THE ACCOUNTING SYSTEMS

This question will be answered in an Excel Spreadsheet, which is provided below.

(Note: for the purposes of the question, you may ignore tax implications)

Williams Accountants operates in Dunedin. It is owned and operated by Jane Williams. The opening balances of assets and liabilities as at 1 July 2022 are as listed on the worksheet in the Excel template provided below.

The Prepaid Insurance of $4,800 was for the period 1 July 2022 to 31 December 2022.

The following are transactions for July 2022:

1. An accounts receivable paid their account of $6,000.
2. The month's rent of $3,000 was paid.
3. Office supplies of $1,200 were purchased for cash.
4. Jane completed the financial statements for Mullen Ltd and invoiced them $3,600.
5. Jane paid the office cleaner, $2,000 for the month.
6. The Dunedin Bank was paid $100 for the month's interest.
7. Depreciation for the month is calculated using the straight-line method. The estimated useful life of the equipment is eight years at the end of which, it is expected to sell for $10,000.
8. Office supplies on hand at the end of the month totaled $1,400.
9. The insurance expense for the month was recognised.

Answer the linked Excel spreadsheet template file provided below:

https://stream.massey.ac.nz/pluginfile.php/4788612/question/questiontext/6073037/39/32713260/Q36_ID%20number_Surname.xls?time=1664838986772

1. Click above and download the template file.An Excel spreadsheet file should automatically download directly onto your computer.
2. Immediately rename and save the template in an easily accessible location i.e., your desktop. Use this naming convention: Q36_IDnumber_Surname.xls. You MUST ensure that the document will be saved correctly.
3. Enter your name and student ID in the space provided on the Excel spreadsheet (In rows 2 & 3 on SHEET 1).
4. Keep the Stream quiz open while you work in the spreadsheet.
5. Save the spreadsheet regularly as you answer - the autosave function will not work during this exam.
6. When you have finished answering Q36, do a final save and then upload your Excel file into the drop box below these instructions. You can drag and drop the file into the drop box. Or click the "Add" icon at the top left-hand corner of the drop box, then browse your files to select your Excel spreadsheet.
7. Once you have uploaded your spreadsheet, click the "Next" button under the drop box to move to the next question.

Required:

1. In SHEET 1: Calculate the opening balance of Capital.

(2 marks)

1. In SHEET 1: Use the accounting equation format worksheet, show the effect of the transactions on the accounting equation for the month of July 2022. Indicate a decrease in an account by adding a minus sign in front of the amount. Show all "Expenses" as reducing Owners Equity with a minus sign.

(12 marks)

1. In SHEET 2: Prepare a Statement of Changes in Equity for the month of July 2022