The purpose of this assignment is for you to demonstrate your ability to record business transactions and then prepare a properly formatted income statement and balance sheet. The one additional requirement is that you answer the questions that you find below. Questions to be answer 1. What is the company's ending Cash balance? What is the company's ending Equity? Why is cash not equal to equity? 2. What is the company's net income for the period? 3. If you had to repay your creditors today, could you? Explain. 4. The company made a small amount of net income over the month. Explain why the equity actually decreased over the period. 5. You have recorded journal entries for the period of a month. If you were told that the business license in T12 was a annual expense, would this impact the reported net income? Explain why or why not. Marking Scheme Knowledge and Understanding Demonstrates thorough knowledge and understanding of course content. Through response to 5 questions, demonstrates a thorough understanding of course content. Total for Knowledge and Understanding 10 10 Communication Expresses and organizes ideas and information with a high degree of effectiveness. Financial statements prepared in the required form and with appropriate formatting. Answers to questions are written and presented in a professional manner. Total for Communication 8 2 10 Application Journal Entries Applies knowledge and skills in a familiar context with a high degree of effectiveness. Journal entries recorded properly in an organized fashion within the spreadsheet. Total for Application T1 Purchased $333 worth of office supplies with cash. T2 Issued a cheque for $50 for an ad in the local newspaper. T3 Received a bill from Staples for a desk, chair, and filing cabinet. The total bill is for $1,100 and is due in 30 days. T4 10 10 You were hired to do the bookkeeping for a local company. You did 9 hours of work and you charge $100 per hour. You expect to get paid next week. T5 You complete 6 hours of work and get paid right away. T6 The company makes a $100 donation to the United Way. T7 You receive a cheque for $400 from the client in T4. T8 You issue a cheque to Staples for the full amount owed. T9 T10 You paid Costco $120 for repairs on the company automobile. Performed an accounting service for Lebron and received $200 cash as payment. You didn't deposit the cash, instead you put it in your pocket to buy your groceries for the week. T11 Issued a cheque for $750 in payment of the rent for the month of October. T12 Received a bill from CPA, Ontario for a business license fee. You'll pay the $500 next month. T13 Put another advertisement in the local paper. You'll pay them the $65 next week.. T14 Performed $1,000 worth of accounting services and issued bill to client. T15 T16 You sell your old computer on craigslist for $100. You purchased the computer 4 years ago for $1,045. You purchase a new computer for $800 cash. Assignment 1A-BAF3M1 SVS The purpose of this assignment is for you to demonstrate your ability to record business transactions and then prepare a properly formatted income statement and balance sheet. The one additional requirement is that you answer the questions that you find below. Questions to be answer 1. What is the company's ending Cash balance? What is the company's ending Equity? Why is cash not equal to equity? 2. What is the company's net income for the period? 3. If you had to repay your creditors today, could you? Explain. 4. The company made a small amount of net income over the month. Explain why the equity actually decreased over the period. 5. You have recorded journal entries for the period of a month. If you were told that the business license in T12 was a annual expense, would this impact the reported net income? Explain why or why not. Marking Scheme Knowledge and Understanding Demonstrates thorough knowledge and understanding of course content. Through response to 5 questions, demonstrates a thorough understanding of course content. Total for Knowledge and Understanding Communication Expresses and organizes ideas and information with a high degree of effectiveness. Financial statements prepared in the required form and with appropriate formatting. 10 10 8 Answers to questions are written and presented in a professional manner. Total for Communication 10 20 Application Journal Entries Applies knowledge and skills in a familiar context with a high degree of effectiveness. Journal entries recorded properly in an organized fashion within the spreadsheet. Total for Application 10 10 T1 Purchased $333 worth of office supplies with cash. T2 Issued a cheque for $50 for an ad in the local newspaper. T3 Received a bill from Staples for a desk, chair, and filing cabinet. The total bill is for $1,100 and is due T4 You were hired to do the bookkeeping for a local company. You did 9 hours of work and you charge $ T5 You complete 6 hours of work and get paid right away. T6 The company makes a $100 donation to the United Way. T7 You receive a cheque for $400 from the client in T4. T8 You issue a cheque to Staples for the full amount owed. T9 T10 You paid Costco $120 for repairs on the company automobile. Performed an accounting service for Lebron and received $200 cash as payment. You didn't deposit t cash, instead you put it in your pocket to buy your groceries for the week. T11 Issued a cheque for $750 in payment of the rent for the month of October. T12 Received a bill from CPA, Ontario for a business license fee. You'll pay the $500 next month. T13 Put another advertisement in the local paper. You'll pay them the $65 next week.. T13 T14 T15 T16 Put another advertisement in the local paper. You'll pay them the $65 next week.. Performed $1,000 worth of accounting services and issued bill to client. You sell your old computer on craigslist for $100. You purchased the computer 4 years ago for $1,045 You purchase a new computer for $800 cash