Reference no: EM132229886
Accounting for Decisions Assignment - End of Period Adjustments and Closings and Financial Statements
The unadjusted trial balance of Helena's Hire Cars is shown below:
|
HELENA'S HIRE CARS Unadjusted Trial Balance as at 30 June 2016
|
|
Account
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Debit
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Credit
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|
Cash at bank
|
$8140
|
|
|
Accounts receivable
|
12860
|
|
|
GST receivable
|
1500
|
|
|
Office supplies
|
640
|
|
|
Hire cars
|
93600
|
|
|
Accumulated depreciation - hire cars
|
|
$39400
|
|
Office equipment
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6200
|
|
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Accumulated depreciation - office
|
|
3500
|
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Equipment
|
|
10800
|
|
Accounts payable
|
|
2260
|
|
Unearned hire fees
|
|
3240
|
|
GST payable
|
|
66600
|
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H. Savva, Capital
|
20600
|
|
|
H. Savva, Drawings
|
|
98700
|
|
Hire fees revenue
|
8180
|
|
|
Insurance expense
|
50620
|
|
|
Wages expense
|
3880
|
|
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Advertising expense
|
7600
|
|
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Maintenance expense
|
10
|
|
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Fuel and oil expense
|
680
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|
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$224500
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$224500
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Additional information
(a) Petrol purchased on credit for $680 plus GST of 10% and used during the last week in June has not been paid for or recorded.
(b) A physical count showed office supplies totalling $340 were still on hand at 30 June.
(c) Depreciation for 1 year on the hire cars is $12 400. Depreciation on the office equipment is $980.
(d) The balance in the Advertising Expense account includes $600 prepayment (net of GST) for an advertising campaign beginning in July.
(e) The balance in the Unearned Hire Fees account includes $1800 received in May for hire services completed in June.
(f) The June insurance premium of $700 plus GST is overdue and has not been recorded. A tax invoice has not been received.
(g) Wages earned but not paid amounted to $1150.
Required:
1. Prepare the adjusting entries and adjusted trial balance for the year ended 30 June 2016. Use the column worksheet being provided.
2. Prepare the income statement, the statement of changes in owner's equity and balance sheet for the year ended 30 June 2016. Use the templates provided.
3. Examine the results and prepare a report of no more than 600-800 words on any business problems that the financial statements revealed as at 30 June 2016. Use appropriate ratio analysis to support your arguments.
4. Minutes of meetings attended by group members must be kept and detail attendance, work allocations, problems and resolutions to problems (Use template being provided). They must also note when the next meeting is to be held.
Attachment:- Assignment File.rar