Preparation of accounting records using spreadsheets

ASSIGNMENT

Contents
Solution – 1 - Preparation of accounting records – using spreadsheets......................................................2
Journal Entries.........................................................................................................................................2
T. accounts..............................................................................................................................................3
Unadjusted Trial Balance.........................................................................................................................5
Types of Adjusting Entries.......................................................................................................................6
Adjusting Entries for Flash Cleaning Services as at 31 July 2018..............................................................7
Ten Column Worksheet in the books of Flash Cleaning Services.............................................................8
Financial Statements...............................................................................................................................9
Ratio Calculation....................................................................................................................................11
Evaluation of ratios................................................................................................................................11
Change in ratio’s if company repays the bank loan...............................................................................12
Recommendation..................................................................................................................................12
Solution – 2 - History of accounting – essay..............................................................................................13
Solution – 3 - ABC Learning Case Study.....................................................................................................15
3 (1). Failure of ABC Learning................................................................................................................15
3(2) The Ethical Issues...........................................................................................................................16
References.................................................................................................................................................17

Solution – 1 - Preparation of accounting records – using
spreadsheets
Journal Entries
Journal Entries in the books of Flash Cleaning Services
For the month of July, 2018
Date Particulars Dr./Cr. Amount
1-Jul-18 Bank Dr. $30,000
Capital Cr. $30,000
(Being capital contribution recorded)
1-Jul-18 Bank Dr. $20,000
Loan Cr. $20,000
(Being loan taken from bank)
1-Jul-18 Motor Vehicle - Van Dr. $18,000
Bank Cr. $18,000
(Being vehicle purchased)
1-Jul-18 Insurance expense Dr. $3,600
Bank Cr. $3,600
(Being insurance paid for the period 1 July to 30 June)
1-Jul-18 Cleaning equipment Dr. $4,800
Bank Cr. $4,800
(Being paid for cleaning equipment)
9-Jul-18 Supplies Dr. $2,400
Accounts payable Cr. $2,400
(Being supplies purchased on credit)
13-Jul-18 Bank Dr. $500
Service revenue Cr. $500
(Being service revenue received)
20-Jul-18 Wages expense Dr. $1,600
Bank Cr. $1,600
(Being wages paid upto 20 July)
25-Jul-18 Bank Dr. $5,500
Unearned service revenue Cr. $5,500
(Being service revenue received in advance)
27-Jul-18 Accounts payable Dr. $2,000
Bank Cr. $2,000
(Being amount paid for purchase of supplies on 9th July)

31-Jul-18 Interest expense Dr. $300
Bank Cr. $300
(Being interest paid on loan)
31-Jul-18 Advertising expense Dr. $1,600
Bank Cr. $1,600
(Being advertising expense paid for the month)
T. accounts
General Ledgers
In the books of Flash Cleaning Services
For the month of July, 2018
Bank
Date Description Debit Date Description Credit
1-Jul-18 Capital $ 30,000 1-Jul-18 Motor Vehicle - Van $ 18,000
1-Jul-18 Loan $ 20,000 1-Jul-18 Insurance expense $ 3,600
13-Jul-18 Service revenue $ 500 1-Jul-18 Cleaning equipment $ 4,800
25-Jul-18 Unearned service revenue $ 5,500 20-Jul-18 Wages expense $ 1,600
27-Jul-18 Accounts payable $ 2,000
31-Jul-18 Interest expense $ 300
31-Jul-18 Advertising expense $ 1,600
31-Jul-18 Balance c/d $ 24,100
$ 56,000 $ 56,000
Cleaning Equipment
Date Description Debit Date Description Credit
1-Jul-18 Bank $ 4,800 31-Jul-18 Balance c/d $ 4,800
$ 4,800 $ 4,800
Motor Vehicle - Van
Date Description Debit Date Description Credit
1-Jul-18 Bank $ 18,000 31-Jul-18 Balance c/d $ 18,000
$ 18,000 $ 18,000
Supplies
Date Description Debit Date Description Credit
9-Jul-18 Accounts payable $ 2,400 31-Jul-18 Balance c/d $ 2,400