TO FROM DATE 30 June 20XX SUBJECT Riskco June 20XX accrual and other journals MESSAGE Dear John, I hope this email finds you well At Riskco we use accrual journals to make sure that our revenue and expenses are allocated the right period Your task is to ensure this occurs You will need spreadsheet software for this task The audit fees incurred by Riskco for 30 06 20XX are $2,500 I would like this accrual journal to be processed at the end of 30 06 20XX Risk management fee revenue invoiced on the 30 06 20XX for $4,500 for Wana for risk management services completed on the 30 06 20XX The customer has not yet paid the account The manager, Joanna, mentioned that they would like the transaction to be recognised 30 06 20XX as an accrual journal Don't forget that we should create the risk management revenue and audit fee journals as reversing journals The journals are to be reversed at the beginning of the next financial year 30 06 20XX $10,000 of additional funds was transferred from Wamco into the Wealth Bank account (this journal is not an accrual journal and is a non reversing journal) Please use the enclosed Riskco chart of accounts to find the correct account codes Please disregard GST for this task Once you have completed the journals, I would like you to post the entries to the relevant ledgers for each journal Please use the information from the Riskco trial balance and chart of accounts to assist you Once you have completed the ledgers for the journals, please update the trial balance as at 30 06 20XX to reflect the accrual and non accrual journals that you have created Thank you and regards, Bob Banks CFO WAMco Phone (02) 2222 2222 Riskco Chart of Accounts Code Category Account 6 1000 Current assets Current assets 6 1001 Assets current Cash at Bank Wealth Bank 6 1002 Assets current Bada Cash Management Account 6 1002 Assets current Petty cash 6 1003 Assets current Accounts receivable 6 2000 Fixed assets Fixed assets 6 2001 Assets non current Fixed assets 6 2002 Assets non current Rental bond 7 0000 Current liabilities Current liabilities 7 0001 Current liabilities GST claimable 7 0002 Current liabilities GST payable 7 0003 Current liabilities Accounts payable 7 0004 Current liabilities Super guarantee payable 7 0005 Current liabilities Prepaid risk consultancy fees 7 0006 Current liabilities Audit fees payable 8 0000 Owners' equity Owners' equity 8 0001 Owners' equity Owners' equity WAMco 9 0000 Revenue Revenue 9 0001 Revenue Risk consultancy revenue 10 0000 Expenses Expenses 10 0001 Expenses Marketing expenses 10 0002 Expenses Office cleaning 10 0003 Expenses Wages expense 10 0004 Expenses Super guarantee expense 10 0005 Expenses Telephone expense 10 0006 Expenses Subscriptions 10 0007 Expenses IT expenses 10 0008 Expenses Insurance expense 10 0009 Expenses PAYG salaries expense 10 0010 Expenses Rental expense 10 0011 Expenses Stationery 10 0012 Expenses Miscellaneous Amenities 10 0013 Expenses Audit fees Riskco 30 June 20XX Trial Balance Pre accrual Journals Category Debit Credit Cash at Bank Wealth Bank $12,525 16 Bada Cash Management Account $80,000 00 Petty cash $600 00 Accounts receivable $7,150 00 Fixed assets $163,024 00 Rental bond $6,000 00 GST claimable $1,617 91 GST payable $1,200 00 Accounts payable $3,842 90 Super guarantee payable $2,786 67 Owners' Equity WAMco $299,626 00 Risk consultancy revenue $12,000 00 Marketing expenses $1,318 18 Office cleaning $240 00 Wages expense $21,759 34 Super guarantee expense $2,786 67 Telephone expense $587 10 Subscriptions $490 91 IT expenses $6,400 00 Insurance expense $2,700 00 PAYG salaries expense $7,574 00 Rental expense $4,364 00 Stationery $250 00 Staff amenities $68 30 Total $319,455 57 $319,455 57 Please complete the following three steps using the tables below step 1 three journals using the above information RISKCO JOURNALS Fill in the relevant details in the tables Then, document if reversal is required by inserting 'Yes' or 'No' in the appropriate column If 'Yes', insert the date for reversal if 'No', insert 'N A' Risk Management Revenue Accural Journal Date Account Code Account Name Description Debit Credit Reversal Reversal Date Audit Fee Accrual Journal Date Account Code Account Name Description Debit Credit Reversal Reversal Date Transfer of Funds Journal Date Account Code Account Name Description Debit Credit Reversal Reversal Date Step 2 Complete the ledgers using journals from step 1 RISKCO LEDGERS Accounts Receivable Ledger June 20XX Date Details Debit Credit Balance 01 06 20XX Opening balance $ 6,000 00 03 06 20XX Risk management fees for Rima Tais June 20XX $ 1,000 000 $ 7,000 00 10 06 20XX Rima Tais additional risk management for June 20XX $ 150 000 $ 7,150 00 30 06 20XX Closing balance Risk Management Revenue Ledger June 20XX Date Details Debit Credit Balance 01 06 20XX Opening balance $ 10,850 00 03 06 20XX Risk management fees for Rima Tais June 20XX $ 1,000 000 $ 11,850 00 10 06 20XX Rima Tais additional risk management for June $ 150 000 $ 7,150 00 30 06 20XX Closing balance Audit Fees Payable Ledger 30 June 20XX Date Details Debit Credit Balance 01 06 20XX Opening balance $0 00 30 06 20XX Closing balance $ 2,500 00 Audit Fees Expense Ledger Date Details Debit Credit Balance 01 06 20XX Opening balance $0 00 30 06 20XX Closing balance $ 2,500 00 Cash at Bank Ledger 30 June 20XX Wealth Bank Date Details Debit Credit Balance 01 06 20XX Opening balance $ 35,560 12 03 06 20XX Stationery purchase Xco Stationery $ 110 000 $ 35,450 12 15 06 20XX Electricity expense Banaelect $ 323 230 $ 35,126 89 17 06 20XX Risk revenue May 20XX Abaam Pty Ltd $ 5,000 000 $40,126 89 20 06 20XX Salary and wages staff June 20SXX $ 5,619 230 $ 34,507 66 25 06 20XX Rent June $ 4,560 230 $ 29,947 43 28 06 20XX Consultant fees Becon June 20XX $ 7,850 000 $ 22,097 43 29 06 20XX IT from IT World $ 9,572 270 $ 12,525 16 30 06 20XX Closing balance $ 22,525 16 Riskco WAMco Owners' Equity as at 30 June 20XX Date Details Debit Credit Balance 01 06 20XX Opening balance $299,626 00 30 06 20XX Closing balance Step 3 Complete the trial balance using the financial information from step 2 RISKCO TRIAL BALANCE Riskco Trial Balance Post Accrual Journals 30 June 20XX Category Debit Credit Cash at Bank Wealth Bank Bada Cash Management Account Petty cash Accounts receivable Fixed assets Rental bond GST claiimable GST payable Accounts payable Super guarantee payable Audit fees payable Owners' equity WAMco Risk consultancy revenue Marekting expenses Office cleaning Wages expense Audit fees payable Super guarrantee expense Telephone expense Subscriptions IT expenses Insurance expense PAYG salaries expense Rental expense Stationery Staff amenities Total

