A new business graduate with one subject of accounting prepared the financial statements below for Helens Dancing

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A new business graduate with one subject of accounting prepared the financial statements below for Helen’s Dancing School at the end of the first year of operations.


Additional analysis revealed the following.
1. Dancing fees of $7500 (owed by customers) were unrecorded at 30 June.
2. Additional equipment of $10 500 purchased with a bank loan at the end of the month had not been recorded.
3. Supplies on hand at 30 June costing $10 600 were included in expenses.
4. Wages of $2500 were payable at 30 June.


Required
A. Prepare a corrected income statement for the year ended 30 June 2015.
B. Prepare a corrected balance sheet in narrative form as at 30 June 2015.
C. Prepare a statement of changes in equity for the year ended 30 June 2015.
D. Discuss the accounting assumptions that the graduate has breached.

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Related Book For  book-img-for-question

Financial Accounting

ISBN: 9781118608203

9th Edition

Authors: John Hoggett, Lew Edwards, John Medlin, Keryn Chalmers, Jodie Maxfield, Andreas Hellmann, Claire Beattie

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