Questions and Answers of Accounting for Business

Siamak's Shoe Repairs is run by Siamak Rubaiyat in the local shopping arcade. The business prepared the following unadjusted and adjusted trial balances at 30 June 2025.Required Prepare the adjusting
The trial balance of Chelsea Elliott, marketing services provider, at 30 June 2025 was as follows (ignore GST).Required (a) Using the following information, prepare adjusting entries. Use the
Water Sports Hire runs a business on the Murray River hiring out water sports equipment to holiday makers, tour operators and for corporate training sessions. The unadjusted trial balance of Water
Hannah's Home Decorators' adjusted trial balance columns of a worksheet are shown below.Required(a) Complete the worksheet and prepare and income statement, a statement of changes in equity and a
Tully Taylor established Tully’s Phone App Productions in 2024 and kept her accounting records on a cash basis. During 2026, Tully decided to switch her accounting to the accrual basis and has
The accounting records and other data for Prime Premises Painters was analysed. The following information is available for the year ended 30 June 2025.1. Salaries and wages owing to employees at the
The unadjusted trial balance of the general ledger of Antonio’s Small Appliance Repair Service on 30 June 2025 is presented below (ignore GST).Additional data for adjustment purposes 1. Supplies on
Trang Nguyen operates a roofing business that specialises in replacing broken tiles and cleaning and repairing roofs and gutters. He began business in April 2025 but has not yet established a formal
The unadjusted trial balance of Tenterfield Tree Specialist, which keeps trees healthy or remove them if they cannot be saved, appears as shown below. Ignore GST.Additional information 1. Expired
The unadjusted trial balance of Helena’s Hire Cars is shown below (ignore GST).Additional information 1. Petrol purchased on credit for $680 and used during the last week in June has not been paid
David Johnson has decided that a company is the best business structure for him and on 15 July Electronic Thingz Pty Ltd was incorporated as a private company with David as the sole
Identifying account categories The following is a list of ledger account titles extracted from the general ledger of A. Sullivan, marketing consultantRequired (a) Identify each of the ledger accounts
For each of the following transactions, indicate whether the accounts affected are an asset, a liability, an equity, an income or an expense. Also indicate whether the accounts are being increased or
The following transactions were undertaken by Huntington Services during the month of March 2025. Ignore GST.1. Invoiced a client for providing advice on current employment legislation, $1800.2. Paid
Fanatic Fone Fixers’ chart of accounts contained the following accounts: Cash at bank; Accounts receivable; Equipment; Accounts payable; T. Hudson, drawings; Service fees; Salaries expense; and
The general journal of Lenore Grunweld, Property Adviser, contained the entries below for the month of July 2025. GST is ignored.Required (a) Post the transactions to T accounts. The chart of
The following accounts appear in the ledger of Nick's Natty Nails, a nail salon: Cash at bank; Accounts receivable; Salon equipment; Accounts payable; N. Kutikal, drawings; Salon revenue; Salaries
The following information relates to the business of Man Ting’s Travel Agency for the month of June 2025:Required (a) Prepare general journal entries to record the above events, as appropriate, in
In December 2025, the following transactions occurred in Macchiato’s Coffee Roasters business that supplies cafés and also sells direct to the public:Required (a) Prepare general journal entries
Katrina's Computer Tech Services T accounts for 30 September 2026 were as follows.Required Analyse the above accounts and describe in chronological order the transactions that have been recorded.
When processing the accounts for Peter’s Plumbing Contractors, the following errors were made.1. Plumbing equipment purchased for $$5600$ cash was debited to Equipment and credited to Accounts
Nigel’s Gardening Services trial balance presented below does not balance. In examining the general journal and the general ledger you discover the following information. Ignore GST.1. The balance
1. For each of the following errors:(a) indicate whether the error would cause the trial balance to have unequal totals(b) determine the amount by which the trial balance totals would differ(c)
Identifying type of account, debit/credit analysis and normal balance Logan Party Hut’s ledger accounts are listed below:Required (a) For each account listed above, complete a solution form as
On 1 July 2024 Tanya Arthur opened a hairdressing salon. The following transactions occurred during the first month of operations (ignore GST).Use the following account titles and numbers: Cash at
On 1 July 2024 Tanya Arthur opened a hairdressing salon. The following transactions occurred during the first month of operations:Use the following account titles and numbers: Cash at Bank, 100;
Rearranging Dirt Diggers provides earth moving services with large tractors. In August the following transactions were undertaken by Rearranging Dirt Diggers. Ignore GST.Required (a) Record all
The Arid Sands Golf Club was opened for business on 1 July by Todd Simpson. The following selected events and transactions occurred during the first month of operations.Required Prepare general
The 31 May 2026 trial balance of Jason Williams, Physiotherapist, is shown below.The following transactions were completed during June. All amounts are exclusive of 10% GST where applicable.Required
The following transactions occurred for Shekh's Automobile Painting Service during April and May 2025.Required (a) Assuming that the accounting period is a calendar year, prepare general journal
On 1 October 2024, James Taylor decided to open Taylor’s Tailormade that makes suits, trousers and jackets and repairs and alters clothes. He contributed for this purpose sewing equipment
Lewis Edwards decides to branch out on his own and set up his own private practice as an accountant. Events occurring in April 2024 are as follows. Ignore GST.Required (a) After analysing the events
