Accounting policies a. Business operations: Paul Ray set up his own business Cu Appliance Services as a sole trader on April 1 2021. The business derives its main source of Revenue from offering whiteware appliance repair and maintenance services, but from February 1 2022 also sells washing machines and keeps a small inventory on hand. The business operates from a building in Christchurch, owned by the business. Funds for the purchase were sourced from a 6-year bank loan. The only employee, Harry Fox, is hired during the first month of operations to assist Paul with basic repairs, answering phone calls, and sweeping the workshop floor. Harry Fox is paid every two weeks. You are advised to ignore the effect of PAYE (salary deductions). [ASIDE: This is an assumption to make this part of the practice set easier for you to complete. In the real world, PAYE cannot be ignored.] b. Revenue recognition: The business recognises Revenue when services are provided to clients and when goods sold are delivered to customers. Payment for services provided may be either in cash or on credit. Services Revenue is recorded in a separate account from goods sold (Sales). c. Inventories: The business uses the periodic inventory system and the First-in, First-out method. d. Property, plant and equipment: Property, plant and equipment items are depreciated over their estimated useful life. The method to calculate the depreciation charge depends on the individual item. Calculate depreciation to the nearest month. Instructions Now that you have reviewed the information about Cu Appliance Services, you are ready to complete the accounting cycle for Cu Appliance Services for the year ending March 31 2022. To start, Paul gave you an Unadjusted Trial Balance. While you were reviewing the accounting records, you also obtained some additional information for you to complete the end-of-year accounting tasks. The templates are provided in the Microsoft Excel spreadsheet, Practice Set Part 2 Template.xlsx. Please complete the following tasks on the template provided. Paul provides the following list of tasks you are required to perform for the year ended March 31 2022 a. Balance Day Adjustments Record all the balance day adjustments in the General Journal Correct the errors by preparing correcting entries in the General Journal Please complete these tasks in the Microsoft Excel template on the sheet Balance Day Adjustments. For additional information 13, please include your workings and calculations for the deprecation expense in the template on the sheet Non-current Assets. Note: Remember to enter all figures to the nearest whole dollar. b. Inventory Prepare an Inventory Card for the washing machine based on the periodic system and the First-in, First-out method. Calculate Gross Profit for the year ended March 31 2022, from selling washing machines. Please complete these tasks in the Microsoft Excel template on the sheet Inventory. c. Trial Balance Complete the Adjusted Trial Balance as at March 31 2022. Please complete this task in the Microsoft Excel template on the sheet Trial Balance. Closing entries (you dont need to post the closing entries to the trial balance) Close income statement accounts that have credit balances Close income statement accounts that have debit balances Close profit to capital Close drawings to capital Please complete these tasks in the Microsoft Excel template on the sheet Closing Entries. Please note that under the periodic system, the opening inventory and ending inventory balance needs to be included in the closing entries. Opening inventory is zero for Cu Appliance Services. After completing the tasks for Cu Appliance Services, you should double-check your work and ensure that you have completed all of the accounting records before submitting them for review. Note: The Microsoft Excel spreadsheet called Practice Set Part 2 Template is the only file to be submitted. Cu Appliance Services is GST registered at 15% on an invoice basis. All figures in this question are GST exclusive unless otherwise stated. prepare the balance day adjustments,

The template is as follows;

