Can someone help write a one page memo recommendation to Miller Architects regarding the possibility of acquiring an accounting package to meet the needs of the organization.

The financial figures reflecting the overall financial performance of the company for the period, are as follows

Total assets = $64,795

Total liabilities = $8,750

Total equity = $44,800

Profit for the period = $11,245

The company is performing financially better as the assets are more than the liabilities for the period and company has also generated a profit in the period.

Explanation:

The transactions taken place in June can be summarized as follows:

The entity (James miller) has issued the stock worth of $44,800 and in exchange the entity has received cash, accounts receivables, office supplies and office equipment. This will cause the assets of the entity to be increased and the stock issued will be added to the overall issued share capital of the business.

The rent paid in advance of $6,000 will be accounted as the prepaid expense for the entity and will be added to the current assets and will also reduce the cash balance of the entity (Miller Architects, Inc.).

The premium paid for the insurance which is for 6 months will be treated as prepaid insurance which will add on the current assets and will also reduce the cash balance.

Advance cash payment received from Smith company of $5,000 will cause the cash to be increased and will also add on to the current liabilities of the entity.

Purchase of computer on account represents the credit purchase of computer, Which will add to the non current assets and to the creditors as well.

Depreciation to be recorded for the month of June = (Total cost of asset / Estimated life of asset) / 12

= ($3,000 / 5) / 12

= $5

Cash received from client will add to the cash account and will also reduce the accounts receivables by $2,200.

The cash paid for advertisement will cause the cash balance to be reduced and advertisement expense to be debited.

The revenue record for the services will cause the receivables account to be debited and sales account to be credited.

Accounts payable recorded earlier on account of computer purchase will be debited by $750 and cash will also be reduced by $750.

Payment of salaries to staff will cause the salary expense to be debited and cash to be reduced.

Purchase of office supplies against cash will increase the stock of supplies and will reduce the balance of cash.

Purchase of another office equipment on account, represents the office equipment to be debited as asset and accounts payable to be credited.

The revenue record for the services will cause the receivables account to be debited and sales account to be credited.

Cash received from client will cause cash to be increased and receivables to be reduced.

Cash received from client will cause cash to be increased and receivables to be reduced.

Payment of salaries to staff will cause the salary expense to be debited and cash to be reduced.

Cash paid for telephone will increase the telephone expenses and will lead a reduction in the cash balance.

Cash paid for electricity will increase the electricity expenses and will lead a reduction in the cash balance.

Cash received from client will cause cash to be increased and receivables to be reduced.

The revenue record for the services will cause the receivables account to be debited and sales account to be credited.

Payment of dividend will cause dividend expense to be debited and cash to be reduced.

Adjustments to be made:

a)The amount of insurance expired will cause the insurance expense to be debited and prepaid insurance to be credited by $400.

b)Supplies in hand at the end amounts to $2,250 which implies that the supplies of $550 has been consumed ($2,800 - $2,250).

c)Depreciation on office equipment will be debited as an expense and it will also add to the accumulated depreciation balance of office equipment.

d)Depreciation on computer will be debited as an expense and it will also add to the accumulated depreciation balance of computer.

e)The amount of rent expired will cause the rent expense to be debited and prepaid rent to be credited by $1,000.

f) Accrued salary of staff will be credited as a liability and also cause salary expense to be debited.

g)The recognized unearned service revenue will be debited against the sales.