Balance Sheet Analysis for a Company

The provided assignment focuses on analyzing a company's balance sheet for the fiscal year ending June 30, 2016. It presents details about current and non-current assets, including land, buildings, motor vehicles, accounts receivable, prepaid GST, and cash at bank. The analysis also covers liabilities like GST payable, accounts payable, and a long-term loan. Finally, it outlines the company's owner's equity, comprised of capital, drawings, and net profit.

Running head: PREPARE FINANCIAL REPORTS
Prepare Financial Reports (Assessment 2)
Name of the Student:
Name of the University:
Author’s Note:
Course ID:

PREPARE FINANCIAL REPORTS
Table of Contents
Answer to Question 1:......................................................................................................2
Answer to Question 2:......................................................................................................3
Answer to Question 3:......................................................................................................4
Answer to Question 4:......................................................................................................5
Answer to Question 5:......................................................................................................6
Bibliographies:..................................................................................................................8
Student Name:
Student Number:
1

PREPARE FINANCIAL REPORTS
Answer to Question 1:
In the Books of Smart Solutions Private Limited
Trial Balance
for the year ended 30 June 2016
Account Names Debit Amount Credit Amount
Sales $120,729
Electricity $1,100
Accounts Receivable $350
Land $247,000
Wages $49,000
Advertising $625
Accumulated Depreciation-Building $750
Accumulated depreciation- Motor
Vehicle
$24,190
Building $450,000
Cash at Bank $12,375
GST Paid $395
GST Payable $3,096
Accounts Payable $1,580
Long-Term Loan $145,800
Motor Vehicle $96,750
Telephone $1,250
Depreciation (Building) $750
Depreciation (Motor Vehicle) $24,190
Motor Vehicle Maintenance $9,360
Capital $600,000
Drawings $3,000
Total $ 896,145 $ 896,145
Student Name:
Student Number:
2

PREPARE FINANCIAL REPORTS
Answer to Question 2:
In the Books of Smart Solutions Private Limited
Closing Entries
for the period ended 30 June 2016
Date Particulars
Debit Amount (in
$)
Credit Amount (in
$)
30/6/201
6 Sales Account………………Dr
120,7
29
To Income Summary Account
120,7
29
30/6/201
6 Income Summary Account………Dr
86,2
75
To Electricity Account
1,1
00
To Wages Account
49,0
00
To Advertising Account
6
25
To Telephone Account
1,2
50
To Depreciation on Building Account
7
50
To Depreciation on Motor Vehicle
Account
24,1
90
To Motor Vehicle Maintenance Account 9,3
Student Name:
Student Number:
3

PREPARE FINANCIAL REPORTS
60
30/6/201
6 Income Summary Account………………Dr
34,4
54
To Capital Account
34,4
54
30/6/201
6 Capital Account…………………Dr
3,0
00
To Drawings Account
3,0
00
Answer to Question 3:
In the Books of Smart Solutions Private Limited
Post-Closing Trial Balance
for the year ended 30 June 2016
Account Names Debit Amount Credit Amount
Accounts receivable $ 350
Land $ 247,000
Accumulated Depreciation- Building $ 750
Accumulated Depreciation- Motor
Vehicle $ 24,190
Building $ 450,000
Cash at Bank $ 12,375
GST Paid $ 395
GST Payable $ 3,096
Accounts Payable $ 1,580
Long-Term Loan $ 145,800
Student Name:
Student Number:
4

PREPARE FINANCIAL REPORTS
Motor Vehicle $ 96,750
Capital $ 631,454
Total $ 806,870 $ 806,870
Answer to Question 4:
In the Books of Smart Solutions Private Limited
Income Statement
for the year ended 30 June 2016
Particulars Amount (in $)
Sales 120,729
Less: Operating expenses
Electricity 1,100
Wages 49,000
Advertising 625
Telephone 1,250
Depreciation (Building) 750
Depreciation (Motor Vehicle) 24,190
Motor Vehicle Maintenance 9,360
Total Operating Expenses 86,275
Operating Income 34,454
Less: Interest expense -
Profit before Tax 34,454
Less: Tax Expense -
Net Profit 34,454
In the Books of Smart Solutions Private
Limited
Student Name:
Student Number:
5

PREPARE FINANCIAL REPORTS
Statement of Change in equity
for the year ended 30 June 2016
Particulars Amount (in $)
Beginning Capital -
Add: Additional Contributions 600,000
Net Profit 34,454
Less: Drawings 3,000
Closing Capital 631,454
Answer to Question 5:
In the Books of Smart Solutions Private Limited
Balance Sheet Statement
for the year ended 30 June 2016
Particulars Amount (in $) Amount (in $)
Current Assets:
Accounts Receivable 350
Prepaid GST 395
Cash at Bank 12,375
Total Current Assets 13,120
Non-Current Assets:
Land 247,000
Building 450,000
Less: Accumulated Depreciation 750 449,250
Motor Vehicle 96,750
Less: Accumulated Depreciation 24,190 72,560
Total Non-Current Assets 768,810
Total Assets 781,930
Liablities and Owner's Equity:
Liabilities:
Student Name:
Student Number:
6

PREPARE FINANCIAL REPORTS
Current Liabilities:
GST Payable 3,096
Accounts Payable 1,580
Total Current Liabilities 4,676
Non-Current Liabilities:
Long-Term Loan 145,800
Total Non-Current Liabilities 145,800
Total Liabilities 150,476
Owner's Equity:
Capital 600,000
Less: Drawings 3,000
Add: Net Profit 34,454
Total Owner's Equity 631,454
Total Liabilities and Owner's
Equity 781,930
Student Name:
Student Number:
7