Paul provides the following list of tasks you are required to perform for the year ended March 312022 a. Balance Day Adjustments - Record all the balance day adjustments in the General Journal - Correct the errors by preparing correcting entries in the General Journal - Please complete these tasks in the Microsoft Excel template on the sheet Balance Day Adjustments. - For additional information 13, please include your workings and calculations for the deprecation expense in the template on the sheet Non-current Assets. Note: Remember to enter all figures to the nearest whole dollar. b. Inventory - Prepare an Inventory Card for the washing machine based on the periodic system and the First-in, First-out method. - Calculate Gross Profit for the year ended March 31 2022, from selling washing machines. - Please complete these tasks in the Microsoft Excel template on the sheet Inventory. c. Trial Balance - Complete the Adjusted Trial Balance as at March 312022. - Please complete this task in the Microsoft Excel template on the sheet Trial Balance. d. Closing entries (you don't need to post the closing entries to the trial balance) - Close income statement accounts that have credit balances - Close income statement accounts that have debit balances - Close profit to capital - Close drawings to capital - Please complete these tasks in the Microsoft Excel template on the sheet Closing Entries. Please note that under the periodic system, the opening inventory and ending inventory balance needs to be included in the closing entries. Opening inventory is zero for Cu Appliance Services. After completing the tasks for Cu Appliance Services, you should double-check your work and ensure that you have completed all of the accounting records before submitting them for review. Note: The Microsoft Excel spreadsheet called "Practice Set Part z - Template" is the only file to be submitted. Pre-adjusted Trial Balance at balance date March 312022 for Cu Appliance Services 1. Paul asked you to conduct a stocktake. You found that workshop supplies on hand on March 312022 total $5,000 2. Electricity for March 2022 has not been paid. Cu Appliance Services has not received an invoice but estimates the amount to be $1,100. 3. The prepaid insurance is the yearly premium for insurance, starting October 12021. 4. Repair services of $4,500 have been completed for North Ltd, but the invoice had not been sent on March 312022. 5. On October 1, Cu Appliance Services received \$6,900 (GST Inclusive) from a customer for 6 months of equipment maintenance service. The transaction was recorded as Revenue Recelved in Advance on October 1. 6. As the market grows, Cu Appliance Services employs contractor technicians. Wages owed to contractors at the end of March 2022 total $9,100. The wages won't be paid untili April 7. 7. Interest on the loan of $2,000 for March has not been recorded. It will be received on April 2 2022 . 8. A cash recelpt of $2,070 (GST inclusive) on March 18 from an existing credit customer was mistakenly treated as a new sale of services. This error needs to be corrected. 9. You found that a cash payment amount of $230 (GST inclusive) was recorded as an advertising expense for March. However, it should be drawings. This error needs to be corrected. 10. The Service Revenue includes a prepayment of $2,000 for maintenance services to be provided in April 2022. This error needs to be corrected. 11. Service revenue of $2,300 cash recelved from Tony is recorded twice in the accounts. 12. Paul thinks $4,000 in Accounts Receivable might become uncollectable in the future. 13. Depreciation has not been accounted for. The details for the non-current assets are provided in the table below: Please calculate depreciation to the nearest month (not days). 14. The business operates a periodic inventory system using the FIFO method. You and Paul conduct a stocktake together. The stocktake shows that the business has 30 washing machines on hand on March 312022 Purchases data for the washing machines in 2022 is shown below. All amounts are exclusive of GST. \begin{tabular}{|c|c|c|c|c|} \hline \multicolumn{2}{|c|}{ General Journal } \\ \hline \multicolumn{2}{|c|}{ Account } & ost ref & Debit & Credit \\ \hline Date & Acount & \multicolumn{2}{|c|}{ Page } \\ \hline \end{tabular} Hint: Calculate depreciation to the nearest month (not days). Workings: Workshop Machinery Inventory Card Hint: Any purchase returns need to be treated as a negative purchase. Cu Appliance Services Adjusted Trial Balance As at 31 March 2022 \begin{tabular}{|c|c|c|c|c|} \hline \multicolumn{4}{|c|}{ General Journal } & Page \\ \hline \multicolumn{1}{|c|}{} & \multicolumn{2}{c|}{} \\ \hline Date & Account & Post ref. & Debit & Credit \\ \hline \end{tabular} Paul provides the following list of tasks you are required to perform for the year ended March 312022 a. Balance Day Adjustments - Record all the balance day adjustments in the General Journal - Correct the