at Bank	$5,200
Accounts Receivable	9,260
GST Receivable	920
Office Supplies	1,140
Land	60,000
Building	152,000
Accumulated Depreciation - Building		$64,000
Office Equipment	23,400
Accumulated Depreciation - Office Equipment		6,420
Accounts Payable		7,960
Unearned Consulting Fees		1,560
GST Payable		2,000
Mortgage Payable		88,600
C. Delaney, Capital		71,490
C. Delaney, Drawings	52,780
Consulting Fees Revenue		156,860
Insurance Expense	1,660
Salaries Expense	87,940
Electricity Expense	760
Interest Expense	2,090
Telecommunications Expense	1,740
Total	$398,890	$398,890

The following additional account titles are included in the chart of accounts:

Prepaid Insurance

Telecommunications Expense Payable

Office Supplies Expense

Depreciation Expense - Buildings

Depreciation Expense - Office Equipment

Interest Payable

Salaries Payable

The following information is also available:

1. A physical count of office supplies reveals that supplies totalling $420 are on hand at 30 June.

2. The balance in the Unearned Consulting Fees account includes $1200 earned for services rendered in the last week of June.

3. Estimated depreciation on the office equipment is $2140. Depreciation on the building is $8760.

4. A 12-month insurance policy was purchased on 1 April for $780 plus GST.

5. The June monthly mortgage payment of $900 has not been paid or recorded. In each payment, $220 is attributable to interest.

6. The June telecommunications costs for $320 are unrecorded. No tax invoice has been received.

7. Salaries of $980 were owing to employees at 30 June 2018.

Required:

1. Prepare a 6-column worksheet for the year ended 30 June 2018. Use the same format of the column worksheet provided.

2. Prepare the income statement, balance sheet (Narrative Format) and statement of changes in equity.

3. Minutes of meetings attended by group members must be kept and detail attendance, work allocations, problems and resolutions to problems (Use template being provided).

Note - Students will be required to form groups and will be given a case study comprising a trial balance and set of scenarios. Students will be required to analyse the transactions and calculate and post the closing adjustments. Necessary to create a final set of financial statements.

Attachment:- Accounting for Decisions Assignment File.rar