Scenario:

On 1 Oct 2018, Andrew Brown opened Nundle Services, a small business offering maintenance services in New South Wales. During the month of October, the business incurred the following transactions: 2 Oct, Andrew invested $50,000 cash in the business, which is organised as a sole trader. 3 Oct, got a 5 year loan for $30,000 from the ANZ bank, interest is 5% pa. 4 Oct, purchased and paid for equipment worth $51,000. Monthly depreciation will be $850. 5 Oct, purchased supplies for $6,500 on credit. 8 Oct, paid Oct office rent of $7,200. 10 Oct, Brown withdrew $2,000 for personal purposes. 17 Oct, paid an invoice of $4,500 for advertising 25 Oct, paid one year of insurance for $5,600 Additional information at 31 Oct: Supplies on hand was $3,100 Services revenue of $22,500 must be accrued Monthly payroll is $11,500 and paid once a month on Friday after the month ended. 31 Oct 2018 was on Wednesday. Some customers advanced $10,500 for maintenance services to be provided next month but this amount hasnt been recorded.

Requirements:

- Provide journal entries for all transactions that occurred during October 2018. (8 marks) - Open T-accounts and post all journal entries to the T-accounts. Total all of the T-accounts to determine their balances at the end of the month.

- Provide your handwritten solution scan or use your phone to copy and paste its image into your assignment. You can use a free scanning app such as Camscanner, OfficeLens, or Google Drive. (10 marks) - Based on balances from the T-accounts, prepare the trial balance by using an Excel spreadsheet. Present your answers in a normal view, showing columns and rows. (4 marks) - What are temporary and permanent accounts? From your trial balance, choose four permanent and four temporary accounts. (4 marks) - From your trial balance, choose two accounts with normal debit balances and two accounts with normal credit balances. (2 marks) - What are adjusting entries? Why do we have to do adjusting entries? Provide all adjusting entries for Nundle Services in October. (9 marks) - Using your trial balance in the preceding question and Excel spreadsheet, prepare the ten column worksheet for the month ended 31 October. In the spreadsheet, you are required to have a data section separated from a report section. Use an IF function for Profit or Loss. Present your answers in both normal and formula views, showing columns and rows. (10 marks) - Using the spreadsheet, prepare three financial reports. Present your answers in both normal and formula views. (9 marks) - Calculate and evaluate the firms current and debt ratios. (4 marks)