The comparative income statement for the financial year

PART B – PRACTICALQuestion 5: The comparative income statement for the financial yearended June 30 for Fiona Flamingo Farms is as follows:Fiona Flamingo Farms Comparative statement ofcomprehensive income For the years ended 30 JuneRequired:1. Perform horizontal analysis and vertical analysis (for 2016only) onthe income statement. In your answer please remember toindicate if it is an INCREASE or (DECREASE) and round yourfindings to ONE decimal place [e.g. -32.996% is -33.0% orminus 33.0% or (33.0%).2. Comment on the significant changes disclosed by thecomparative statement of comprehensive income.3. Prepare a statement of retained earnings for the year endedJune 30, 2016. (Retained earnings at July 1, 2015 were$58,000, dividends declared and paid during the financialyear were $37,000.4. Explain how profits for the year ended June 30, 2015 were$126,700 yet Retained Earnings at July 1, 2015 were only$58,000.Question 6: The comparative balance sheet for the financial year endedJune 30 for Radical Road Trips is as follows:A. Perform horizontal analysis and vertical analysis (for2016 only) on the comparative balance sheet. In your answerplease remember to indicate if it is an INCREASE or(DECREASE) and round your findings to ONE decimal place[e.g. -32.996% is -33.0% or minus 33.0% or (33.0%).B. Calculatethecurrentratiofor2016.C. Assuming credit sales for 2016 were $300,000 calculate thereceivables turnover ratio for 2016.D. Calculate the days in receivables ratio for 2016.E. Calculate the allowance ratio for2016.F. Comment on the significant changes disclosed by thecomparative balance sheet. In your analysis include:a. The main findings from the horizontal analysis and verticalanalysisb. An interpretation of what each of the ratios mean forRadical Road Trips.c. The advantages and limitations of each of the ratios.Question 7 : Carin owns and operates the Carin Consulting business. OnAugust 1, 2016 her ledger showed the following account balances (IgnoreGST).The following transactions occurred during August 2016:1. The owner contributed an additional $2,000 cash and equipmentvalued at $5,000 to the business.2. Purchased land for $260,000 by arranging a mortgage with thebank.3. Paid $1,500 cash to purchase a computer for the business.4. Purchased a motor vehicle for $36,000 by arranging a promissorynote with a lender.5. Paid $3,000 to creditor (Accounts Payable) for goods previouslypurchased in July.6. Paid $150 for a telephone bill that related to charges incurred duringJuly. An adjusting entry for $150 was made at the end of July toaccrue this telephone expense.7. Performed consulting services for a customer and received $6,000cash.8. Billed (invoiced) a client $9,000 for consulting services performedduring August.9. Received $4,000 cash from customers who had previously beenbilled (invoiced) for services performed during July.10.Received and paid an invoice for $2,000 relating to August’sadvertising expense.11.Distributed $7,000 cash dividends to the owner of thebusiness.12.Sold inventory on credit to a customer for $5,000. Theinventory cost $3,000 and was recorded using the perpetualinventory system.13.Received $1,000 cash for consulting services to be performedin September. The cash receipt was recorded as a liability.14.Received $2,000 cash for consulting services to be performedin September. The cash receipt was recorded as revenue.15.Purchased supplies on credit $700. The supplies purchasedwere recorded as an asset.16.Paid $1,200 for a 12-month insurance policy. The insurancewas recorded as an asset.17.Paid $6,000 cash for rent for August, September and October.The business recorded the rent as an expense.Required:A. Record the above transactions in a general journal using only theledger accounts given.B. Post to the ledger, (remembering first to enter the opening balances).Question 8: For each of the following independent situations and fromthe information below record the adjusting entry (and only theadjusting entry – do not record the original transaction or openingbalance) in the General Journal, being as precise with your account titlesas possible, e.g. not using “supplies” but “supplies expense” or “supplieson hand”. Please ignore GST. All calculations are to be worked out on amonthly (not daily) basis.Note: alternative versions of some of the questions are included. You areexpected to know how to record both as you may be examined on eitherthe question or the alternative version. Required: Record theAdjusting Entriesi.Ella Auditors is conducting the audit on Swan Productions. It isnormal practice not bill or invoice the client until the audit iscompleted. By the end of the financial year 43 hours have beenspent on the audit. The average rate is $370 per hour. Record theadjusting entry for Ella Auditors.(Alternative: record the adjusting entry for SwanProductions)ii.Jon Ltd. invested $40,000 in a term deposit at Murray River Bank on1 May 2016. Interest is received after one year and interest ratesare 6%. Record the adjusting entry for Jon Ltd. when their financialyear ends on 30 November 2016.