Financial Interpretation: Analysis, Income Statement, Transactions

This article provides a financial interpretation of transactions, income statement, and analysis for a company. It also discusses the legal consequences of drug abuse and the impact on the business.

Running head: FINANCIAL INTERPRETATION
Financial Interpretation
Name of Student:
Name of University:
Author’s Note:

1FINANCIAL INTERPRETATION
Table of Contents
Answer to Question 1......................................................................................................................2
Part A...............................................................................................................................................2
Part B...............................................................................................................................................3
Part C...............................................................................................................................................6
References........................................................................................................................................8

2FINANCIAL INTERPRETATION
Answer to Question 1
Part A
Date Transaction Analysis Chart (A= L+ OE)
Assets Liabilities Owner's Equity
1-Jan 100000 20000 80000
2-Jan 250000 250000
3-Jan 12400 12400
4-Jan 4400 4400
5-Jan 32000 32000
6-Jan 6500 6500
7-Jan 800 800
8-Jan 6500 6500
15-Jan 4800 4800
17-Jan 2000 2000
18-Jan 2400 2400
21-Jan 8700 8700
23-Jan 1200 1200
24-Jan 2300 2300
26-Jan 270 270
27-Jan 1800 1800
28-Jan 8400 8400
30-Jan 1800 1800
31-Jan 5140 5140
31-Jan 400 400
31-Jan 950 950
31-Jan 375 375
31-Jan 4800 4800
31-Jan 1500 1500
31-Jan 2400 2400
31-Jan 200 200
31-Jan 8900 8900
Total 470935 470935

3FINANCIAL INTERPRETATION
Part B
Cam Smith Income Statement for
January 2018
Revenues
Revenues from Client 22400
Interest Revenue 950
Total Revenues 23350
Expenses
Wages 1300
PayG Taxes 800
Telephone Charges A/c Dr. 270
Supplies expense 400
Utilities Expense 375
Total Expenses 3145
Net Income 17060
Assets Amount Liabilities Amount
Current Assets Current Liabilities
Cash 106800 Accounts Payable 2400
Accounts Receivable 15800 Wages Payable 900
Total current Assets 122600 Taxes Payable 300
Property, Plant and
Equipment Other Expenses 297900
Land and Buildings 250000
Equipment 18000
Long Term
Liabilities
Office Furniture 2000 Long Term Loan 20000
Less: Accumulated Dep. 8900
Net: Property, Plant and
Equipment 278900
Shareholder's Equity 80000
Total Assets 401500 Total Liabilities and 401500

4FINANCIAL INTERPRETATION
Shareholder's
Equity
Dr. Cr.
Date Particulars Amount Amount
1-Jan Cash A/c Dr. 100000
To Capital A/c 80000
To Loan A/c 20000
2-Jan
Land & Building A/c
Dr. 250000
Deposit A/c Dr. 25000
To Cash A/c 225000
To Power Banking
Corporation 25000
3-Jan
Fitness Equipment
A/c Dr. 10000
Accounts Payable
A/c Dr. 2400
To Cash A/c 12400
4-Jan Furniture A/c Dr. 2000
Insurance A/c Dr. 2400
To Cash A/c 4400
5-Jan
Compunter
Equipment A/c Dr. 8000
Motor Vehicle A/c
Dr. 24000
To cash A/c 8000
To Bank A/c 24000
6-Jan
Accounts Receivables
A/c Dr. 2000
To Sales Revenue A/c 2000
7-Jan Purchase A/c Dr. 800
To Loan A/c 800
8-Jan Equipment A/c Dr. 6500
To Cash A/c 6500
15-Jan
Accounts Receivables
A/c Dr. 4800
To Sales Revenue A/c 4800
17-Jan Cash A/c Dr. 2000
To Accounts
Receivables A/c 2000

5FINANCIAL INTERPRETATION
18-Jan Salary A/c Dr. 2400
To Accounts Payable 2400
21-Jan
Accounts Receivables
A/c Dr. 7200
Drawings A/c Dr. 1500
To Sales Revenue A/c 7200
To Cash A/c 1500
23-Jan Wages A/c Dr. 900
PayG Tax A/c Dr. 300
To Cash A/c 1200
24-Jan Cash A/c Dr. 2300
To Accounts
Receivables A/c 2300
26-Jan
Telephone Charges
A/c Dr. 270
To Cash A/c 270
27-Jan
Accounts Receivables
A/c Dr. 1800
To Blacburn Golf
Club 1800
28-Jan
Accounts Receivables
A/c Dr. 8400
To Sales Revenue A/c 8400
30-Jan Wages A/c Dr. 1300
PayG Tax A/c Dr. 500
To Cash A/c 1800
31-Jan
Motor Vehicle A/c
Dr. 240
Drawings A/c Dr. 2200
Office stationary A/c
Dr 200
Cash A/c Dr. 2500
To Accounts
Receivables A/c 2500
To Cash A/c 440
To Joining
Membership fees 1200
To Renovation
Charges 1000
31-Jan Supplies expense 400
Supplies on hand A/c 400

6FINANCIAL INTERPRETATION
31-Jan
Accrued Interest
Income 950
Interest 950
31-Jan
Utilities Expense A/c
Dr. 375
To Accounts Payable 375
31-Jan Depreciation A/c Dr. 4800
To Motor Vehicle 4800
31-Jan Depreciation A/c Dr. 1500
To Fitness
Equipment 1500
31-Jan Depreciation A/c Dr. 2400
To Computer
Equipment 2400
31-Jan Depreciation A/c Dr. 200
To Office Furniture 200
31-Jan P/L A/c Dr. 8900
To Depreciation 8900
Part C
The different types of the issues pertaining to the premature deaths among the users
CanFix and the clients using this medicine has been determined with the several risk factors
which are of severe social and ethical issues. The legal consequence for the drug abuse has been
determined in form of the suffering from permanent legal consequences. The pharmaceutical
company can be arrested under the charge of premature deaths to the clients. The investigations
in the causes of the social impact will impact on the overall business of CanFix (Massele et al.
2017). This may impact on reduced goodwill and permanent dissolving of the company. The
individuals may be “sentenced to 25 years in prison for drug abuse”. The combination of the
business will be also affected with the reduced goodwill amount. In addition to this, We Fix All
Ltd. On decision of acquiring the company may be facing the similar legal issues like CanFix.

7FINANCIAL INTERPRETATION
The national drug policy will be effective in enforcing the drug legislation and for the agreement
of the government guidelines as per the generally accepted rules (Merry and Brookbanks 2017).

8FINANCIAL INTERPRETATION
References
Massele, A., Burger, J., Kalemeera, F., Jande, M., Didimalang, T., Kalungia, A.C., Matshotyana,
K., Law, M., Malone, B., Ogunleye, O. and Oluka, M., 2017. Outcome of the second medicines
utilisation research in Africa group meeting to promote sustainable and appropriate medicine use
in Africa. Expert review of pharmacoeconomics & outcomes research, 17(2), pp.149-152.
Merry, A. and Brookbanks, W., 2017. Merry and Mccall Smith's Errors, Medicine and the
Law (Vol. 38). Cambridge University Press.