Accounting Theory and Application

This document contains journal entries, adjusting entries, and T Ledger for Perfect Landscaping. It also includes a Profit and Loss Statement and a Balance Sheet. The document covers topics such as Bank, Accounts Receivable, Electricity Expense, GST Paid, Salaries Expense, Fees Revenue, GST Collected, Interest Income, Motor Vehicle, Bad Debt Expense, Provision for Bad Debt, Interest Expense, Interest Payable, Landscaping Supplies Expenses, Landscaping Supplies, Depreciation Expense-Landscaping Equipment, Accumulated Depreciation-Landscaping Equipment, Unearned Fees, Rent Expense, Prepaid Rent, Insurance Expense, Prepaid Insurance, Salaries Payable, Telephone Expenses, Accounts Payables, Loan Payable, GST Collections, Capital, Drawings, and Fees Revenue.

Running head: ACCOUNTING THEORY AND APPLICATION
Accounting Theory and Application
Name of the Student:
Name of the University:
Author’s Note:

1ACCOUNTING THEORY AND APPLICATION
Table of Contents
1. Journal entries for June transactions:.....................................................................................2
2. Adjusting entries for the end of June:....................................................................................3
3. T Ledger:................................................................................................................................4
4. Profit and Loss Statement:...................................................................................................11
5. Balance Sheet:......................................................................................................................12
Bibliography:............................................................................................................................14
Appendix:.................................................................................................................................15

2ACCOUNTING THEORY AND APPLICATION
1. Journal entries for June transactions:
Perfect Landscaping
Journal
Date Particulars Debit Credit
01-Jun-
19 Bank 16,400
Accounts Receivables 16,400
(To record receipts of cash from the customers)
15-Jun-
19 Bank 8,540
Accounts Receivables 8,540
(To record receipts of cash from the customers)
22-Jun-
19 Electricity Expense 1,582
GST Paid 158
Bank 1,740
(To record payment of electricity bill for the month)
24-Jun-
19 Salaries Expense 8,340
Bank 8,340
(To record payment of salaried for the month of June)
29-Jun-
19 Bank 11,320
Accounts Receivables 11,320
(To record receipts of cash from the customers)
30-Jun-
19 Accounts Receivables 21,350
Fees Revenue

3ACCOUNTING THEORY AND APPLICATION
19,409
GST Collected 1,941
(To record credit sales for the month of June)
30-Jun-
19 Bank 135
Interest Income 135
(To record interest receipts on bank deposit)
30-Jun-
19 Motor Vehicle 41,500
Bank 16,500
Bank Loan 25,000
(To record purchase of Motor Vehicle for cash and bank
loan)
30-Jun-
19 Bad Debt Expense 3,750
Provision for Bad Debt 3,750
(To record bad debt Expense)
2. Adjusting entries for the end of June:
Perfect Landscaping
Journal
Date Particulars Debit Credit
30-Jun-19 Interest Expense 210
Interest Payable 210
(To record interest payable on bank loan)
30-Jun-19 Landscaping Supplies Expenses 1970
Landscaping Supplies 1970
(To record consumption of landscaping supplies)
30-Jun-19 Depreciation Expense-Landscaping Equipment 10240
Accumulated Depreciation-Landscaping Equipment 10240
(To record depreciation on Landscaping Equipment)
30-Jun-19 Unearned Fees 785