(Alternative: record the adjusting entry for Murray RiverBank)iii.On 1 March 2016, Martin Ltd. accepts a $15,000, five percent, tenmonth note receivable. Record the adjusting entry for Martin Ltd.when their financial year ends on 30 June 2016.iv.At Ian Industries salaries are paid and recorded weekly at the end ofthe week late on a Saturday evening for all work performed up toand including Saturday evening. The weekly salary bill is $36,000for a six-day working week (Mon – Sat). Ian’s accounting periodends on Tuesday evening. Record the adjusting entry.v.Jenny borrowed $120,000 from Eastpac Bank on 1 February 2016.Interest is paid after six months and interest rates are 8%. Recordthe adjusting entry for Jenny on 30 April 2016.(Alternative: record the adjusting entry for Eastpac Bankon 30 April)vi.vii.Electricity expenses average $2,400 per year. The Electricity meterwas last read exactly three months ago. The bill was received 2months ago and paid last month. The financial year ends today.Record the adjusting entry for the three months ended today.Chang Ltd. records uncollectible receivables using the allowancemethod, calculating the amount of the adjustment using thepercentage of receivables approach. At the end of the financialyear the balance of the Accounts Receivable account of Chang Ltd.is $78,000 debit, the balance of the Allowance for Bad Debtsaccount is $1,000 credit and estimates that 2% of its receivablesbalance will be uncollectible. Record the adjusting entry.(Alternative: record the adjusting entry assuming thebalance of the Allowance for Bad Debts account is $1,000debit) (Alternative: record the adjusting entry using thepercentage of sales approach, assuming net credit SalesRevenue was $78,000 and 2% of credit sales revenue willnot be collected)viii.When supplies are purchased by Andrea they were recorded as anasset. Calculations after an end of period stock-take revealed aclosing stock (balance) of $2,000. There was an opening balance of$3,000 and during the period $8,000 of supplies were purchased.Record the adjusting entry. (Alternative: record the adjustingentry assuming the supplies were recorded as an expensewhen purchased.)ix.Raechel pays her insurance of $24,000 annually in early September.The insurance policy covers all her claims from 12.01 a.m. onSeptember 1. Insurance is recorded as an expense when paid andthe financial year ends on December 31. Record Raechel’s adjustingentry for the four months ended December 31. (Alternative:record the adjusting entry assuming the insurance wasrecorded as a prepayment (asset) when paid.)(Alternative: record the adjusting entry from theperspective of the insurance company assuming theinsurance was recorded as a liability when received.)(Alternative: record the adjusting entry from theperspective of the insurance company assuming theinsurance was recorded as revenue when received.)x.On 1 March, Ryan Rockclimbing paid $1,200 to the localrockclimbing magazine for a one-page advertisement for Ryan’srockclimbing skills courses. The a
dvertisements will run each monthfor the next 12 months. Ryan initially recorded the advertising as aprepayment (asset). Record the adjusting entry for Ryan for themonth of March. (Alternative: record the adjusting entryassuming the advertising was recorded as an expensewhen paid.) (Alternative: record the adjusting entry fromthe perspective of the magazine company assuming theadvertising was recorded as a liability when received.)(Alternative: record the adjusting entry from theperspective of the magazine company assuming theadvertising was recorded as revenue when received.)xi.When office photocopying paper is purchased it is recorded as anexpense. An end of period stock-take (count) revealed a closingbalance of $3,000. There was an opening balance of $1,000 andduring the period $5,000 of photocopying paper was purchased.Record the adjusting entry. (Alternative: record the adjustingentry assuming the photocopying paper was recorded asan asset when purchased.)xii.James Limited received rent on the first day of November 2015, atotal of $70,200 in advance for twelve months commencing on thatday and records it as revenue. Record the adjusting entry for theyear ending June 30, 2016 for James Limited.(Alternative: record the adjusting entry assuming therent was recorded as a liability when received.)(Alternative: record the adjusting entry from theperspective of the tenant assuming the rent was recordedas an asset when paid.)