Accounting Context and Method Assignment
You are required to:
1. Record accurately all transactions for the month of June and the end of the accounting period in the correct journals. You will need to complete the Inventory Subsidiary Ledger cards for the two items of inventory as you go so that you can calculate the Cost of Goods Sold for each lot of sales.(Topic 5 and Topic 7)
2. Complete adjusting entries at the end of the period, but not closing entries at this stage. (Topic 3 and 9 for depreciation methods.)
3. Complete a bank reconciliation process before totalling the cash journals. (Topic 8 - there was a "how to do a bank reconciliation" handout.)
4. Post the journals to the general ledger at the end of the month (and post to the subsidiary ledger daily). The ledger accounts have been created for you but you will firstly need to enter the opening balances in each account on 1st June. NOTE: the income and expense accounts will have an opening balance at this point as they are only closed off using closing entries at the end of the financial year. You should get these from the Trial Balance and Schedules above. (Topic 5 - there was a "how to post" special journals handout.)
5. Complete Schedules of Accounts Receivable, Accounts Payable and Inventory and reconcile these with the relevant control accounts. (Topic 5 and 7)
6. Complete the adjusted Trial Balance (do this BEFORE completing and posting closing entries).
7. Complete closing entries necessary at the end of the accounting period and post them to the Ledger. Balance the Balance Sheet accounts. (Topic 4)
8. Complete an internal Income Statement and Balance Sheet. You should put aggregated amounts and a "Note" for the following items:
- Sales and Sales Returns
- Cost of Sales
- Depreciation Expense (add the two together)
- Accounts Receivable and Allowance for Doubtful Debts
- Fixed assets and their respective accumulated depreciation
- W Wild, Capital (incorporate drawings and profit in the note)
(See Topic 4 and Topic 7 for examples. Topic 7 is particularly relevant as this is a wholesale business selling inventory.)
Attached excel template should be used.
Attachment:- Assignment Files.rar