The description is shown as the following photo, which require me to answer the accounting report questions
For this assignment, you are tasked to analyse two alternatives for the company to choose from when making a strategic decision. To assist in the comparative analysis, you will need to prepare a 10-column worksheet, Income Statements, Closing entries and Balance sheets. Moscato Vitis is a wine business trading in Australia. It's dated back to 1965 when it started as a humble family business supplying mainly Cronulla. Over the years, it has grown exponentially becoming one of the main distributors for wine retailers in New South Wales (NSW). As part of its growth strategy, the business is now considering expanding its market to Victoria (VIC). As a professional accountant, you are being tasked to prepare reports outlining the possible outcomes and risks if the company is to remain at its current operation scale or go ahead with the expansion (stay in NSW or expand to VIC). The unadjusted Trial Balance at end of 30 June 2020 is as such: Moscato Vitis Unadjusted Trial Balance As at 30 June 2020 Debits Credits Cash 47,340 Accounts Receivable 99,400 Inventory 239,800 Prepaid Insurance (12m) 52,800 Land 70,000 Building 350,000 Acc. Depreciation - Building 175,000 Equipment S 80,000 Acc. Depreciation - Equipment 48,000 Accounts Payable 143,940 Salary Payable 50,650 Unearned Revenue 113,650 Capital 329,520 Sales Revenue 478,500 Cost of Sales 263,200 Salary Expense 49,000 Telephone/internet Expense 25,870 Transportation Expenses 34,200 Miscellaneous Expense 27,650 1,339,260 $ 1,339,260When reviewing the end of financial year report, you discovered the following items need attention. 1. Employee salaries owed but not recorded, $5,500. 2. Unearned revenue now earned, $30,000. 3. One of the owners has invested $95,000 in forms of $37,000 cash and a parcel of land valued at $58,000 into the business. 4. Depreciations for the year are not recorded. Annual rates for both assets are 10% straight line. 5. Insurance purchased on 15 of March 2020 was partially consumed. The company is also wary about possible interruption to demand e.g. due to pandemic. For expansion, the company will need to hire more employees and more frequent delivery interstate. This will increase operational cost in form of labour and land transportation which are estimated around 50% and 30% respectively. The company is also considering a more environmental friendly approach by using renewable packaging and cutting off plastic usage and waste. This will increase COS by 15%. Sales revenue is estimated to increase 13% every year however, long-term profit cannot be guaranteed if the company go ahead with the expansion without improvement on its revenue or expenditure. The silver lining with this strategy is that the HR department is planning to hire more female workers and also to convert more staffs into permanent basis. The company also believes that the risk will pay off in the future once the operation has stabilised. Please write your responses on a WORD document. Upload to the link on Moodle.Requirement 1.A. Fill the 10-column worksheet Moscato Vitis 10-Column worksheet As at 30 June 2020 Unadjusted Trial Balance Adjusting Entry Adjusted Trial Balance Income Statement Balance Sheet Dr Cr Dr Cr Dr Cr Dr Cr Dr Cr Cash $ 47,340 Account Receivable $ 99,400 Inventory $ 239,800 Prepaid Insurance (12m) $ 52,800 Land $ 70,000 Building $ 350,000 Acc. Dep. Building $ 175,000 Equipment $ 80,000 Acc. Dep- Equipment $ 48,000 Accounts Payable $ 143,940 Salary Payable $ 50,650 Unearned Revenue $ 113,650 Capital $ 329,520 Sales Revenue $ 478,500 Cost of Sales $ 263,200 Salary Expense $ 49,000 Telephone/Internet Exp. $ 25,870 Transportation Expense $ 34,200 Miscellaneous Expense $ 27,650 $ 1,339,260 |$ 1,339,260
