A. Prepare necessary adjustments for depreciation expense and other expenses for the month
B. Prepare the income statement for JJ Asian Cuisine for the month ending 31 July
C. Prepare the balance sheet statement for JJ Asian Cuisine as at 31 July
Include the above transactions in the Income Statements and Balance Sheet
2. Construct the Cash Flows Statement for the month ended 31 July (include the above transaction)
3. Compare the cash balance at the end of the month and the profit made at the end of the month and fully comment on what you observe
Jason and dames started I Asian Cuisine on truly, the following transactions occurred in July: Amounts 20.000 so 800 2.000 2.000 Price - 132 Price 128 Dete Transactions 1-ul a borrowed from parents and contributed cath into the businest 1-1 Paid for business registration 2- Paid for vacuum sealer machine 24ut Arranged credit card facility with the bank to a limit of; 2.lul Paid for bowl sesling machine and shipping fees 2-ut Cash purchase of foam bawi Units 1,100 $ 0.12 2-Jul Cash purchase of vacuum seal bags Units 1,600 50.08 3-lul Credit card purchase of tiny containers (Small plastic for chilies oil) Units 3,800 $ 0.10 3-lul Received an invoice for website set up costs 3-lut Paid rent as required by rental agreement. No of months per month $ 1.320.00 4-lul First delivery of product to customers, received cash Units 300 $7.20 4-Jul Agreed with an IGA Supermarket to provide a sample batch of product Units 400 S 7.20 Slul Received grocery bill meat and other ingredients supplies 6-lo Sent invoices to friends who are yet to make payments Price 380 1.200 3.950 Price 2,150 Price u 2.880 1.537 576 7-Jul Paid for petrol, (using James Honda Jazz to pick up purchases and make deliveries Slut Delivered on 4th of July order above, to IGA Supermarket. (paid in full a credit card 11 2.80 10-kulmes place an order for more grocery supplies Llul Pick up and said for the grocery supplies ordered 315 23-hul Drawings to lason and James 27-Sold Droduct at a local comienity street festival rentalang Clayton Road sod Seressed 160 Price per serve 5 720 30-Juf Recorded depreciation for the month Policies Treat an experts - Neared one for the month Patta 1 Trepte at purchase L 2 Packaging Equipment, Used to vacuum seal the needles into the cam seal 21 3 Packaging Equipment Used to leak proot soup into foam how the & Packaging Supplies, All supplies used to package the product. Includes vacuum seal hagi and small plastic containers Treat ASSET at purchase. (Fig 1, F2, 5 Set Up Cost Treats asset at purchase 6 Hent amount paids for three manths beginning ist of July: "Prepaid 7 Groceries purchased as required treat as DOENSE at purchase Additional information Policies and Estimates Vacuum sealer and bowl sealing machines, both deprecated on a straight line method with an estimated useful fe of years and five years, and both having NL Salve value Website is deprecated under straight line method, three years All grocery supplers are purchased and USED as required; no material amounts of grocery supplies are stored FIGE 1 FIGUREZ FIGURE 3 Small serve up P1 FIGURE 3. Small side serve cups Adjustments Depreciation is calculated on a STRAIGHT LINE method Vesumo Sealer machine Estimated useful life years with rero residual value Bowl Sealing machine; Estimated useful life 5 years with sera residual value Website Set Up Costs: Depreciate over three years A physical count of the Packaging Supplies on hand at the end of the month revealed; Units Containers 1,920 Bowls 160 Vacuum seal bags 660 The rent amount maid covers three months ononth of this amount has been USED Electricity and Gas used for the month (Clectricity and Gas is pardos uarterly basis at the end of each quartier Water used for the month (Water is bilied and paid at the end of each quarter $ 323 20 5 58.RO Required: A. Prepare necessary adjustments for depreciation expense and other expenses for the month 8. Prepare the income statement for Asian Cuisine for the month ending 31 July Prepare the balance sheet statement