MBA 906

Assessment type: Written individual Report using template provided. Purpose: To understand the accounting cycle from transaction analysis, journals through to creating financial statements. This assessment relates to learning outcomes a, b, c, d.

Submission requirement: Written report to be uploaded to Turnitin.

Submission requirement details: Using the template provided, replicate the accounting cycle by compiling financial statements based on data to be provided by students. Accounting Cycle (15 Marks)

Financial Information

Cchart of Accounts

#	Account Name	#	Account Name
101	Cash at Bank	301	Bill, Capital
102	Accounts Receivable	302	Bill, Drawings
103	Office Supplies	401	Service Revenue
104	Prepaid Subscriptions	501	Utilities Expense
110	Office Furniture	502	Wages Expense
111	Accumulated Depreciation-Furniture	503	Depreciation Expense-Furniture
201	Accounts Payable	504	Supplies Expense
202	Unearned Service Revenue	505	Subscriptions Expense
204	Interest Payable	506	Interest Expense
211	Loan Payable

Financial Transactions

Financial Transactions during the year

Date	Transactions	Amount
1/04/2023	Bill invested cash into his business	$
1/04/2023	Borrowed money from Rabo Bank. Interest rate is 6% per annum.	$
1/04/2023	Purchased office furniture in cash. The furniture has a useful life of 5 years with no salvage value. The business uses a straight-line method	$
15/04/2023	Purchased office supplies on account	$
1/05/2023	Received 6 months bookkeeping service fee, and recorded the advanced payment on two balance sheet accounts	$
13/05/2023	Paid the bill received on 15/04/2023	$
1/06/2023	Paid for 12-month subscription. Bill recorded the payment as a debit to Prepaid subscriptions and a credit to Cash. The subscription started from June 2023	$
23/06/2023	Provided services on account	$
30/06/2023	Paid wages to a short-term contract employee	$
30/06/2023	Received an invoice for utilities used	$
30/06/2023	Bill made withdrawal from business account	$

Adjustment Transactions as at 30 June 2023

Date	Transactions
30/06/2023	Depreciation Expense for office furniture
30/06/2023	During the period the business used one third of supplies
30/06/2023	Adjustment of unearned service revenue
30/06/2023	Subscription fee expired
30/06/2023	The interest on loan for the month of June is not paid yet

1. General Journal

Date	Accounts	Debit	Credit
1/04/2023
	Investment by the owner
1/04/2023
	Loan borrowed
1/04/2023
	Purchased office furniture in cash
15/04/2023
	Purchased supplies on account
1/05/2023
	Advanced Receipt of 6-month service
13/05/2023
	Payment of outstanding bill
1/06/2023
	Prepayment for 12 months subscription
23/06/2023
	Service Rendered on account
30/06/2023
	Wages expense paid
30/06/2023
	Utility expense incurred
30/06/2023
	Withdrawal by the owner

1. General Ledger

Cash at Bank
1/04/2023		1/04/2023
1/04/2023		13/05/2023
1/05/2023		1/06/2023
		30/06/2023
		30/06/2023
EB

Accounts Receivable
23/06/2023
EB

Office Supplies
15/04/2023
EB

Prepaid Subscriptions
01/06/2023
EB

Office Furniture
01/04/2023
EB

Bill, Capital
		1/04/2023
EB

Bill, Drawings
30/06/2023
EB

Accounts Payable
13/05/2023		15/04/2023
		30/06/2023
		EB
Loan Payable
		01/04/2023
		EB

Unearned Service Revenue
		01/05/2023
		EB

Wages Expense
	01/05/2023

Utilities Expense
	01/05/2023

Worksheet

Bill's Consulting Services Worksheet

for the year ended 30 June 2023

Account Name	Unadjusted Trial Balance	Adjustments	Adjusted Trial Balance	Income statement	Balance sheet
Debit	Credit	Debit	Credit	Debit	Credit	Debit	Credit	Debit	Credit
Cash at Bank
Accounts Receivable
Office Supplies
Prepaid Subscriptions
Office Furniture
Accum. Depreciation- Furniture
Accounts Payable
Unearned Service Revenue
Interest Payable
Loan Payable
Bill, Capital
Bill, Drawings
Service Revenue
Utilities Expense
Wages Expense
Depreciation Expense- Furniture
Supplies Expense
Subscriptions Expense
Interest Expense
Total
Profit for the period

Financial Statements

Bill's Consulting Services

Income Statement

for the year ended 30 June 2023

Income
Service Revenue
Total Income

Expenses
Utilities Expense
Wages Expense
Depreciation Expense-Furniture
Supplies Expense
Subscriptions Expense
Interest Expense
Total Expenses

Net Income before Tax

Alex, Capital- Beginning

Bill's Consulting ServicesStatement of changes in Equity for the year ended 30 June 2023

Add: Additional contribution
Add: Net Income (Loss) during the period
Less: Drawings

Increase or Decrease in Equity

Alex, Capital- Ending

Bill's Consulting ServicesStatement of financial position As at 30 June 2023

ASSETS

Cash at Bank
Accounts Receivable
Office Supplies
Prepaid Subscriptions
Office Furniture
Accumulated Depreciation-Furniture
Total Assets

LIABILITIES

Accounts Payable
Unearned Service Revenue
Interest Payable
Loan Payable
Total Liabilities

Total Assets - Total Liabilities

EQUITY

Alex, Capital
Total Equity

1.7 Theory questions (5 Marks)

1. What are the 5 fundamental principles of ethics and summarize in bullet point form? (Read APES 110 Code of Ethics and cite the relevant paragraph) (300 words)

1. Assume you are a Junior Accountant in a company, and you are asked by your Manager to deliberately change numbers in order to increase profits? Explain how you would deal with this considering the principles set out in APES 110. (200 words)

Please fill up the given table accordingly to the requirement of question and give the answer of theory question with maintaing the word limit..