Sisi's Spa Retreat began operations on 1 April 2024. Sisi Liu contributed the capital of the business of $1 500 000 cash. She has asked you to be record keeper for the business on a part‐time
Penelope’s Personal Training Service had been in business for several years. In June 2025, as a result of a dispute with the owner, the accountant of the business disappeared and took all the
In December 2024, Millie Matthews opened a miniature golf course to cater for the summer holiday tourists and completed the transactions below during its first month of operations. For the sake of
In April 2025, Naomi Duncan opened a car hire business. The following transactions occurred during the first month of the business (ignore GST).Use the following account titles and numbers.Required
It is the end of the month and even though David has not been in business very long he is anxious to see how the business is doing. He hopes he has made profit because he needs to be able to make a
David (the shareholder/director) really does not understand much about accounting so he assumed that all expenses should be accounted for as an expense when paid, and therefore he could not
Financial items for George Karatsis IT Services on 31 May 2024 are presented below in alphabetical order.Required (a) Prepare a statement of financial position similar to the one in figure 2.2.(b)
During the year ended 30 June 2024, Skilled Services, a provider of temporary secretary personnel, had collected receipts from clients for a total value of $$250000.$ Wages of $$136000$ had been
Rebecca Tallance operates a rent a dress business from her home. She keeps her accounting records for business activities completely separate from her records for personal activities. At 30 June
Equity balances for Sen Widyaya appearing in the statement of financial positions of Widyaya’s Window Washing Services as at 30 June 2024, 2023 and 2022 are set out below.During 2022–2023, Sen
A friend who has established a new Pilates studio, Core Strength, has asked you to give some advice as to the contents of financial statements. Transactions of Core Strength include:(a) contribution
Month-end statement of financial position amounts for the practice of David Wei, an immigration lawyer, for 3 consecutive years are shown below. The information is complete except for the balance in
The following schedule shows the effect of several transactions on the accounting equation of Photomania, a photography business, and the balance of each item in the equation after each transaction.
Trans Phone Repairs began operations on 1 December 2024 and completed the following transactions during the first month.1. Jeremy Tran deposited $$15$ 000 of his personal funds in a current
Scott and Tara Millens are the joint owners of Snowy Ski Lodge, which is located in the Victorian Alps. The lodge provides accommodation, ski hire and meals. For the year ended 30 June 2024, Scott
The following events occurred during the month of September 2024 for the business of Shruti’s Webdesign Service.Required (a) Determine the effects of business transactions on a statement of
Ram Sridar began a food truck business on 1 July 2022 by depositing $35 000 into a business bank account. On 30 June for the next 3 years, the assets and liabilities of the business were as
Financial data for Safety Hire as of 30 June 2024 are:Required (a) Prepare a statement of financial performance for the month of June and a statement of financial position in account format for
Asset, liability, equity, income and expense amounts for Tizannia’s Property Styling at 30 June 2024 are presented below:Required (a) Prepare a statement of financial performance for the business
During October 2024, Cleo launched a business, Cleo’s Coffee, operating from a repurposed shipping container. After each October transaction, Cleo prepared a statement of financial position, as
Dawson Industries began operations early in January 2024. On 31 December 2024, records showed the following asset, liability, equity, income and expense amounts:Required (a) Prepare a statement of
A new business graduate with one subject of accounting prepared the financial statements below for Amir’s Delivery Service at the end of the first year of operations.Additional analysis revealed
Tiffany established The Marketing Store, an Instagram management business on 1 January 2024 as a sole trader business. She contributed $10 000 in cash to the business and did not withdraw funds for
Financial balances for the car hire business of Terry's Wedding Cars on 31 March 2024 are provided below in a table in accounting equation form similar to the chapter illustrations.During April, the
Eliza Perry obtained registration to practice as an aesthetic nurse, and spent the month of July 2024 setting up her business — E. Perry, Naturals.Eliza prepared a new statement of financial
Tran’s Clothing Alterations began operations on 1 August 2024 and completed the following transactions during the first month.1. Tran deposited $$18$ 000 of her personal funds in a current
Finesse Fitness was established on 1 April 2024 with an initial investment of $60000 by the owner, Daniel Hewitt. During the first few months of business, the owner employed a student studying
Jason Vu offers tutoring services to first-year university students. He has set up a sole proprietorship business named JV Tutoring. Jason has collected the following information relating to his
Yamindi was raised on a farm in the Northern Territory and loves animals. When he finished secondary school, Yamindi had nearly $$5000$ in a savings account. He used his savings to start a business
You are setting up a chatbot agency to service marketing, sales and customer services teams. Discuss the advantages and disadvantages of setting up the business as a sole trader or company and the
Principles for Responsible Management Education (PRME) is a ‘not-for-profit’ entity. It engages business schools to ensure they provide future leaders with the skills needed to balance economic
Entities are expected to perform in environmental, governance and social areas as well as profit (unless a not-for-profit entity). List some key performance indicators applicable to each sphere.
