Dear Sir,

Kindly assist me in this practise assessment task .

attached is the word file with questions as well.

This is for FINANCIAL ACCOUNTING

2108AFE Financial Accounting Practice Set Assessment - Trimester 2, 2017 . Coffee Supremo Background and Facts Louisa Arnold is the owner of Coffee Supremo, a specialty coffee machine business she started two years ago. The business is registered for GST. Louisa sells 2 types of coffee machines that she purchases from manufacturers. She operates the business herself and employs one person full-time to assist her. Louisa also provides specialty barista training services to private clients on how to make perfect coffee. Coffee Supremo uses a perpetual inventory system and uses FIFO (First In First Out). Coffee Supremo is operated from a rented premise and the business pays rent quarterly in advance. Louisa has a variety of clients with whom she has built up a strong relationship. She offers them terms of 2/10, net/30. Louisa submits her Business Activity Statements (BAS) for GST quarterly to the Australia Taxation Office on an accrual basis. Currently, the business uses a manual accounting system but plans to test a MYOB accounting system later in the year. Accounting Information Coffee Supremo uses the following specialised and general journals to record business transactions. Sales Journal Purchases Journal Cash Receipts Journal Cash Payments Journal General Journal - to record all invoices issued for sales of inventory to record all credit purchases to record all cash received to record all cash payments to record all other transactions Coffee Supremo uses a general ledger in the form of a 4-column running balance (as described on page 22 (page 72) Exhibit 2-13 of Custom Text Chapter 1 (Chapter 2 of original). An Accounts Receivable and Accounts Payable subsidiary ledger is also used in this format. Financial Statements are prepared at the end of each month, and the accounts are closed off at the end of each month. All necessary pro-formas are included and are to be used to complete the manual practice set for August. The assignment can be completed either manually using the Excel templates provided or by computer in Excel. Page 1 of 6 Chart of Accounts and Opening Balances 1st August Account Number 110 120 121 130 140 150 160 180 181 200 220 230 250 300 310 350 410 412 415 420 500 512 515 521 530 540 560 565 570 590 Account Name Debit Cash at Bank Accounts receivable Allowance for Doubtful Debts Prepaid Insurance Prepaid Rent Office Supplies Inventory Delivery Van Accumulated Depreciation - Delivery Van Accounts Payable Wages Payable GST Clearing Superannuation Payable Capital Drawings Income Summary Sales Revenue Sales Discounts Services Revenue Interest Revenue Cost of Sales Bad debts expense Bank Charges Depreciation expense - Delivery Van Electricity and Gas Expense Insurance Expense Office Supplies Expense Rent Expense Superannuation expense Wages Expense All account balances at 1st August are normal in nature. Page 2 of 6 Credit 13,346 16,140 646 3000 950 19,000 16,995 377 1,045 756 32,617 Subsidiary Ledgers Accounts Receivable Subsidiary Ledger As at 1 August Cayden's Coffee Club H. Proctor 4,000 12,140 16,140 Accounts Payable Subsidiary Ledger As at 1 August Arabica Pty Ltd Crema Supplies Pty Ltd 6,765 10,230 16,995 Inventory on Hand As at 1 August Espresso Sprint Espresso Deluxe Units on Hand 40 10 Cost per Unit 320 620 Page 3 of 6 Total 12,800 6,200 $19,000 AUGUST TRANSACTIONS The following transactions relate to the operations of Coffee Supremo during August. Note: All amounts are GST-inclusive unless otherwise stated. Credit sales are made on credit terms of 2/10, n30 Round all amounts to the nearest cent (i.e., 29.845124 = 29.85) Date Details 1. August 1 Purchased a delivery van for $33,000 from Holland Autos on credit. Terms are n/60. Invoice number 15448. 2. August 1 Paid insurance for 6 months in advance - $2,200 - chq 71. 3. August 1 Paid Arabica Pty Ltd in full for outstanding account balance at 1st August - no discounts applicable - chq 72. 4. August 2 Sold 10 Espresso Sprint machines for cash - $6,050. 5. August 6 Purchased office supplies for cash - $330- chq 73. 6. August 9 Received amount owed by Cayden's Coffee Club for July invoices less the discount. 7. August 9 Paid fortnightly wages of $1,760 - chq 74. ($1,383 relates to August wages; $377 relates to the wages accrued for July) 8. August 12 Received payment from H. Proctor for part of the August balance - $2,140. There was no discount allowed. 