Question
Part 1There are four financial statements - balance sheet, income statement,statement of cash flows, and statement of changes in equity. Briefly describe the information conveyed
Part 1There are four financial statements - balance sheet, income statement,statement of cash flows, and statement of changes in equity. Briefly describe the information conveyed by the balance sheet relative to that conveyed by the income statement. (3 Marks)
Part 2 - End of Period Adjustments and Closings and Financial Statements (17 Marks)
The unadjusted trial balance of ABC's Financial Consultant, contains the following account balances as at 30 June 2017:
ABC FINACIAL CONSULTAT Unadjusted Trial Balance, as at 30 June 2017
Account Debit Credit
Cash at Bank $5200
Accounts Receivable 9260
GST Receivable 920
Office Supplies 1140
Land 60000
Building 152000
Accumulated Depreciation - Building 64000
Office Equipment 23400
Accumulated Depreciation - Office Equipment 6420
Accounts Payable 7960
Unearned Consulting Fees 1560
GST Payable 2000
Mortgage Payable 88600
C. Delaney, Capital 71490
C. Delaney, Drawings 52780
Consulting Fees Revenue 156860
Insurance Expense 1660
Salaries Expense 87940
Electricity Expense 760
Interest Expense 2090
Telecommunications Expense 1740
Total $398 890$398 890
The following additional account titles are included in the chart of accounts:
Prepaid Insurance
Telecommunications Expense Payable
Office Supplies Expense
Depreciation Expense - Buildings
Depreciation Expense - Office Equipment
Interest Payable
Salaries Payable
The following information is also available: 1. A physical count of office supplies reveals that supplies totalling $420 are on hand at 30 June.
2. The balance in the Unearned Consulting Fees account includes $1200 earned for services rendered in the last week of June.
3. Estimated depreciation on the office equipment is $2140. Depreciation on the building is $8760.
4. A 12-month insurance policy was purchased on 1 April for $780 plus GST.
5. The June monthly mortgage payment of $900 has not been paid or recorded. In each payment, $220 is attributable to interest.
6. The June telecommunications costs for $320 are unrecorded. No tax invoice has been received.
7. Salaries of $980 were owing to employees at 30 June 2017.
Required:
1. Prepare 6-column worksheet for the year ended 30 June 2017. Use the same format of the column worksheet provided.(8 marks)
2. Prepare the income statement, balance sheet (Narrative Format) and statement of changes in equity (7 marks)
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