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TO: FROM: DATE: 30 June 20XX SUBJECT: Riskco June 20XX accrual and other journals MESSAGE Dear John, I hope this email finds you well. At

TO:
FROM:
DATE:	30 June 20XX
SUBJECT:	Riskco June 20XX accrual and other journals
MESSAGE
Dear John, I hope this email finds you well. At Riskco we use accrual journals to make sure that our revenue and expenses are allocated the right period. Your task is to ensure this occurs. You will need spreadsheet software for this task: The audit fees incurred by Riskco for 30/06/20XX are $2,500. I would like this accrual journal to be processed at the end of 30/06/20XX. Risk management fee revenue invoiced on the 30/06/20XX for $4,500 for Wana for risk management services completed on the 30/06/20XX. The customer has not yet paid the account. The manager, Joanna, mentioned that they would like the transaction to be recognised 30/06/20XX as an accrual journal. Don't forget that we should create the risk management revenue and audit fee journals as reversing journals. The journals are to be reversed at the beginning of the next financial year. 30/06/20XX $10,000 of additional funds was transferred from Wamco into the Wealth Bank account (this journal is not an accrual journal and is a non-reversing journal). Please use the enclosed Riskco chart of accounts to find the correct account codes. Please disregard GST for this task. Once you have completed the journals, I would like you to post the entries to the relevant ledgers for each journal. Please use the information from the Riskco trial balance and chart of accounts to assist you. Once you have completed the ledgers for the journals, please update the trial balance as at 30/06/20XX to reflect the accrual and non-accrual journals that you have created. Thank you and regards, Bob Banks CFO WAMco Phone: (02) 2222 2222

Riskco Chart of Accounts

Code	Category	Account
6-1000	Current assets	Current assets
6-1001	Assets current	Cash at Bank Wealth Bank
6-1002	Assets current	Bada Cash Management Account
6-1002	Assets current	Petty cash
6-1003	Assets current	Accounts receivable
6-2000	Fixed assets	Fixed assets
6-2001	Assets non-current	Fixed assets
6-2002	Assets non-current	Rental bond
7-0000	Current liabilities	Current liabilities
7-0001	Current liabilities	GST claimable
7-0002	Current liabilities	GST payable
7-0003	Current liabilities	Accounts payable
7-0004	Current liabilities	Super guarantee payable
7-0005	Current liabilities	Prepaid risk consultancy fees
7-0006	Current liabilities	Audit fees payable
8-0000	Owners' equity	Owners' equity
8-0001	Owners' equity	Owners' equity WAMco
9-0000	Revenue	Revenue
9-0001	Revenue	Risk consultancy revenue
10-0000	Expenses	Expenses
10-0001	Expenses	Marketing expenses
10-0002	Expenses	Office cleaning
10-0003	Expenses	Wages expense
10-0004	Expenses	Super guarantee expense
10-0005	Expenses	Telephone expense
10-0006	Expenses	Subscriptions
10-0007	Expenses	IT expenses
10-0008	Expenses	Insurance expense
10-0009	Expenses	PAYG salaries expense
10-0010	Expenses	Rental expense
10-0011	Expenses	Stationery
10-0012	Expenses	Miscellaneous / Amenities
10-0013	Expenses	Audit fees