9. August 14 Purchased 15 Espresso Deluxe coffee machines from Arabica Pty Ltd for $10,395. Terms 3/10, n/30, Inv. 5430. 10. August 15 Sold 17 Espresso Sprint machines to Cayden's Coffee Club for $10,285, Inv. 4564. 11. August 16 Invoiced Cayden's Coffee Club for Barista training, Inv. 4565 for $3,300. 12. August 16 The owner withdrew cash of $2,350 - chq 75. 13. August 20 Paid the 1st August amount owing to Crema Supplies Pty Ltd with chq 76. No discounts were applicable. 14. August 22 Paid electricity and gas bill, $390 - chq 77. 15. August 23 Paid fortnightly wages of $1,760 - chq 78. 16. August 23 Paid superannuation contributions owing from July of $756 - chq 79. 17. August 24 Received payment from Cayden's Coffee Club for invoice 4564, less the applicable discount. 18. August 26 Sold to H. Proctor, 10 Espresso Deluxe machines - $9,350, inv. 4566. 19. August 26 Purchased 20 Espresso Sprints coffee machines from Crema Supplies Pty Ltd for $7084. Terms 2/10, n/30, inv. 1389. 20. August 31 Recorded bank charges of $40 and interest earned of $22. Instructions for Completion of Practice Set Page 4 of 6 A. Open all general ledger accounts by inserting the opening balances at 1 August as shown in the Chart of Accounts on page 2. For example, the balance of account 110 Cash at Bank is $13,346 debit. Write \"Opening Balance\" in the \"Details\" column, and place $13,346 in the \"Debit\" balance column. B. Open all subsidiary ledger accounts for accounts receivable and accounts payable by inserting the opening balances as at 1 August as shown in the schedule of accounts receivable and accounts payable on page 3. Insert the opening inventory balances into the inventory cards. Note: For the general ledger, accounts receivable subsidiary ledger and accounts payable subsidiary ledgers, all accounts have normal balances C. Record the transactions for August in the appropriate journals provided (narrations are not required). D. Post daily to the accounts receivable and accounts payable subsidiary ledgers. Post daily from the general journal. All other amounts will be posted at the end of the month. Note: For posting reference purposes, use the journal page names and numbers. For example, when posting from the sales journal the reference will be \"SJ9\". E. Total all columns of the special journals. Post from the special journals to the general ledger. F. Prepare schedules of Accounts Receivable and Accounts Payable. Check that the total of the Schedule of Accounts Receivable equals the Accounts Receivable Control account in the general ledger and that the Schedule of Accounts Payable equals the Accounts Payable account in the general ledger. G. Use the worksheet provided to prepare an Unadjusted Trial Balance as at 31 August. Check figures for this stage of the assignment are as follows: Total of the Cash column in the Cash Receipts Journal - $22211.30. Cash at Bank account balance - Dr $8976.30. Inventory account balance - $20050. GST Clearing account balance - Dr $1200.42. Unadjusted trial balance from worksheet - $110114.00. Note: If any of your figures do not match those above, you have made an error which you will need to find and correct. Page 5 of 6 H. Using the following information record the necessary adjusting journal entries at 31 August in the general journal. Post these to the general ledger. 1. Insurance Louisa paid 6 months of insurance as noted in transaction on August 1. 2. Depreciation On August 1, Louisa purchased a delivery van. It has a useful life of 10 years and a residual value of $6,000. The vehicle is depreciated using the straight-line method. Calculate depreciation for one month. 3. Accrued Wages Wages owing at 31 August totalled $880. 4. Superannuation Superannuation contributions accrued for August total $871. 5. Office Supplies A stocktake of office supplies was performed on August 31. It was noted that $650 of supplies remain. 6. Bad Debts An assessment of bad and doubtful debts at August 31 showed an increase in the amount falling into this category. Louisa has decided to increase the Allowance for Doubtful Debts to 5% of the accounts receivable balance at August 31. 7. Rent Rent of $4,500 is paid every quarter, and was last paid on the 1 st of July. I. Record these adjustments in the adjustments column of the worksheet. J. Complete the worksheet. K. Record all closing entries in the general journal and post them to the general ledger. L. Prepare a Post-closing Trial Balance as at 31 August. M. Prepare the Income Statement (functional format), Statement of Changes in Equity, and Classified Balance Sheet. Page 6 of 6