Required: Based on the above information: 1) Complete the whole accounting cycle for the company (i.e. Journalize the transactions in the journal, prepare adjusted Trial Balance, Income Statement, Statement of Equity and Balance Sheet.) Please ensure that the given answer should be in the form of report and must include discussion on the following: 2) What is an accounting cycle? Is every company required to complete it? 3) Explain the purpose, content, format and practical applications of all the financial statements generated as a result of completing an accounting cycle? 4) What is the role of double entry system in the accounting cycle? 5) What is the role of ethics while an accounting cycle is being completed? 6) What support does the financial information generated by completing an accounting cycle provides to the management in their decision making? 7) Provide a recommendation whether using perpetual inventory system (currently being used) will be ideal for the company. Note: This task must be completed in a report format (word document) i.e. in your business report, you must include Executive Summary, Introduction, Main body, Recommendations and Conclusions. Harvard style reference must be used for both in-text referencing and reference list. Yolanda Renner is a small company named as Beautiful Mind Book (BMB) operating within a small suburb of NSW. The company is a retailer of books i.e. BMB buy books and sell them to the customers at a profit. It uses perpetual inventory system. The post-closing Trial Balance as of 31 March 20210f BMB along with some additional transactions that took place in the month of April is given below: Yolanda Renner runs a retailing book shop named Beautiful Mind Book. He purchases books and sell them to local customers to make a profit. The bookshop uses perpetual inventory system. The post-closing trial balance of Beautiful Mind Book at 31 March 2021 is presented below: Beautiful Mind Book Post-Closing Trial Balance 31-Mar-21 Debit Credit Cash 20,500 Accounts receivable 30,250 Inventory 44,670 Supplies 5,700 Equipment 134,000 Accumulated depreciation 28,000 Accounts payable 62,120 Bank loan 40,000 Owner's capital 105,000 total 235,120 235,120 In the month of April, the following transactions have taken place: Month Date Transactions April 1 Purchased books on account for $ 7,000 from ABD Pubishers, FOB shipping point. credit terms: 2/15, n/30. Beautiful Mind paid the transportation company $ 75 3 Sold books on account to Mary for $ 9,100 The cost of the books was $ 4,800 credit terms: 2/10, n/30. 8 Received $ 150 credit for books returned to ABD Publishers. 12 Received the payment from Mary. 14 Paid ABD outstanding amount from transaction on 1 April. 22 Collected $ 10,250 from customers on account. 23 Paid $ 5,000 to suppliers on credit 24 Sold books for cash $ 3,200 The cost of the books sold was $ 2,200 25 Paid freight out of $ 50 30 Paid shop rent of $ 1,500 30 A stock take was carried out and found supplies on hand was $ 1,200 30 Beautiful Mind Book adopts straight-line depreciation method. The depreciation rate is 10% per year. 30 interest of $ 1,200 was paid for the bank loan