for 11 Asian Cuisine as at 31 July After the discussion, Jason and James agree to purchase the car off James for business use for $15,000. They approached the CBA bank for a loan. Initially, the bank preapproved to lend them $10,000 as secured loan, 12% interest per year and repayment term is monthly. The balance for the cost of the car is coming out of the business account. However, the business is new, so CBA only agreed for the loan term to be 1 year, the terms story the same. Jason and James negotiated to pay monthly interest only for the loan and the balance of the principle will be paid at the end of the term. The interest will be paid in advance starting from 31 July The car is depreciated over 5 years under straight-line method. At the end of five year the residual value is $5,000 Summary: Transactions as per week 4 and 5, apply 1/S and B/s from week 5 is departure point Additional Events (End of July! 31-Jul Bank "Preapproved" loan agreed. Purchase price of proposed vehicle Balance to be paid by business S s S 10,000 15 000 5.000 1 1 Loan terms Loan length (years) Payment frequency Interest rate (annual) Payment structure Advance / Arrears 2 Depreciation Vehicle Cost Residual Useful life Dests Monthly 12% Interest only Advance S s 15,000 5.000 5 2.000 s Required: 1. Include the above transactions in the Income Statements and Balance Sheet 2. Construct the Cash Flows Statement for the month ended 31 July include the above transaction) 3. Compare the cash balance at the end of the month and the profit made at the end of the month and fully comment on what you observe Units Jason and James started JJ Asian Cuisine on 01st July, the following transactions occurred in July: Date Transactions Amounts 1-Jul J & J borrowed from parents and contributed cash into the business. 20,000 1.Jul Paid for business registration 90 2-Jul Paid for vacuum sealer machine 2 800 2-Jul Arranged credit card facility with the bank to a limit of; 2,000 2-Jul Paid for bowl sealing machine and shipping fee : 3,000 2-Jul Cash purchase of foam bowls 4 Price pu 132 1,100 $ 0.12 2-Jul Cash purchase of vacuum seal bags Units Price pu 128 1,600 $ 0.08 3-Jul Credit card purchase of tiny containers (Small plastic for chillies oil) Units Price p.u 380 3,800 $ 0.10 3-Jul Received an invoice for website set up costs 1,200 3-Jul Paid rent as required by rental agreement. 6 3,960 No of months 3 per month $ 1,320.00 4-Jul First delivery of product to customers; received cash. Units Price p.u 2,160 300 $ 7.20 4-Jul Agreed with an IGA Supermarket to provide a sample batch of product. Units Price p.u 2,880 400 $ 7.20 5-Jul Received grocery bill (meat and other ingredients; supplies) 7 1,537 6-Jul Sent invoices to friends who are yet to make payments 576 7-Jul Paid for petrol, (using James Honda Jazz to pick up purchases and make deliveries 113 9-Jul Delivered on 4th of July order above, to IGA Supermarket. (paid in full via credit card) 2,880 380 10-Jul James placed an order for more grocery supplies 11-Jul Pick up and paid for the grocery supplies ordered 315 23-Jul Drawings to Jason and James 27-Jul Sold product at a local community street festival event along Clayton Road. 600 1,152 Serves sold 160 Price per serve $ 7.20 30-Jul Recorded depreciation for the month 7 ? Policies 1 Treat as expense at purchase. 2 Packaging Equipment; Used to vacuum seal the noodles into the vacuum seal bags. (Fig 2) 3 Packaging Equipment; Used to leak proof soup into foam bowls (Fig 1). 4 Packaging Supplies, All supplies used to package the product. Includes vacuum seal bags and small plastic containers. Treat as ASSET at purchase. (Fig 1, Fig 2, Fig 3) 5 Set Up Costs; Treat as asset at purchase. 6 Rent amount paid is for three months beginning 1st of July: "Prepaid" 7 Groceries purchased as required; treat as EXPENSE at purchase Additional information: Policies and Estimates Vacuum sealer and bowl sealing machines, both depreciated on a straight-line method, with an estimated useful life of six years and five years, and both having NIL salvage value. Website is depreciated under straight-line method, three years. All grocery supplies are purchased and USED as required; no material amounts of grocery supplies are stored. FIGURE 1. BOWL SEALING MACHINE FIGURE 2. FOAM CUP FIGURE 3. Small side serve cups FIGURE 1 BOW SEAUNG MACHINE FIGURE 2. FOAM CUP FIGURE 3. Small side serve cups Adjustments Depreciation is calculated on a STRAIGHT LINE method Vacumn Sealer machine; Estimated useful life 6 years with zero residual value. Bowl Sealing machine; Estimated useful life 5 years with zero residual value. Website Set Up Costs; Depreciate over three years A physical count of the Packaging Supplies on hand at the end of the month revealed; Units Containers 1,920 Bowls 160 Vacuum seal bags 660 The rent amount paid covers three months; one month of this amount has been USED. Electricity and Gas used for the month (Electricity and Gas is paid on a quarterly basis at the end of each quarter) Water used for the month (Water is billed and paid at the end of each quarter) $ 323.20 $ 58.80 After the discussion, Jason and James agree to purchase the car off James for business use for $15,000. They approached the CBA bank for a loan. Initially, the bank preapproved to lend them $10,000 as secured loan, 12% interest per year and repayment term is monthly. The balance for the cost of the car is coming out of the business account. However, the business is new, so CBA only agreed for the loan term to be 1 year, other terms stay the same. Jason and James negotiated to pay monthly interest only for the loan and the balance of the principle will be paid at the end of the term. The interest will be paid in advance starting from 31 July. The car is depreciated over 5 years under straight-line method. At the end of five year the residual value is $5,000 Summary: Transactions as per week 4 and 5, apply 1/S and B/s from week 5 is departure point. Additional Events (End of July) 31-Jul Bank "Preapproved" loan agreed. 1 Purchase price of proposed vehicle 2 Balance to be paid by business li $ $ $ 10,000 15,000 5,000 1 1 Loan terms. Loan length (years) Payment frequency Interest rate (annual) Payment structure Advance / Arrears 2 Depreciation Vehicle Cost Residual Useful life (yrs) Dept'n Monthly 12% Interest only Advance $ $ 15,000 5,000 5 2,000 $ Jason and dames started I Asian Cuisine on truly, the following transactions occurred in July: Amounts 20.000 so 800 2.000 2.000 Price - 132 Price 128 Dete Transactions 1-ul a borrowed from parents and contributed cath into the businest 1-1 Paid for business registration 2- Paid for vacuum sealer machine 24ut Arranged credit card facility with the bank to a limit of; 2.lul Paid for bowl sesling machine and shipping fees 2-ut Cash purchase of foam bawi Units 1,100 $ 0.12 2-Jul Cash purchase of vacuum seal bags Units 1,600 50.08 3-lul Credit card purchase of tiny containers (Small plastic for chilies oil) Units 3,800 $ 0.10 3-lul Received an invoice for website set up costs 3-lut Paid rent as required by rental agreement. No of months per month $ 1.320.00 4-lul First delivery of product to customers, received cash Units 300 $7.20 4-Jul Agreed with an IGA Supermarket to provide a sample batch of product Units 400 S 7.20 Slul Received grocery bill meat and other ingredients supplies 6-lo Sent invoices to friends who are yet to make payments Price 380 1.200 3.950 Price 2,150 Price u 2.880 1.537 576 7-Jul Paid for petrol, (using James Honda Jazz to pick up purchases and make deliveries Slut Delivered on 4th of July order above, to IGA Supermarket. (paid in full a credit card 11 2.80 10-kulmes place an order for more grocery supplies Llul Pick up and said for the grocery supplies ordered 315 23-hul Drawings to lason and James 27-Sold Droduct at a local comienity street festival rentalang Clayton Road sod Seressed 160 Price per serve 5 720 30-Juf Recorded depreciation for the month Policies Treat an experts - Neared one for the month Patta 1 Trepte at purchase L 2 Packaging Equipment, Used to vacuum seal the needles into the cam seal 21 3 Packaging Equipment Used to leak proot soup into foam how the & Packaging Supplies, All supplies used to package the product. Includes vacuum seal hagi and small plastic containers Treat ASSET at purchase. (Fig 1, F2, 5 Set Up Cost Treats asset at purchase 6 Hent amount paids for three manths beginning ist of July: "Prepaid 7 Groceries purchased as required treat as DOENSE at purchase Additional information Policies and Estimates Vacuum sealer and bowl sealing machines, both deprecated on a straight line method with an estimated useful fe of years and five years, and both having NL Salve value Website is deprecated under straight line method, three years All grocery supplers are purchased and USED as required; no material amounts of grocery supplies are stored FIGE 1 FIGUREZ FIGURE 3 Small serve up P1 FIGURE 3. Small side serve cups Adjustments Depreciation is calculated on a STRAIGHT LINE method Vesumo Sealer machine Estimated useful life years with rero residual value Bowl Sealing machine; Estimated useful life 5 years with sera residual value Website Set Up Costs: Depreciate over three years A physical count of the Packaging Supplies on hand at the end of the month revealed; Units Containers 1,920 Bowls 160 Vacuum seal bags 660 The rent amount maid covers three months ononth of this amount has been USED Electricity and Gas used for the month (Clectricity and Gas is pardos uarterly basis at the end of each quartier Water used for the month (Water is bilied and paid at the end of each quarter $ 323 20 5 58.RO Required: A. Prepare necessary adjustments for depreciation expense and other expenses for the month 8. Prepare the income statement for Asian Cuisine for the month ending 31 July Prepare the balance sheet statement for 11 Asian Cuisine as at 31 July After the discussion, Jason and James agree to purchase the car off James for business use for $15,000. They approached the CBA bank for a loan. Initially, the bank preapproved to lend them $10,000 as secured loan, 12% interest per year and repayment term is monthly. The balance for the cost of the car is coming out of the business account. However, the business is new, so CBA only agreed for the loan term to be 1 year, the terms story the same. Jason and James negotiated to pay monthly interest only for the loan and the balance of the principle will be paid at the end of the term. The interest will be paid in advance starting from 31 July The car is depreciated over 5 years under straight-line method. At the end of five year the residual value is $5,000 Summary: Transactions as per week 4 and 5, apply 1/S and B/s from week 5 is departure point Additional Events (End of July! 31-Jul Bank "Preapproved" loan agreed. Purchase price of proposed vehicle Balance to be paid by business S s S 10,000 15 000 5.000 1 1 Loan terms Loan length (years) Payment frequency Interest rate (annual) Payment structure Advance / Arrears 2 Depreciation Vehicle Cost Residual Useful life Dests Monthly 12% Interest only Advance S s 15,000 5.000 5 2.000 s Required: 1. Include the above transactions in the Income Statements and Balance Sheet 2. Construct the Cash Flows Statement for the month ended 31 July include the above transaction) 3. Compare the cash balance at the end of the month and the profit made at the end of the month and fully comment on what you observe Units Jason and James started JJ Asian Cuisine on 01st July, the following transactions occurred in July: Date Transactions Amounts 1-Jul J & J borrowed from parents and contributed cash into the business. 20,000 1.Jul Paid for business registration 90 2-Jul Paid for vacuum sealer machine 2 800 2-Jul Arranged credit card facility with the bank to a limit of; 2,000 2-Jul Paid for bowl sealing machine and shipping fee : 3,000 2-Jul Cash purchase of foam bowls 4 Price pu 132 1,100 $ 0.12 2-Jul Cash purchase of vacuum seal bags Units Price pu 128 1,600 $ 0.08 3-Jul Credit card purchase of tiny containers (Small plastic for chillies oil) Units Price p.u 380 3,800 $ 0.10 3-Jul Received an invoice for website set up costs 1,200 3-Jul Paid rent as required by rental agreement. 6 3,960 No of months 3 per month $ 1,320.00 4-Jul First delivery of product to customers; received cash. Units Price p.u 2,160 300 $ 7.20 4-Jul Agreed with an IGA Supermarket to provide a sample batch of product. Units Price p.u 2,880 400 $ 7.20 5-Jul Received grocery bill (meat and other ingredients; supplies) 7 1,537 6-Jul Sent invoices to friends who are yet to make payments 576 7-Jul Paid for petrol, (using James Honda Jazz to pick up purchases and make deliveries 113 9-Jul Delivered on 4th of July order above, to IGA Supermarket. (paid in full via credit card) 2,880 380 10-Jul James placed an order for more grocery supplies 11-Jul Pick up and paid for the grocery supplies ordered 315 23-Jul Drawings to Jason and James 27-Jul Sold product at a local community street festival event along Clayton Road. 600 1,152 Serves sold 160 Price per serve $ 7.20 30-Jul Recorded depreciation for the month 7 ? Policies 1 Treat as expense at purchase. 2 Packaging Equipment; Used to vacuum seal the noodles into the vacuum seal bags. (Fig 2) 3 Packaging Equipment; Used to leak proof soup into foam bowls (Fig 1). 4 Packaging Supplies, All supplies used to package the product. Includes vacuum seal bags and small plastic containers. Treat as ASSET at purchase. (Fig 1, Fig 2, Fig 3) 5 Set Up Costs; Treat as asset at purchase. 6 Rent amount paid is for three months beginning 1st of July: "Prepaid" 7 Groceries purchased as required; treat as EXPENSE at purchase Additional information: Policies and Estimates Vacuum sealer and bowl sealing machines, both depreciated on a straight-line method, with an estimated useful life of six years and five years, and both having NIL salvage value. Website is depreciated under straight-line method, three years. All grocery supplies are purchased and USED as required; no material amounts of grocery supplies are stored. FIGURE 1. BOWL SEALING MACHINE FIGURE 2. FOAM CUP FIGURE 3. Small side serve cups FIGURE 1 BOW SEAUNG MACHINE FIGURE 2. FOAM CUP FIGURE 3. Small side serve cups Adjustments Depreciation is calculated on a STRAIGHT LINE method Vacumn Sealer machine; Estimated useful life 6 years with zero residual value. Bowl Sealing machine; Estimated useful life 5 years with zero residual value. Website Set Up Costs; Depreciate over three years A physical count of the Packaging Supplies on hand at the end of the month revealed; Units Containers 1,920 Bowls 160 Vacuum seal bags 660 The rent amount paid covers three months; one month of this amount has been USED. Electricity and Gas used for the month (Electricity and Gas is paid on a quarterly basis at the end of each quarter) Water used for the month (Water is billed and paid at the end of each quarter) $ 323.20 $ 58.80 After the discussion, Jason and James agree to purchase the car off James for business use for $15,000. They approached the CBA bank for a loan. Initially, the bank preapproved to lend them $10,000 as secured loan, 12% interest per year and repayment term is monthly. The balance for the cost of the car is coming out of the business account. However, the business is new, so CBA only agreed for the loan term to be 1 year, other terms stay the same. Jason and James negotiated to pay monthly interest only for the loan and the balance of the principle will be paid at the end of the term. The interest will be paid in advance starting from 31 July. The car is depreciated over 5 years under straight-line method. At the end of five year the residual value is $5,000 Summary: Transactions as per week 4 and 5, apply 1/S and B/s from week 5 is departure point. Additional Events (End of July) 31-Jul Bank "Preapproved" loan agreed. 1 Purchase price of proposed vehicle 2 Balance to be paid by business li $ $ $ 10,000 15,000 5,000 1 1 Loan terms. Loan length (years) Payment frequency Interest rate (annual) Payment structure Advance / Arrears 2 Depreciation Vehicle Cost Residual Useful life (yrs) Dept'n Monthly 12% Interest only Advance $ $ 15,000 5,000 5 2,000 $