4ACCOUNTING THEORY AND APPLICATION
Fees Revenue 785
(To adjust the revenue earned with the unearned
revenue)
30-Jun-19 Rent Expense 1300
Prepaid Rent 1300
(To adjust the expired rent with the prepaid rent)
30-Jun-19 Insurance Expense 840
Prepaid Insurance 840
(To adjust the expired insurance with the prepaid
insurance)
30-Jun-19 Salaries Expense 1950
Salaries Payable 1950
(To record accrued salaries expenses)
30-Jun-19 Telephone Expenses 820
Telephone Expenses Payable 820
(To record accrued telephone expenses)
3. T Ledger:
Cash at Bank
Date Particulars Debit Date Particulars Credit
1-Jun-19 Balance b/f $ 19,870 22-Jun-19 Electricity Expense $ 1,582
1-Jun-19 Accounts Receivable $ 16,400 22-Jun-19 GST Receivable $ 158
15-Jun-19 Accounts Receivable $ 8,540 24-Jun-19 Salaries Expense $ 8,340
29-Jun-19 Accounts Receivable 11320 30-Jun-19 Motor Vehicle $ 16,500
30-Jun-19 Interest Income $ 135 30-Jun-19 Balance c/f $ 29,685
Total $ 56,265 Total $ 56,265
Accounts Receivable
Date Particulars Debit Date Particulars Credit
1-Jun-19 Balance b/f $ 47,980 1-Jun-19 Bank $ 16,400
30-Jun-19 Sales $ 19,409 15-Jun-19 Salaries Expense $ 8,540
30-Jun-19 GST Collected $ 1,941 29-Jun-19 Bank $ 11,320
30-Jun-19 Balance c/f $ 33,070
Total $ 69,330 Total $ 69,330

5ACCOUNTING THEORY AND APPLICATION
GST Receivable
Date Particulars Debit Date Particulars Credit
1-Jun-19 Balance b/f $ 3,100
22-Jun-19 Bank $ 158
30-Jun-19 Balance c/f $ 3,258
Total $ 3,258 Total $ 3,258
Prepaid Rent
Date Particulars Debit Date Particulars Credit
1-Jun-19 Balance b/f $ 3,900 30-Jun-19 Rent Expense $ 1,300
30-Jun-19 Balance c/f $ 2,600
Total $ 3,900 Total $ 3,900
Prepaid Insurance
Date Particulars Debit Date Particulars Credit
1-Jun-19 Balance b/f $ 2,800 30-Jun-19 Insurance Expense $ 840
30-Jun-19 Balance c/f $ 1,960
Total $ 2,800 Total $ 2,800
Landscaping Supplies
Date Particulars Debit Date Particulars Credit
1-Jun-19 Balance b/f $ 3,200 30-Jun-19
Landscaping
Supplies $ 1,970
30-Jun-19 Balance c/f $ 1,230
Total $ 3,200 Total $ 3,200
Landscaping Equipment
Date Particulars Debit Date Particulars Credit
1-Jun-19 Balance b/f $ 28,450
30-Jun-19 Balance c/f $ 28,450
Total $ 28,450 Total $ 28,450
Accumulated Depreciation-Landscaping Equipment
Date Particulars Debit Date Particulars Credit

6ACCOUNTING THEORY AND APPLICATION
1-Jun-19 Balance b/f $ 8,740
30-Jun-19
Depreciation
Expense-
Landscaping
Equipment $ 10,240
30-Jun-19 Balance c/f $ 18,980
Total $ 18,980 Total $ 18,980
Accounts Payables
Date Particulars Debit Date Particulars Credit
1-Jun-19 Balance b/f $ 3,160
30-Jun-19 Balance c/f $ 3,160
Total $ 3,160 Total $ 3,160
Unearned Fees
Date Particulars Debit Date Particulars Credit
30-Jun-19 Fees Revenue $ 785 1-Jun-19 Balance b/f $ 3,140
30-Jun-19 Balance c/f $ 2,355
Total $ 3,140 Total $ 3,140
Loan Payable
Date Particulars Debit Date Particulars Credit
1-Jun-19 Balance b/f $ 28,000
30-Jun-19 Balance c/f $ 28,000
Total $ 28,000 Total $ 28,000
GST Collections
Date Particulars Debit Date Particulars Credit
1-Jun-19 Balance b/f $ 8,430
30-Jun-19
Accounts
Receivable $ 1,941
30-Jun-19 Balance c/f $ 10,371
Total $ 10,371 Total $ 10,371
Capital
Date Particulars Debit Date Particulars Credit
1-Jun-19 Balance b/f $ 58,300

