INSTRUCTIONS

Part Requirements:

Stage 1

Use the spreadsheet template provided to complete the following requirements.

When using the spreadsheet you are required to provide the links from the General Ledger Accounts to the Live Trial Balance.

1. Link the balances of the General Ledgers to the Live Trial Balance

2. Enter the transactions into the appropriate Special Journals.

3. Important: After each transaction that particular journal should be in balance. If it is not, fix it before recording the next transaction.

4. Do the Bank Reconciliation and enter transactions as required.

5. Post (Link) the transactions from the Special Journals to the appropriate General Ledger Accounts the balances of which should flow to the Live Trial Balance.

6. Important: Posting should be done from the total of each column unless recorded in "Other Account" column.

7. Important: Post the entire journal and check that the Live Trial Balance is in balance before moving to the other journals. If it is not in balance, fix it before moving on.

8. Copy the Live Trial Balance and create a Fixed Trial Balance using Special Paste Values into your worksheet.

9. Do the adjustments into and complete the worksheet

- Note well: the worksheet is a separate document. No linking is permitted from the worksheet to any of the financial statements. It is used as a checking mechanism that ensures your financial statements prepared in step 13 match the worksheet.

10. Journalise the adjustments in the General Journal and post to the General Ledgers. Check that the Live Trial Balance is in Balance  before moving to the next transaction. If it is not in balance, fix it before moving on.

11. After all adjustments have been posted the Live trial Balance should be the same as the adjusted trial balance of the worksheet.

12. Copy the Live Trial Balance worksheet and create a Fixed Trial Balance worksheet using Special Paste Values into the worksheet.

13. Use the Fixed Trial balance to help you complete a Profit & Loss statement, Statement of Partners Equity and a Balance Sheet for month of trading.

Stage 2

Write a brief report to Julie and Katy commenting on the financial performance of the business:

- Calculate the following financial ratios and provide comments -

o Current ratio
 Industry average is 5:1
 Accounting Norm is 3:1
o Quick ratio
 Industry average is 4 : 1
 Accounting Norm is 1:1

- Calculate and provide a cash flow statement for the first month of trading.
- Using academic references (recorded using Harvard Referencing style) list and briefly explain the registrations and legal requirements that Julie and Katy would have undertaken to establish the business name and partnership.

Adjustments

1. Half of the General Café supplies have been used calculate and record the expense

2. Calculate the outstanding payroll liability

3. Calculate and record the insurance expense

4. Calculate and record the Telephone expense

5. Calculate and record the prepaid rent

6. Calculate and record the depreciation expense for the month

7. A stocktake of the products revealed that there were:
- 6 Highland
- 7 Lowland
- 16 Tea

Attachment:- Requirements ATMC.rar