Accounting Report on Financial Statements, Depreciation Methods, and Inventory Methods

ACCOUNTING 1
ACCOUNTING

ACCOUNTING 2
Contents
Introduction:...............................................................................................................................3
Financial statements:..................................................................................................................4
Financial Report:......................................................................................................................16
Different method of depreciation:........................................................................................18
Inventory methods:...............................................................................................................19
Internal control mechanisms:...............................................................................................19
Conclusion:..............................................................................................................................19
References:...............................................................................................................................20

ACCOUNTING 3
Introduction:
This report talks about the transactions that have been entered into during the year. It further
shows the various calculations with regard to the drawing of the T accounts, journal entries,
closing entries, drawing of the financial statements etc.
Then the report talks about the various depreciation method that could be used, their
advantages and disadvantages. Also, the inventory method and their impact over the financial
position of the company.

ACCOUNTING 4
Financial statements:
TRANSACTIONS
Date Details
Jul-17 2 Business established with contribution from A Stanlee of $100,000 cash.
5
Purchased inventory on credit from SuperStock. Purchased 25x Mermaid Fountains
for $349 each (not incl GST) and 12x Kingseat Garden Benches for $275 each (not
incl GST).
Aug 2 Bought office furniture (asset) from Smart Mart, on credit, for $33 000 (incl GST).
Aug 18 Bought general supplies for the office for $665.50 (incl GST). Paid with cash.
Aug 29 Paid Super Stock account in full for July purchases.
Sept 4
Sold 10x Mermaid Fountains on credit to Garden Solutions for $10 516 (gross
total). Credit terms 4/15 n60.
Sept 16 Received payment from debtor of Sept 4 (4% discount applies).
Sept 29 Sold 3x Kingseat Benches for $3 135 cash (incl GST).
Oct 2
Paid cash for insurance Invoice in the amount of $2750. (Invoice amount covers
insurance for 12months - 1 Oct 17-30 Sept 18, and includes GST)
Oct 9
Performed services including delivery and installation for $1870 (incl GST) on
credit to customers.
Oct 12
Purchased inventory from SuperStock: 10x Mermaid Fountains for $360 each (not
incl GST). Paid with cash.
Nov 5 Paid Super Realty rent for July to October - paid cash $1232 (incl GST).
Nov 7
Sold 6x Mermaid Fountains on credit to Bank Botanicals for $6 479 (incl GST).
Credit terms 3/30 n60

ACCOUNTING 5
Dec 2
Received full payment from Bank Botanicals for sale of 7 Nov (3% discount
applies).
Jan-18 1
Paid $27 500 (incl GST) on credit for a Toyota van (asset). The van will have a
residual value of $6000 at the end of its effective life.
Feb 22 Purchased 4x Kingseat Benches for $1 200 total (not incl GST) on credit.
Mar 5 Paid Super Realty rent for November to February - paid cash $1232 (incl GST).
Mar 31
Sold inventory: 2x Mermaid Fountains and 6x Kingseat Benches for a total of
$14,190 (incl GST) cash.
June 6
Paid fortnightly wages: office assistant, T Frankenstand received $970 (net pay)
(PAYG $172).
June 20
Paid fortnightly wages: Frankenstand received $970 (net pay) (PAYG $172); and M
Spiders received $448 (net pay) (PAYG amount $21).
June 27 A. Stanlee withdrew $4500 from the business for private travel.
GENERAL JOURNAL
Date Details Debit Credit
July 2 Cash at bank 1,00,000.00
A Stanlee, Capital 1,00,000.00
A Stanlee contributes cash to the business
July 5 Purchases 12,025.00
Account payable 12,025.00
(Purchased raw material)
Aug 2 Office furniture 30,000.00
GST 3,000.00
Cash 33,000.00

ACCOUNTING 6
Purchased office furniture
Aug 18 General supplies 598.95
GST 66.55
Cash 665.50
Purchased general supplies
Aug 29 Accounts payable
Cash 33,000.00
Paid for purchase of inventory 33,000.00
Sep 4 Accounts receivables 10,516.00
Sales 9,560.00
GST 956.00
Sales made
Sep 16 Cash 10,095.36
Accounts receivables 10,095.36
Cash received in respect of sales made
Sep 29 Cash 3,135.00
Sales 2,850.00
GST 285.00
Sales made
Oct 2 Prepaid insurance 2,475.00
GST 275.00
Cash 2,750.00
Amounts paid towards insurance
Oct 9 Accounts receivables 1,870.00
Sales 1,700.00

ACCOUNTING 7
GST 170.00
Sales revenue generated
Oct 12 Purchases 3,600.00
Cash 3,600.00
Purchases made
Nov 5 Rent expense 1,108.80
GST 123.20
Cash 1,232.00
Paid rent
Nov 7 Accounts receivables 6,479.00
Sales 5,890.00
GST 589.00
Sales revenue generated
Dec 2 Cash 6,284.63
Accounts receivables 6,284.63
Cash received in respect of sales made
Jan 1 Van 24,750.00
GST 2,750.00
Cash 27,500.00
Purchased van
Feb 22 Purchases 1,200.00
Account payable 1,200.00
(Purchased raw material)
Mar
5 Rent expense 1,120.00
GST 112.00

ACCOUNTING 8
Cash 1,232.00
Paid rent
Mar 31 Cash 14,190.00
Accounts receivables 14,190.00
Cash received in respect of sales made
Jun 6 Wage expense 970.00
PAYG 172.00
Cash 1,142.00
Paid wages
Jun 20 Wage expense 1,418.00
PAYG 193.00
Cash 1,611.00
Paid wages
Jun 27 Drawings 4,500.00
Cash 4,500.00
Withdrawings
2,76,027.49 2,76,027.49
GENERAL JOURNAL - Adjustments 30 June 18