Question: Accounting in Context Week 8 Homework due Week 9 Tutorial Practical Question 1 Mowers R US Pty Ltd is a service based company. The account
Accounting in Context
Week 8 Homework due Week 9 Tutorial
Practical Question 1
Mowers R US Pty Ltd is a service based company. The account balances below are as at 30/6/2018.
Mowers R US Pty Ltd Account Balances
As at 30 June 2018
Account name
Balance $
Accounts payable
369,000
Accounts receivable
397,700
Accumulated depreciation equipment
319,000
Advertising expense
40,200
Share Capital 1/7/2017
700,000
Retained Earnings 1/7/2017
306,220
Dividends Paid
63,080
Bank Overdraft
10,080
Building
870,000
Cash at bank
75,540
Electricity expense
40,200
Equipment
720,000
Motor vehicle
21,000
Mortgage payable (due on 30 June 2021)
123,000
Prepaid insurance
10,200
Rent expense
39,360
Rent revenue
32,280
Repairs revenue
790,800
Telephone expense
61,500
Wages expense
311,600
Required:
Using the above account balance information, complete the financial statements in the templates provided.
a.Income Statement
Mowers R US Pty Ltd Income Statement
for the year ending 30 June 2018
b.Statement of Changes in Equity
Mowers R US Pty Ltd
Statement of Changes in Equity
for the year ending 30 June 2018
Practical Question 2
John Smith prepared the following list from the general ledger of H&M Supermarket, as at 30 June 2018.
Required:
- Indicate in the table below which element the items belong to (Current Asset, Non-Current Asset, Current Liability, Non-Current Liability, Owners' Equity, Revenue, Cost of Goods Sold (COGS), Marketing and Selling Expense (MSE), General and Administrative Expense (GAE), or Financial Expense (FE)
- Income Statement and Statement of Changes in Equity in the templates provided
Element
The account balances for H&M Supermarket at 30 June 2018
($)
Bank Overdraft
25,234
Accounts Receivable
57,849
Allowance for Doubtful Debts
830
Inventory
15,810
GST Paid
3,458
Land
58,000
Motor Vehicle
30,280
Accumulated Accumulated Depreciation - Motor Vehicle
13,626
Investments in Shares
30,000
Accounts Payable
36,663
GST Collected
6,200
Buildings
33,600
Accumulated Depreciation - Buildings
3,880
Share Capital, 1/7/17
35,131
Sales
248,195
Rent Received
4,605
Cost of Goods Sold
137,417
Postage
2,271
Office Wages
29,519
Insurance
3,665
Bad Debt Expense
2,371
Interest Paid
424
Retained Earnings, 1/7/17
107,433
H&M Supermarkets
Income Statement
For the year ending 30 June 2018
Revenue
Gross Profit
Other Revenue
Total Revenue
Marketing and Selling
General and Administrative
Financial and Borrowing
Total expenses
Net profit
H&M Supermarkets
Statement of Changes in Equity
For the year ending 30 June 2018
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