Performance Task 4

4.A

Hint

Below is an example of how a journal entry is corrected. In this example, electricity paid for March was $820; however, it was incorrectly recorded as $720.

Example:

Date	Details	Debit	Credit
31/05/XX	Cash		$100.00
31/05/XX	Electricity	$100.00
31/05/XX	Memo electricity adjustment for May incorrectly recorded as $720.00 instead of $820.

Scenario

You are working as an accountant for a small business called XYZ Corporation. As part of your responsibilities, you are tasked with maintaining the financial records and ensuring their accuracy.

While reviewing the financial transactions for the month of May 20XX, you come across an error in the rent entry. The rent for May has been recorded as $650, but upon further investigation, you discover that the actual rent amount should have been $560.

Instructions

Complete the general journal below to rectify the error made when recording rent for May.

Date	Details	Debit	Credit

Evidence required

Rectified general journal.

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4.B

Scenario

Review the cash journal and bank statement below. Then, answer the questions that follow.

Cash Journal | Cash at Bank

Date	Cheque	Details	Debit	Credit
14/01/XX	770981	PR Smith & Sons		$28.95
16/01/XX	770982	Car Works		$257.95
16/01/XX	770983	Office Supply Co		$45.50
16/01/XX	Deposit	Cash and cheques	$750.25
18/01/XX	770984	Corner Service Centre		$135.00

Bank Statement

Date	Description	Debit	Credit	Balance
14/01/XX	Opening Balance			$17,025.46
16/01/XX	Your Cheque 770982	$257.95		$16,767.51
16/01/XX	Agency Deposit		$750.25	$17,517.76
16/01/XX	Direct Credit Dolling		$128.98	$17,646.74
18/01/XX	Your Cheque 770984	$135.00		$17,511.74
18/01/XX	Your Cheque 770983	$45.50		$17,466.24
18/01/XX	Closing balance			$17,466.24

Instructions

You need to reconcile the cash journal and bank statement. Identify and list the differences between the journal and the statement.

Evidence required

A list of the differences in the space provided

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4.C

Hint

Below is an example of how a journal entry is corrected when items have been posted to the wrong journal. In this example, on 31 May 20XX, you posted a journal for bank fees of $100. The journal was posted to the stationery expense account instead of the bank fees account. The correction is shown:

Example:

Date	Details	Debit	Credit
31/05/XX	Stationery expense		$100.00
31/05/XX	Bank fees	$100.00
31/05/XX	Correction to bank fees posted as stationery expense.

Scenario

While preparing financial statements, you notice the electricity account has been used instead of the Rent account for the sum of $750.00.

Complete the general journal below to make the relevant correction.

Date	Details	Debit	Credit

Evidence required

Rectified general journal.

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4.D

Hint

If you need help with Excel formulas to complete this task, please access the FNSACC421 Tutor Assist_Performance Task 4.pdf.

Document required

You need to demonstrate how you use the features and functions of digital technologies to access, record, store, organise and compile data. We have prepared templates for you to use.

Download and save the Bobs Horticultural_Template.xlsxfile to your device using the naming convention: Bobs Financials 30-06-XX_Your Name; for example, Bobs Financials 30-06-XX_Jo Green.

Scenario

You are working as an accountant at Bobs Horticultural Service, a small business that specialises in providing mowing and gardening services to residential and commercial clients. The company, owned by Bob, has been operating successfully for a few years, and Bob wants to assess the financial performance of the business.

Bob has asked you to prepare a series of financial reports to provide a clear picture of the company's financial position and profitability. He needs a trial balance, profit and loss statement, and balance sheet for the period ending 30 June 20XX.

Complete the Bobs Horticultural spreadsheet (template) while following the instructions.

Instructions

Step 1: Trial Balance

Prepare a Trial Balance for the business, using the following transactions:

Transaction type	Details
Assets	Cash: $12,745 Accounts receivable: $4,590 Inventory: $270 Mowing equipment: $28,950
Liabilities	Accounts payable: $10,980 Bank overdraft: $1,200
Equity	Owner capital: $25,300 Owner drawing: $1,800
Revenue	Mowing revenue: $12,375
Expenses	Mulch: $650 Advertising: $850

• Open the Excel spreadsheet and locate the worksheet labelled 'Trial Balance'.
• Refer to the given transactions and enter the corresponding debit or credit amounts in the appropriate columns for each account category (Assets, Liabilities, Equity, Revenue, and Expenses) within the trial balance.
• Ensure that the total debits equal the total credits at the bottom of the Trial Balance. Double-check your entries for accuracy.

Step 2: Profit and Loss Statement

Use the Trial Balance you completed to prepare a Profit and Loss Statement for the business.

• Access the worksheet labelled 'Profit and Loss Statement'.
• Enter the revenue amount under the "Revenue" section and the cost of goods sold under the "Cost of goods sold" section.
• Calculate the gross profit by subtracting the cost of goods sold from the revenue.
• Record any operating expenses, such as advertising, in the "Operating expenses" section.
• Calculate the net profit/loss by subtracting the total operating expenses from the gross profit.

Step 3: Balance Sheet

Use the information from the Trial Balance to prepare a Balance Sheet.

• Access the worksheet labelled 'Balance Sheet'.
• List the assets and their respective values under the "Assets" section.
• Enter the liabilities and their corresponding amounts under the "Liabilities" section.
• Include the equity items under the "Equity" section. Calculate the total equity by summing up these values.
• Verify that the sum of total assets equals the sum of total liabilities plus total equity.

Save the completed Excel file.

Submission requirements

The uploaded completed financial report spreadsheet for Bobs Horticultural Service, including:

• Trial balance
• Profit and loss statement
• Balance sheet