(Alternative: record the adjusting entry from theperspective of the tenant assuming the rent was recordedas an expense when paid.)xiii.Adriel Construction received $500,000 in August 2015 for a newbuilding project and recorded this initial cash receipt as a liability.The project is 75% complete at financial year-end. Record theadjusting entry for financial year ending June 30, 2016 forAdriel. (Alternative: record the adjusting entry assumingthe initial cash receipt was recorded as revenue whenreceived.)xiv.A tennis club offered a special rate for upfront annual membershipsat the start of the season. If patrons paid their 12 months’ fees inadvance they only had to pay $1,200. The tennis club recorded thefees received as “Membership Revenue”, and 300 people signedup. At the end of the financial year the tennis club had beenoperational for 3 months. Record the adjusting entry for the tennisclub. (Alternative: record the adjusting entry assuming theinitial cash receipt was recorded as a liability whenreceived.)xv.Nelson owns a cruise ship and leased it for 8 years receiving $9.6million (the entire lease amount) at the commencement of thelease. Nelson recorded the receipt of the money as Unearned RentRevenue. Record the adjusting entry when his first financial yearends two months after the lease commenced. (Alternative:record the adjusting entry assuming the initial cash receiptwas recorded as revenue when received.)xvi.On 1 September 2013, Stephen Services purchased a new digitalSLR camera for $18,500. The depreciation charge for the camera is$3,000 per year. Record the adjusting entry for depreciation for thefinancial year ending 30 June 2016. Alternative: record theadjusting entry assuming the camera was purchased on 1September 2015.)(Alternative: record the adjustingentry assuming the depreciation charge was $350 permonth and the camera was purchased on 1 September2013.) (Alternative: record the adjusting entry assumingthe depreciation charge was $350 per month and thecamera was purchased on 1 September 2015.)Question 9Eric Enterprises has asked for your assistance in preparing their financialstatements. Eric has provided you with the following list of accounts andtheir account balances. Eric advises you that all accounts have a normalbalance and that the balance of the Retained Earnings account reflectsthe net profit that has been retained in the business.$Accounts Payable1,200DebitCreditAccounts Receivable12,000Accumulated Depreciation Delivery Van12,000Advertising Expense10,000Bad Debts Expense3,600Bank Loan50,000Cash28,000Contributed Capital13,000Cost of Goods Sold55,000Delivery Van36,000Depreciation Expense3,600Dividends10,000Electricity Expense800Electricity Payable240Insurance Expense6,000Interest Expense5,000Interest Payable100Interest Receivable840Inventory25,000Prepaid Insurance8,000Prepaid Rent2,000Rent Expense20,000Retained Earnings, April 140,000Salaries Expense15,000Salaries Payable1,500Sales Revenue120,000Supplies400Supplies Expense1,300Unearned Revenue4,500Required:A. Identify the normal balance of each account by transferring the dollaramount into the correct debit or credit column.B. Prepare the following financial statements:a. Income Statementb. Statement of Changes in Equity (Retained Earnings)c. Balance sheetC. Record the closing entries in a general journal using only the ledgeraccounts given. Question 10Tim Textile Company (TTC) prepares monthly bank reconciliations of thecompany’s cheque account balance. An extract of the bank statementof TTC showing the last entries for for May 2016 indicated the following:On investigation it was found that:The NSF cheque No. 399 was a customer’s cheque previouslydeposited into the bank account that bounced due to insufficientfunds in the customer’s bank account.The deposit from Franc’s Fabrics related to the collection of a note($2,500) and the related interest ($200). A previous adjusting entryhad recorded the interest revenue as a receivable at the time it wasearned. This $2,700 cash deposit had not been recorded in theaccounting records of TTC.The May 31 Interest deposit had not been recorded in theaccounting records of TTC.An analysis of TTC’s accounting records revealed the following itemsthat appeared in the accounts of TTC but did not appear in the bankstatement for May:Cheque number #5489 for $650 paid to Electric Energy for anelectricity bill and cheque number #5490 for $230 paid toOfficegear Supplies for stationery.A cheque for $1,780 received from Ben Robbins and a chequefor $1,560 received from GeoTex. Both were for textiledesigning services and were deposited into the bank on May30.Additionally, it was found that cheque #5488 correctly appeared asa withdrawal of $780 in the bank statement but was incorrectlyrecorded as a cash disbursement of $870 in the accounting recordsof TTC. The cheque was to pay an open account payable.The closing balance of the cheque account per TTC’s accountingrecords on May 31 was $10,137Required:A) Prepare a bank reconciliation in proper form for May 31,2016.B) Record the transactions (adjustments) Tim TextileCompany will need as a result of this bank reconciliationprocess?C) What amount would Tim Textile Company report as thecash balance in the statement of financial position (balancesheet) at May 31, 2016?D) How does the preparation of bank reconciliations aid ininternal control?