errors by preparing correcting entries in the General Journal - Please complete these tasks in the Microsoft Excel template on the sheet Balance Day Adjustments. - For additional information 13, please include your workings and calculations for the deprecation expense in the template on the sheet Non-current Assets. Note: Remember to enter all figures to the nearest whole dollar. b. Inventory - Prepare an Inventory Card for the washing machine based on the periodic system and the First-in, First-out method. - Calculate Gross Profit for the year ended March 31 2022, from selling washing machines. - Please complete these tasks in the Microsoft Excel template on the sheet Inventory. c. Trial Balance - Complete the Adjusted Trial Balance as at March 312022. - Please complete this task in the Microsoft Excel template on the sheet Trial Balance. d. Closing entries (you don't need to post the closing entries to the trial balance) - Close income statement accounts that have credit balances - Close income statement accounts that have debit balances - Close profit to capital - Close drawings to capital - Please complete these tasks in the Microsoft Excel template on the sheet Closing Entries. Please note that under the periodic system, the opening inventory and ending inventory balance needs to be included in the closing entries. Opening inventory is zero for Cu Appliance Services. After completing the tasks for Cu Appliance Services, you should double-check your work and ensure that you have completed all of the accounting records before submitting them for review. Note: The Microsoft Excel spreadsheet called "Practice Set Part z - Template" is the only file to be submitted. Pre-adjusted Trial Balance at balance date March 312022 for Cu Appliance Services 1. Paul asked you to conduct a stocktake. You found that workshop supplies on hand on March 312022 total $5,000 2. Electricity for March 2022 has not been paid. Cu Appliance Services has not received an invoice but estimates the amount to be $1,100. 3. The prepaid insurance is the yearly premium for insurance, starting October 12021. 4. Repair services of $4,500 have been completed for North Ltd, but the invoice had not been sent on March 312022. 5. On October 1, Cu Appliance Services received \$6,900 (GST Inclusive) from a customer for 6 months of equipment maintenance service. The transaction was recorded as Revenue Recelved in Advance on October 1. 6. As the market grows, Cu Appliance Services employs contractor technicians. Wages owed to contractors at the end of March 2022 total $9,100. The wages won't be paid untili April 7. 7. Interest on the loan of $2,000 for March has not been recorded. It will be received on April 2 2022 . 8. A cash recelpt of $2,070 (GST inclusive) on March 18 from an existing credit customer was mistakenly treated as a new sale of services. This error needs to be corrected. 9. You found that a cash payment amount of $230 (GST inclusive) was recorded as an advertising expense for March. However, it should be drawings. This error needs to be corrected. 10. The Service Revenue includes a prepayment of $2,000 for maintenance services to be provided in April 2022. This error needs to be corrected. 11. Service revenue of $2,300 cash recelved from Tony is recorded twice in the accounts. 12. Paul thinks $4,000 in Accounts Receivable might become uncollectable in the future. 13. Depreciation has not been accounted for. The details for the non-current assets are provided in the table below: Please calculate depreciation to the nearest month (not days). 14. The business operates a periodic inventory system using the FIFO method. You and Paul conduct a stocktake together. The stocktake shows that the business has 30 washing machines on hand on March 312022 Purchases data for the washing machines in 2022 is shown below. All amounts are exclusive of GST. \begin{tabular}{|c|c|c|c|c|} \hline \multicolumn{2}{|c|}{ General Journal } \\ \hline \multicolumn{2}{|c|}{ Account } & ost ref & Debit & Credit \\ \hline Date & Acount & \multicolumn{2}{|c|}{ Page } \\ \hline \end{tabular} Hint: Calculate depreciation to the nearest month (not days). Workings: Workshop Machinery Inventory Card Hint: Any purchase returns need to be treated as a negative purchase. Cu Appliance Services Adjusted Trial Balance As at 31 March 2022 \begin{tabular}{|c|c|c|c|c|} \hline \multicolumn{4}{|c|}{ General Journal } & Page \\ \hline \multicolumn{1}{|c|}{} & \multicolumn{2}{c|}{} \\ \hline Date & Account & Post ref. & Debit & Credit \\ \hline \end{tabular}