7ACCOUNTING THEORY AND APPLICATION
30-Jun-19 Balance c/f $ 58,300
Total $ 58,300 Total $ 58,300
Drawings
Date Particulars Debit Date Particulars Credit
1-Jun-19 Balance b/f $ 42,360
30-Jun-19 Balance c/f $ 42,360
Total $ 42,360 Total $ 42,360
Fees Revenue
Date Particulars Debit Date Particulars Credit
1-Jun-19 Balance b/f $ 142,380
30-Jun-19
Accounts
Receivable $ 19,409
30-Jun-19 Unearned Fees $ 785
30-Jun-19 Balance c/f $ 162,574
Total $ 162,574 Total $ 162,574
Electricity Expenses
Date Particulars Debit Date Particulars Credit
1-Jun-19 Balance b/f $ 5,840
22-Jun-19 Bank $ 1,582
30-Jun-19 Balance c/f $ 7,422
Total $ 7,422 Total $ 7,422
Rent Expenses
Date Particulars Debit Date Particulars Credit
1-Jun-19 Balance b/f $ 17,400
30-Jun-19 Prepaid Rent $ 1,300
30-Jun-19 Balance c/f $ 18,700
Total $ 18,700 Total $ 18,700
Salaries Expense
Date Particulars Debit Date Particulars Credit
1-Jun-19 Balance b/f $ 68,790
24-Jun-19 Bank $ 8,340
30-Jun-19 Salaries Payable $ 1,950
30-Jun-19 Balance c/f $ 79,080

8ACCOUNTING THEORY AND APPLICATION
Total $ 79,080 Total $ 79,080
Telephone Expense
Date Particulars Debit Date Particulars Credit
1-Jun-19 Balance b/f $ 8,460
30-Jun-19
Telephone Expenses
Payable $ 820
30-Jun-19 Balance c/f $ 9,280
Total $ 9,280 Total $ 9,280
Interest Income
Date Particulars Debit Date Particulars Credit
1-Jun-19 Balance b/f $ -
30-Jun-19 Bank $ 135
30-Jun-19 Balance c/f $ 135
Total $ 135 Total $ 135
Bad Debt Expense
Date Particulars Debit Date Particulars Credit
1-Jun-19 Balance b/f $ -
0-Jan-00
Provision for Bad
Debt $ 3,750
30-Jun-19 Balance c/f $ 3,750
Total $ 3,750 Total $ 3,750
Provision for Bad Debt
Date Particulars Debit Date Particulars Credit
1-Jun-19 Balance b/f $ -
30-Jun-19 Bad Debt Expense $ 3,750
30-Jun-19 Balance c/f $ 3,750
Total $ 3,750 Total $ 3,750
Bank Loans
Date Particulars Debit Date Particulars Credit
1-Jun-19 Balance b/f $ -
30-Jun-19 Motor Vehicle $ 25,000
30-Jun-19 Balance c/f $ 25,000
Total $ 25,000 Total $ 25,000
Motor Vehicle

9ACCOUNTING THEORY AND APPLICATION
Date Particulars Debit Date Particulars Credit
1-Jun-19 Balance b/f $ -
30-Jun-19 Bank $ 16,500
30-Jun-19 Bank Loan $ 25,000
30-Jun-19 Balance c/f $ 41,500
Total $ 41,500 Total $ 41,500
Interest Expense
Date Particulars Debit Date Particulars Credit
1-Jun-19 Balance b/f $ -
30-Jun-19 Interest Payable $ 210
30-Jun-19 Balance c/f $ 210
Total $ 210 Total $ 210
Interest Payable
Date Particulars Debit Date Particulars Credit
1-Jun-19 Balance b/f $ -
30-Jun-19 Interest Expense $ 210
30-Jun-19 Balance c/f $ 210
Total $ 210 Total $ 210
Landscaping Spplies Expenses
Date Particulars Debit Date Particulars Credit
1-Jun-19 Balance b/f $ -
30-Jun-19 Landscaping Supplies $ 1,970
30-Jun-19 Balance c/f $ 1,970
Total $ 1,970 Total $ 1,970
Depreciation Expense-Landscaping Equipment
Date Particulars Debit Date Particulars Credit
1-Jun-19 Balance b/f $ -
30-Jun-19
Accumulated
Depreciation-
Landscaping
Equipment $ 10,240
30-Jun-19 Balance c/f $ 10,240
Total $ 10,240 Total $ 10,240
Insurance Expense
Date Particulars Debit Date Particulars Credit
1-Jun-19 Balance b/f $ -