Calculate the price
Make an order in advance and get the best price
Pages (550 words)
$0.00
*Price with a welcome 15% discount applied.
Pro tip: If you want to save more money and pay the lowest price, you need to set a more extended deadline.
We know how difficult it is to be a student these days. That's why our prices are one of the most affordable on the market, and there are no hidden fees.

Instead, we offer bonuses, discounts, and free services to make your experience outstanding.
How it works
Receive a 100% original paper that will pass Turnitin from a top essay writing service
step 1
Upload your instructions
Fill out the order form and provide paper details. You can even attach screenshots or add additional instructions later. If something is not clear or missing, the writer will contact you for clarification.
Pro service tips
How to get the most out of your experience with Essay Fountain
One writer throughout the entire course
If you like the writer, you can hire them again. Just copy & paste their ID on the order form ("Preferred Writer's ID" field). This way, your vocabulary will be uniform, and the writer will be aware of your needs.
The same paper from different writers
You can order essay or any other work from two different writers to choose the best one or give another version to a friend. This can be done through the add-on "Same paper from another writer."
Copy of sources used by the writer
Our college essay writers work with ScienceDirect and other databases. They can send you articles or materials used in PDF or through screenshots. Just tick the "Copy of sources" field on the order form.
Testimonials
See why 20k+ students have chosen us as their sole writing assistance provider
Check out the latest reviews and opinions submitted by real customers worldwide and make an informed decision.
Sociology
Thank you, this is an 8-week course, so I will be needing your assistance.
Customer 452919, January 20th, 2023
Sociology
Thank you for following the guidelines of the discussion essay. We are off to a great start.
Customer 452919, March 20th, 2024
Psychology
Communication on the small delay was appreciated and final result was worth the wait. Thank you.
Customer 452665, March 18th, 2021
Health Care
Thank you for getting this paper done in a timely manner
Customer 452641, February 20th, 2021
Sociology
Thank you Team!
Customer 452919, April 5th, 2022
Marketing
Excellent and thank you!
Customer 452591, December 12th, 2020
Nursing
Great paper thank you so much
Customer 452667, March 19th, 2021
Sociology
Thank you!
Customer 452919, April 5th, 2022
Education
I love you guys, yal are the best. Thank you so much !!!
Customer 453117, September 10th, 2022
Human Resources Management (HRM)
Thank you for your time and help. I was concerned that I would not make my deadline due to a family emergency, and you guys came through in the clutch. you are appreciated and i will be letting friends and family know of my experience here.
Customer 453045, February 24th, 2022
Business Studies
This is fantastic! Thank you so much! Great customer service and help!
Customer 453131, November 15th, 2022
English 101
well written excellent job, thank you!!
Customer 452989, December 2nd, 2021
11,595
Customer reviews in total
96%
Current satisfaction rate
3 pages
Average paper length
37%
Customers referred by a friend
OUR GIFT TO YOU
15% OFF your first order
Use a coupon FIRST15 and enjoy expert help with any task at the most affordable price.
Claim my 15% OFF Order in Chat