Today's world is data driven with businesses having a deluge of available information available for decision making. Data needs to be given the appropriate place in a company’s strategy, but
Discuss why the cash received from providing a service is revenue, yet the cash contributed by the owner is not revenue.
Discuss whether an asset needs to be legally owned to be recorded as an asset on the statement of financial position.
A local football club has won the premiership for the past four years. Accordingly, the club has a very strong supporter base. Rationalise if the players would be regarded as an asset of the business
As the accountant at a State Government, explain to the Chief Executive Officer if the air rights above train stations is an asset that should be recorded on the Council’s statement of financial
Moonshine Enterprises hired an accountant at the rate of $5000 per week. The person is to commence duty on 3 January. Explain if the business has a liability in respect of the accountant’s salary
Discuss the significance of the following assumptions in the preparation of an entity’s financial statements:(a) Entity assumption(b) Accrual basis assumption(c) Going concern assumption(d)
Your neighbour knows that you are studying accounting. She has recently received the annual report for a company in which she is a shareholder. The financial report within the annual report is
‘Faithful representation’ is a fundamental characteristic of financial information. This term replaced ‘reliable’ in the Conceptual Framework. Discuss the rationale for this change.
Social enterprise data made available in 2016 found that in all industry areas there were at least 20,000 operating social enterprises. The social enterprise sector today continues to expand with
You are considering buying an apartment. Outline the information you would like to assist you to make this decision. Identify how much of this information is financial information?
Describe the differences between financial information and non-financial information.
Describe the characteristics of a general purpose financial statement.
'Cloud accounting is good for business'. Describe cloud accounting and why it is good for business..
List some emerging technologies that are currently influencing the accounting industry.
Discuss the concept of assurance.
Discuss the skills and competencies that accountants possess to assist business to become more sustainable.
Discuss what it means to behave ethically.
George Zac is a customer services officer for the local community bank. One day, a person walks into the bank looking for a loan to buy a new car. List six items about that individual that George
Li Nguyen’s family lives in Guangzhou, China. She has been accepted into a university course in Melbourne and has to find accommodation in the city within walking distance of the university, or at
Georgia Martin has decided to study medicine at a university in Adelaide. She has arranged to stay with a family on the north side of the city. In order to get to and from the university, she decides
Accounting provides much information to help managers make economic, environmental, social and governance decisions in their various workplaces.RequiredList examples of economic, environmental,
Carla and Sean Beach have decided to lease some newly built premises for the purpose of opening an ice-creamery.Discuss financial information that they will need to assist them to make economic
Becoming an accountant Referring to the membership areas of CPA Australia and CAANZ, answer the following questions.Required(a) Compare the entry requirements to become a full member of CPA Australia
Read the following prefix to Google's code of conduct and discuss the points that follow.Alphabet Investor Relations: Google code of conduct The Google Code of Conduct is one of the ways we put
David Johnson has decided to start a business and is a new client of your small public accounting practice called Trent Accounting Services. He has come to seek your advice about what form of
In addition to advice about which business structure David should use, he has asked for advice on how to go about setting up the business. David would like to understand any legal requirements for
Look up the answer to End-of-chapter questions 3.5. Using the statement of profit or loss and the statement of financial position, present the statement of cash flows for Laura for the year ended 31
From the financial press or internet, track the share price of the three companies given above for one week and calculate the average share price for each company. Using your average share price, the
Using the ratios you have calculated in Question 6.3 for the three companies:• Suggest reasons for the changes in profitability over the two years for all three companies.• Evaluate the
Plants Limited is looking to expand its operations in the year to 31 October 2020, but needs to raise additional finance to do so. The company proposes raising £500,000 by issuing 200,000 ordinary
A colleague who has just started studying accounting has read in another book that companies without current ratios of 2:1 and quick (acid test) ratios of 1:1 will find it difficult to meet their
Metal Bashers Limited produces steel fabrications for the construction industry. Steel girders and supports are cut to size and welded in the welding department and then painted in the paint shop
Diddle Limited produces ornamental statues for gardens whose selling price, costs and contribution per unit are as follows:The same specialized clay is used in all three statues and costs £6 per kg.
Define the following terms(a) Contribution(b) Relevant costs(c) Irrelevant costs(d) Sunk costs(e) Opportunity cost(f) Break-even point(g) Margin of safety(h) Target profit
Podcaster University Press is a small publishing company producing a range of introductory textbooks on a variety of academic subjects for first year undergraduate students. The company’s marketing

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