10ACCOUNTING THEORY AND APPLICATION
30-Jun-19 Prepaid Insurance $ 840
30-Jun-19 Balance c/f $ 840
Total $ 840 Total $ 840
Salaries Payable
Date Particulars Debit Date Particulars Credit
1-Jun-19 Balance b/f $ -
30-Jun-19 Salaries Expense $ 1,950
30-Jun-19 Balance c/f $ 1,950
Total $ 1,950 Total $ 1,950
Telephone Expense Payable
Date Particulars Debit Date Particulars Credit
1-Jun-19 Balance b/f $ -
30-Jun-19
Telephone
Expenses $ 820
30-Jun-19 Balance c/f $ 820
Total $ 820 Total $ 820

11ACCOUNTING THEORY AND APPLICATION
4. Profit and Loss Statement:
Perfect Landscaping
Profit and Loss Statement for the Year ended 30 June, 2019
Particulars Amount Amount
Fees Revenue $ 1,62,574
Other Revenue $ 135
Expenses:
Electricity Expenses $ 7,422
Rent Expenses $ 18,700
Salaries Expense $ 79,080
Telephone Expense $ 9,280
Bad Debt Expense $ 3,750
Interest Expense $ 210
Landscaping Supplies Expenses $ 1,970
Depreciation Expense-Landscaping Equipment $ 10,240
Insurance Expense $ 840
Total Expenses $ -1,31,492
Net Profit $ 31,217

12ACCOUNTING THEORY AND APPLICATION
5. Balance Sheet:
Perfect Landscaping
Balance Sheet as at 30 June, 2019
Amount Amount
Current Asset:
Cash at Bank $ 29,685
Accounts Receivable $ 33,070
Provision for Bad Debt $ -3,750
Prepaid Rent $ 2,600
Prepaid Insurance $ 1,960
Landscaping Supplies $ 1,230
Total Current Assets $ 64,795
Non-Current Assets:
Landscaping Equipment $ 28,450
Accumulated Depreciation-Landscaping Equipment $ -18,980
Motor Vehicle $ 41,500
Total Non-Current Assets $ 50,970
Total Assets $ 1,15,765
Current Liabilities:
Accounts Payables $ 3,160
Unearned Fees $ 2,355
Loan Payable $ 28,000
Interest Payable $ 210
Insurance Expense $ 1,950
Salaries Payable $ 820
GST Liability $ 7,113
Total Current Liabilities $ 43,608
Non-Current Liability:
Bank Loans $ 25,000
Total Non-Current Liabilities $ 25,000
Total Liabilities $ 68,608
Net Assets $ 47,157
Equity:
Capital $ 58,300
Drawings $ -42,360

13ACCOUNTING THEORY AND APPLICATION
Retained Earnings $ 31,217
Total Equity $ 47,157

14ACCOUNTING THEORY AND APPLICATION
Bibliography:
Hoyle, J.B., Schaefer, T. and Doupnik, T., 2015. Advanced accounting. McGraw Hill.
Macve, R., 2015. A Conceptual Framework for Financial Accounting and Reporting: Vision,
Tool, Or Threat?. Routledge.
Phillips, F., Libby, R. and Libby, P., 2015. Fundamentals of Financial Accounting. McGraw-
Hill Education.
Sangster, A., 2015. The genesis of double entry bookkeeping. The Accounting
Review, 91(1), pp.299-315.
Schaltegger, S. and Burritt, R., 2017. Contemporary environmental accounting: issues,
concepts and practice. Routledge.
Uyar, A., Gungormus, A.H. and Kuzey, C., 2017. Impact of the accounting information
system on corporate governance: Evidence from Turkish non-listed companies. Australasian
Accounting, Business and Finance Journal, 11(1), pp.9-27.

15ACCOUNTING THEORY AND APPLICATION
Appendix:
Worksheet: