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:

1. 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)
2. 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