The new accounting intern has completed the Statement of cash flow for the 3 months ended...

  

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The new accounting intern has completed the Statement of cash flow for the 3 months ended June 30, 2021 for your review Cash flow statement 3 months ended June 30, 2021 $ Cash flows from operating activities Receipts from customers (incGST) Payments for inventory (inc GST) Payments for expenses Net cash from operating activities Cash flows from investing activities Payments for furniture Payments for software GST paid on purchases of non-current assets Net cash from investing activities Cash flows from financing activities Capital invested by partners Payments for drawings Net cash from financing activities Change in cash balance Add: Cash at the start of the period Cash at the end of the period 39,248.00 -25,205.40 -7,001.50 -800.00 -1800.00 -260.00 40,000.00 -4,500.00 39,681.10 0 $ 7,041.10 -2,860.00 35,500.00 39,681.10 You have identified same errors which GST paid on investing activities is incorrectly posted and categorised as a cash flow from investing activities. It is not complied with the accounting standards UIG 1031. Accounting for the Goods and Services Tax (GST) Consensus 11, which states: "The GST component of cash flows arising from investing and financing activities which is recoverable from, or payable to the taxation authority shall be classified as operating cash flows* Task 4a Check for consistency and accuracy of the cash flow data provided. Review the incorrect Cash Flow statement above for errors and non-compliance with the accounting standards and organisational procedures. Make the amendments and prepare the correct statement in the template provided. Cash flow statement for the 3 months ended June 30 2021 Cash flows from operating activities Cash flows from investing activities Cash flows from financing activities + + UNIVERSITY Impressed with the quality of the professional advice that you have provided to one of your clients, you have been assigned a task of reviewing financial data and preparing a financial statement for a partnership business name Easy Traders. The cash at bank statement information provided which may be helpful in your preparation of the financial statements. The following information of summarised bank account was given for Easy Traders Partnership. wwwwwwwwww Date 1/07/2020 30/06/2021 Details Cash at Bank as at 1 July 2020 Cash Sales Receipts from Accounts Receivable Payments to Accounts Payable Maney barrowed from ME Bank Received from sale of Milling Equipment Paid for purchase of new Milling Equipment Interest Received Payment to suppliers Wages paid Operating Expenses Paid Capital by owners Cash at ANB Bank GST Paid to ATO Repayment of Bank loan Drawings by the owner S 77,000 S 253,000 $ Debit S 25,000 94,160 10,920 S 50,000 $ $ $ $ $ S $ Credit Balance S S S 154,000 $ 156,530 8,800 Dr 85,800 Dr 338,800 Dr 184,800 $ 209,800 $ 303,960 $ 147,430 $ 158,350 2,400 $ 155,950 42,760 $ 113,190 66,000 $ $ 16,000 S 10,000 $ 700 S 47,190 97,190 81,190 71,190 70,490 Dr Dr Dr Dr Dr Dr Dr Dr Dr Dr Dr Dr Task 4b Based on the above information you need to complete a Statement of Cash Flows for the year ended 30/06/2021 using the structure and format given that comply with accounting standards in the template below. Check your answers for accuracy and show all your workings if necessary. Statement of Cash Flows of Easy Traders for the year ended 30 June 2021 Cash Flows from Operating Activities: Cash Flows from Investing Activities: Cash Flows from Financing Activities: [+] The new accounting intern has completed the Statement of cash flow for the 3 months ended June 30, 2021 for your review Cash flow statement 3 months ended June 30, 2021 $ Cash flows from operating activities Receipts from customers (incGST) Payments for inventory (inc GST) Payments for expenses Net cash from operating activities Cash flows from investing activities Payments for furniture Payments for software GST paid on purchases of non-current assets Net cash from investing activities Cash flows from financing activities Capital invested by partners Payments for drawings Net cash from financing activities Change in cash balance Add: Cash at the start of the period Cash at the end of the period 39,248.00 -25,205.40 -7,001.50 -800.00 -1800.00 -260.00 40,000.00 -4,500.00 39,681.10 0 $ 7,041.10 -2,860.00 35,500.00 39,681.10 You have identified same errors which GST paid on investing activities is incorrectly posted and categorised as a cash flow from investing activities. It is not complied with the accounting standards UIG 1031. Accounting for the Goods and Services Tax (GST) Consensus 11, which states: "The GST component of cash flows arising from investing and financing activities which is recoverable from, or payable to the taxation authority shall be classified as operating cash flows* Task 4a Check for consistency and accuracy of the cash flow data provided. Review the incorrect Cash Flow statement above for errors and non-compliance with the accounting standards and organisational procedures. Make the amendments and prepare the correct statement in the template provided. Cash flow statement for the 3 months ended June 30 2021 Cash flows from operating activities Cash flows from investing activities Cash flows from financing activities + + UNIVERSITY Impressed with the quality of the professional advice that you have provided to one of your clients, you have been assigned a task of reviewing financial data and preparing a financial statement for a partnership business name Easy Traders. The cash at bank statement information provided which may be helpful in your preparation of the financial statements. The following information of summarised bank account was given for Easy Traders Partnership. wwwwwwwwww Date 1/07/2020 30/06/2021 Details Cash at Bank as at 1 July 2020 Cash Sales Receipts from Accounts Receivable Payments to Accounts Payable Maney barrowed from ME Bank Received from sale of Milling Equipment Paid for purchase of new Milling Equipment Interest Received Payment to suppliers Wages paid Operating Expenses Paid Capital by owners Cash at ANB Bank GST Paid to ATO Repayment of Bank loan Drawings by the owner S 77,000 S 253,000 $ Debit S 25,000 94,160 10,920 S 50,000 $ $ $ $ $ S $ Credit Balance S S S 154,000 $ 156,530 8,800 Dr 85,800 Dr 338,800 Dr 184,800 $ 209,800 $ 303,960 $ 147,430 $ 158,350 2,400 $ 155,950 42,760 $ 113,190 66,000 $ $ 16,000 S 10,000 $ 700 S 47,190 97,190 81,190 71,190 70,490 Dr Dr Dr Dr Dr Dr Dr Dr Dr Dr Dr Dr Task 4b Based on the above information you need to complete a Statement of Cash Flows for the year ended 30/06/2021 using the structure and format given that comply with accounting standards in the template below. Check your answers for accuracy and show all your workings if necessary. Statement of Cash Flows of Easy Traders for the year ended 30 June 2021 Cash Flows from Operating Activities: Cash Flows from Investing Activities: Cash Flows from Financing Activities: [+]

Answer rating: 100% (QA)

As per the AASB 107 cash flow is classified under three activities cash flow from operating cash flow from investing and cash flow from financing acti... View the full answer