Riskco 30 June 20XX Trial Balance Pre-accrual Journals
Category	Debit	Credit
Cash at Bank Wealth Bank	$12,525.16
Bada Cash Management Account	$80,000.00
Petty cash	$600.00
Accounts receivable	$7,150.00
Fixed assets	$163,024.00
Rental bond	$6,000.00
GST claimable	$1,617.91
GST payable		$1,200.00
Accounts payable		$3,842.90
Super guarantee payable		$2,786.67
Owners' Equity WAMco		$299,626.00
Risk consultancy revenue		$12,000.00
Marketing expenses	$1,318.18
Office cleaning	$240.00
Wages expense	$21,759.34
Super guarantee expense	$2,786.67
Telephone expense	$587.10
Subscriptions	$490.91
IT expenses	$6,400.00
Insurance expense	$2,700.00
PAYG salaries expense	$7,574.00
Rental expense	$4,364.00
Stationery	$250.00
Staff amenities	$68.30
Total	$319,455.57	$319,455.57

Please complete the following three steps using the tables below:

step 1: three journals using the above information

RISKCO JOURNALS
Fill in the relevant details in the tables. Then, document if reversal is required by inserting 'Yes' or 'No' in the appropriate column. If 'Yes', insert the date for reversal; if 'No', insert 'N/A'.
Risk Management Revenue Accural Journal
Date	Account Code	Account Name	Description	Debit	Credit


Reversal		Reversal Date

Audit Fee Accrual Journal
Date	Account Code	Account Name	Description	Debit	Credit


Reversal		Reversal Date

Transfer of Funds Journal
Date	Account Code	Account Name	Description	Debit	Credit


Reversal		Reversal Date

Step 2 : Complete the ledgers using journals from step 1

RISKCO LEDGERS
Accounts Receivable Ledger June 20XX
Date	Details	Debit	Credit	Balance
01/06/20XX	Opening balance			$ 6,000.00
03/06/20XX	Risk management fees for Rima Tais June 20XX	$ 1,000.000		$ 7,000.00
10/06/20XX	Rima Tais additional risk management for June 20XX	$ 150.000		$ 7,150.00
30/06/20XX
Closing balance

Risk Management Revenue Ledger June 20XX
Date	Details	Debit	Credit	Balance
01/06/20XX	Opening balance			$ 10,850.00
03/06/20XX	Risk management fees for Rima Tais June 20XX		$ 1,000.000	$ 11,850.00
10/06/20XX	Rima Tais additional risk management for June		$ 150.000	$ 7,150.00
30/06/20XX
Closing balance

Audit Fees Payable Ledger 30 June 20XX
Date	Details	Debit	Credit	Balance
01/06/20XX	Opening balance			$0.00
30/06/20XX
Closing balance	$ 2,500.00

Audit Fees Expense Ledger
Date	Details	Debit	Credit	Balance
01/06/20XX	Opening balance			$0.00
30/06/20XX
Closing balance	$ 2,500.00

Cash at Bank Ledger 30 June 20XX Wealth Bank
Date	Details	Debit	Credit	Balance
01/06/20XX	Opening balance			$ 35,560.12
03/06/20XX	Stationery purchase Xco Stationery		$ 110.000	$ 35,450.12
15/06/20XX	Electricity expense Banaelect		$ 323.230	$ 35,126.89
17/06/20XX	Risk revenue May 20XX Abaam Pty Ltd	$ 5,000.000		$40,126.89
20/06/20XX	Salary and wages staff June 20SXX		$ 5,619.230	$ 34,507.66
25/06/20XX	Rent June		$ 4,560.230	$ 29,947.43
28/06/20XX	Consultant fees Becon June 20XX		$ 7,850.000	$ 22,097.43
29/06/20XX	IT from IT World		$ 9,572.270	$ 12,525.16
30/06/20XX
Closing balance	$ 22,525.16

Riskco WAMco Owners' Equity as at 30 June 20XX
Date	Details	Debit	Credit	Balance
01/06/20XX	Opening balance			$299,626.00
30/06/20XX
Closing balance

Step 3:

Complete the trial balance using the financial information from step 2

RISKCO TRIAL BALANCE
Riskco Trial Balance Post Accrual Journals 30 June 20XX
Category	Debit	Credit
Cash at Bank Wealth Bank
Bada Cash Management Account
Petty cash
Accounts receivable
Fixed assets
Rental bond
GST claiimable
GST payable
Accounts payable
Super guarantee payable
Audit fees payable
Owners' equity WAMco
Risk consultancy revenue
Marekting expenses
Office cleaning
Wages expense
Audit fees payable
Super guarrantee expense
Telephone expense
Subscriptions
IT expenses
Insurance expense
PAYG salaries expense
Rental expense
Stationery
Staff amenities
Total