Part 2: Preparing Financial Statements (10%) After you have recorded all David's transactions (Part 1) in a worksheet, you realise that the worksheet may not be the best way to present the information to David. You decide to draw up an Income Statement and a Balance Sheet from your worksheet data instead, to concisely summarise the financial performance and the financial position of MicroSystems. You arrange to meet with David for another coffee, armed with your pre-prepared statements and ready to answer questions with your knowledge of accounting so far. List of Accounts and Balances (from Part 1): Account Accounts Payable Accounts Receivable Accrued Expenses Accum. Depn-Fixtures & Fittings Accum. Depn-Motor Vehicles Advertising Expense Allowance for Doubtful Debts Bank Overdraft Cleaning Expense Balance $ 27 000 34 280 2 750 (125) (250) 2 800 (1 714) 520 140 Contributed Capital Cost of Goods Sold Depreciation Expense Doubtful Debts Expense 24 000 30 650 375 1714 (7 200) Drawings Electricity Expense Fixtures & Fittings Insurance Expense Interest Expense Interest Payable Inventory Loan Maintenance & Repairs Expense Motor Vehicles Office Equipment Prepaid Insurance Prepaid Rent Rent Expense Sales Telecommunications Expense Training Expense Wages Expense Wages Payable 1.900 12 000 350 300 300 21 860 60 000 230 24 000 890 3 850 25 000 5 000 58 750 850 120 2 850 950 REQUIREMENTS for Part 2 (100 marks total): a) Prepare an Income Statement (Statement of Financial Performance) for the month ending 31 July 2021. 20 marks b) Prepare a classified Balance Sheet (Statement of Financial Position) in the vertical format using the proprietary approach, as at 31 July 2021. 35 marks c) Answer fifteen (15) multiple choice questions (MCQ) on the material from Weeks 1-5 (Questions will be visible upon opening FLO quiz). Technical notes and hints for Part 2: Preparation of your work 45 marks You should have your financial statements, for requirements (a) and (b), prepared in Microsoft Word (or similar) BEFORE attempting the FLO Quiz for Part 2. Submission of your work The FLO Quiz for Part 2 may only be accessed ONCE between the opening date and the due date and there is a time limit of 2 hours (120 minutes) from when it is opened to complete and submit your work Once you open the FLO Quiz for Part 2, you should copy your pre-prepared statements into the appropriate questions for requirements (a) and (b), then proceed to answer the MCQ questions for requirement (c). Please submit your work when you are finished, otherwise it will automatically submit when the time limit expires. If you require extra time due to a Disability Access Plan, it is important to contact the topic coordinator BEFORE attempting the FLO Quiz If you do not submit the FLO Quiz before the due date, it will become unavailable. If you need to request an extension, you MUST apply using the assignment extension tool BEFORE the due date and time to prevent this from happening. If you are making a late submission (with or without an approved extension) you MUST contact the Topic Coordinator so that you can still access the FLO Quiz for submission. Entering data in the FLO Quiz Copy your pre-prepared statements into the relevant questions in the FLO Quiz Amend your formatting if necessary, so that the statements are readable in the FLO Quiz For multiple choice questions, select the best response from the options provided. Viewing your feedback On the return date (Wednesday 18 May), you will be able to view your marked work and feedback. Correct financial statements will be provided on the return date, and you must use these for your analysis in Part 3. The correct responses to the multiple-choice questions will be shown, along with brief feedback regarding the choices. Please refer to this in the first instance. If you still do not understand why your answer was incorrect, please contact the Topic Coordinator. Page 4 of 4