Frank Crosby (who has not owned or perhaps run a business before) began a grass mowing business (Crosby's Cutters) as a short-term job/business which usually he designed to run right up until he started his business degree at the University of Woop Woop in Term 2, 2014. To start the business on 1 April 2014, he transferred $1, 000 into a new bank account opened in the name of the company. The $1, 000 contained a $600 loan from his father and $400 of his own money. Outspoken rented some equipment, bought supplies, and hired friends to mow and reduce his user's lawns.
Towards the end of each month Frank directed invoices to his customers. On 23 July, having been ready to break down the business and commence his university or college studies. As he was thus busy, he kept few records aside from his check book and a list of quantities owed to him simply by customers. In 31 September, Frank's organization account cheque book reveals a balance of $690, fantastic customers even now owe him $500. Throughout the period, this individual collected $4, 250 by customers. His cheque book lists obligations for items totalling $400, and he still has gasoline and supplies that cost you a total of $50 on hand. He paid his personnel $1, 900, and he still owes them $200 for their last week of.
Frank leased some equipment from Scholes Machine Shop. On one particular April, this individual signed a sixmonth rental agreement upon lawnmowers and paid $600 for the complete period. Scholes will refund the untouched portion of the prepayment if the equipment is in good purchase when he earnings it. To get the reimbursement, Frank features kept the device in exceptional condition. In reality during Might, he paid $300 to fix one of the mowers.
To transport staff and tools to jobs, Frank employed a truck that he bought to get $300. He believes the fact that period's job used up one-third of the trailer's service potential. The business talon book lists a payment of $460 for private cash withdrawals by Honest during the period. In This summer Frank reimbursed the money his father experienced lent to him. Frank estimates that he spent approximately 75 hours focusing on the business during the period. He plans to recommence operations on a comparable basis during major fails in his university or college study and believes he may do better in later times as he now has an existing customer base to work from.
1 . Prepare the business Salary Statement for the period.
Prepare the classified "balance sheet" at the end with the period. (11 marks)
three or more.
Was Frank's venture powerful? Give the causes of your response. 150 вЂ“ 250 words and phrases only.
Total for Issue 1: twenty-five marks
1 . The owner of an enterprise reviews the Income Statement prepared by you and asks, " Why will you report a profit of only $30, 000 when funds collections of $100, 1000 were received and cash payments to get the period totaled only $50, 000 intended for expenses? вЂќ How might you respond to the owner's issue?
2 . Give two cases which support your solution to part 1 of this issue. (4 marks)
Total for Question two: 10 marks
Barry Cooper submits for you draft makes up the year finished 30 June 2014, and a Balance Sheet as too date. For the end with the financial season his scrivener resigned and he had completed the documents himself. He thinks that errors may have occurred and asks for your help. An examination of the accounting records reveals the following: A.
Rent thanks from clients of hundreds of dollars is not supplied in the accounts. A payment of $1, 300 achievable office furniture have been incorrectly debited to the manifold expenses bank account. The pieces of furniture had been bought on 30 June 2014. Commission due to sales associates for the month of June, $1, 400, continues to be overlooked.
Repairs to Barry's private car, $840, have already been debited for the vehicle expenses account.
A payment of $11, 000 on 1 July 2013 for additions to buildings has been debited to repairs and maintenance.
A fireplace insurance policy covering up buildings was taken...
Accounting 1 Session 1 Final Exam Assessment Practice True/False Indicate whether or not the sentence or statement applies or phony. ____ ____ ____ ____ ____ ____ ____…...
1 ) В TheВ workВ ofВ thisВ brilliantВ AfricanВ AmericanВ chemistВ changedВ theВ entireВ meatВ packingВ industry. В Ans. В ItВ isВ theВ workВ ofВ thisВ brilliantВ AfricanВ AmericanВ chemistВ В namedВ LloydВ AugustusВ HallВ thatВ В В В В В В В changedВ theВ entireВ meatВ packingВ industry. В В В В В В В В В LloydВ AugustusВ HallВ wasВ bornВ inВ Elgin, В IllinoisВ onВ JuneВ 20, В 1894. В HeВ wasВ anВ AfricanВ AmericanВ chemistВ firstВ knownВ forВ hisВ workВ inВ foodВ chemistry. В BothВ ofВ hisВ parents, В AugustusВ andВ IsabelВ wereВ graduateВ inВ highВ school. В HallВ movedВ toВ AuroraВ IllinoisВ andВ raisedВ thereВ byВ hisВ parents. В InВ 1912, В heВ graduatedВ fromВ EastВ SideВ HighВ schoolВ inВ Aurora, В whereВ heВ wasВ activeВ inВ extracurricularВ suchВ asВ debate, В track, В footballВ andВ baseball. В AfterВ graduatingВ highВ schoolВ heВ wentВ onВ NorthwesternВ UniversityВ toВ studyВ pharmaceuticalВ chemistry. В HeВ graduatedВ inВ 1916В withВ B'sВ degreeВ andВ masterВ atВ theВ UniversityВ ofВ Chicago. В HeВ alsoВ facedВ prejudiceВ whenВ heВ wasВ hiredВ В byВ theВ WesternВ ElectricВ Company. В Then, В В 3В yearsВ laterВ heВ wentВ onВ toВ beВ chiefВ atВ theВ JohnВ В MorrellВ…...
п»їChapter two Recording Business Transactions в€љQuick Check Answers: 1 . a 3.…...
Queen. 33. What are the advantages of International trade? Also discuss its down sides. ADVANTAGES OF FOREIGN TRADE Several advantages are named to get the countries entering into operate…...