Assignment 1A - BAF3M1 SVS The purpose of this assignment is for you to demonstrate your ability to record business transactions and then prepare a properly formatted income statement and balance sheet. The one additional requirement is that you answer the questions that you find below. Questions to be answer 1. What is the company's ending Cash balance? What is the company's ending Equity? Why is cash not equal to equity? 2. What is the company's net income for the period? 3. If you had to repay your creditors today, could you? Explain. 4. The company made a small amount of net income over the month. Explain why the equity actually decreased over the period. 5. You have recorded journal entries for the period of a month. If you were told that the business license in T12 was a annual expense, would this impact the reported net income? Explain why or why not. Marking Scheme Knowledge and Understanding Demonstrates thorough knowledge and understanding of course content. Through response to 5 questions, demonstrates a thorough understanding of course content. Total for Knowledge and Understanding 10 10 Communication Expresses and organizes ideas and information with a high degree of effectiveness. Financial statements prepared in the required form and with appropriate formatting. Answers to questions are written and presented in a professional manner. Total for Communication 8 2 10 Application Journal Entries Applies knowledge and skills in a familiar context with a high degree of effectiveness. Journal entries recorded properly in an organized fashion within the spreadsheet. Total for Application 10 10