Cown Village Towel Financial Statements Analysis

This assignment requires an analysis of the financial statements for Cown Village Towel. The provided documents include an Income Statement for a specific period and a Balance Sheet as at 31 December 2017. Students need to examine these statements, understanding key figures like Profit for the Period, Assets (Current & Non-Current), Liabilities (Current & Non-Current), and Equity. This analysis helps assess the financial health and performance of the business.

Running head: INTRODUCTION TO ACCOUNTING
Introduction on Accounting
Name of the Student:
Name of the University:
Author’s Note:

1INTRODUCTION TO ACCOUNTING
Table of Contents
General Ledger:..........................................................................................................................2
Trial Balance:.............................................................................................................................7
Statement of Change in Equity:.................................................................................................8
Income Statement:......................................................................................................................8
Balance Sheet:............................................................................................................................9
Bibliography:............................................................................................................................10

2INTRODUCTION TO ACCOUNTING
General Ledger:
Cash at Bank Dr. Cr.
Date Particulars Amount
Amoun
t Balance
31-12-
2017 Opening Balance 15,000 15,000
Dr
.
15,000
Dr
.
15,000
Dr
.
Closing Balance 15,000
Dr
.
Accounts Receivable Dr. Cr.
Date Particulars Amount
Amoun
t Balance
31-12-
2017 Opening Balance 30,000 30,000
Dr
.
30,000
Dr
.
30,000
Dr
.
Closing Balance 30,000
Dr
.
Supplies Dr. Cr.
Date Particulars Amount
Amoun
t Balance
31-12-
2017 Opening Balance 3,200 3,200
Dr
.
Supplies Consumed 2,500 700
Dr
.
700
Dr
.
Closing Balance 700
Dr
.
Prepaid Insurance Dr. Cr.
Date Particulars Amount Amoun Balance

3INTRODUCTION TO ACCOUNTING
t
31-12-
2017 Opening Balance 7,500 7,500
Dr
.
Preapid Insurance
expired 4,000 3,500
Dr
.
3,500
Dr
.
Closing Balance 3,500
Dr
.
Prepaid Rent Dr. Cr.
Date Particulars Amount
Amoun
t Balance
31-12-
2017 Opening Balance 12,000 12,000
Dr
.
Prepaid rent expired 6,000 6,000
Dr
.
6,000
Dr
.
Closing Balance 6,000
Dr
.
Land Dr. Cr.
Date Particulars Amount
Amoun
t Balance
31-12-
2017 Opening Balance
3,00,00
0
3,00,00
0
Dr
.
3,00,00
0
Dr
.
3,00,00
0
Dr
.
Closing Balance
3,00,00
0
Dr
.
Building Dr. Cr.
Date Particulars Amount
Amoun
t Balance
31-12-
2017 Opening Balance
5,00,00
0
5,00,00
0
Dr
.
Depreciation charged 50,000
4,50,00
0
Dr
.
4,50,00 Dr

4INTRODUCTION TO ACCOUNTING
0 .
Closing Balance
4,50,00
0
Dr
.
Equipment Dr. Cr.
Date Particulars Amount
Amoun
t Balance
31-12-
2017 Opening Balance 75,000 75,000
Dr
.
Depreciation charged 3,000 72,000
Dr
.
72,000
Dr
.
Closing Balance 72,000
Dr
.
Tom Doherty-Drawings Dr. Cr.
Date Particulars Amount
Amoun
t Balance
31-12-
2017 Opening Balance 23,000 23,000
Dr
.
23,000
Dr
.
23,000
Dr
.
Closing Balance 23,000
Dr
.
Salary Expense Dr. Cr.
Date Particulars Amount
Amoun
t Balance
31-12-
2017 Opening Balance 65,000 65,000
Dr
.
Accrued Salaries 3,000 68,000
Dr
.
68,000
Dr
.
Closing Balance 68,000
Dr
.

5INTRODUCTION TO ACCOUNTING
Telephone Expenses Dr. Cr.
Date Particulars Amount
Amoun
t Balance
31-12-
2017 Opening Balance 24,000 24,000
Dr
.
24,000
Dr
.
24,000
Dr
.
Closing Balance 24,000
Dr
.
Supplies Expense Dr. Cr.
Date Particulars Amount
Amoun
t Balance
31-12-
2017 Supplies Expenses 2,500 2,500
Dr
.
2,500
Dr
.
2,500
Dr
.
Closing Balance 2,500
Dr
.
Depreciation on Building Dr. Cr.
Date Particulars Amount
Amoun
t Balance
31-12-
2017
Depreciation charged on
Building 50,000 50,000
Dr
.
50,000
Dr
.
50,000
Dr
.
Closing Balance 50,000
Dr
.
Depreciation on Equipment Dr. Cr.
Date Particulars Amount
Amoun
t Balance

6INTRODUCTION TO ACCOUNTING
31-12-
2017
Depreciation charged on
Equipment 3,000 3,000
Dr
.
3,000
Dr
.
3,000
Dr
.
Closing Balance 3,000
Dr
.
Accrued Service Revenue Dr. Cr.
Date Particulars Amount
Amoun
t Balance
31-12-
2017 Service Revenue Due 12,000 12,000
Dr
.
12,000
Dr
.
12,000
Dr
.
Closing Balance 12,000
Dr
.
Rent Expenses Dr. Cr.
Date Particulars Amount
Amoun
t Balance
31-12-
2017 Rent Expenses 6,000 6,000
Dr
.
6,000
Dr
.
6,000
Dr
.
Closing Balance 6,000
Dr
.
Insurance Expenses Dr. Cr.
Date Particulars Amount
Amoun
t Balance
31-12-
2017 Insurance Expenses 4,000 4,000
Dr
.
4,000
Dr
.
4,000
Dr
.
Closing Balance 4,000 Dr

7INTRODUCTION TO ACCOUNTING
.
Accounts Payable Dr. Cr.
Date Particulars Amount Amount Balance
31-12-
2017 Opening Balance 12,000 12,000
Cr
.
12,000
Cr
.
12,000
Cr
.
Closing Balance 12,000
Cr
.
Unearned Service Revenue Dr. Cr.
Date Particulars Amount Amount Balance
31-12-
2017 Opening Balance 25,500 25,500
Cr
.
Unearned Revenue
Earned 7200 18,300
Cr
.
18,300
Cr
.
Closing Balance 18,300
Cr
.
Mortgage Payable Dr. Cr.
Date Particulars Amount Amount Balance
31-12-
2017 Opening Balance
1,00,00
0
1,00,00
0
Cr
.
1,00,00
0
Cr
.
1,00,00
0
Cr
.
Closing Balance
1,00,00
0
Cr
.
Tom Doherty, Capital Dr. Cr.
Date Particulars Amount Amount Balance
31-12- Opening Balance 6,60,00 6,60,00 Cr

8INTRODUCTION TO ACCOUNTING
2017 0 0 .
6,60,00
0
Cr
.
6,60,00
0
Cr
.
Closing Balance
6,60,00
0
Cr
.
Service Revenue Dr. Cr.
Date Particulars Amount Amount Balance
31-12-
2017 Opening Balance
2,57,20
0
2,57,20
0
Cr
.
Revenue Due 12,000
2,69,20
0
Cr
.
Earned Revenue 7,200
2,76,40
0
Cr
.
Closing Balance
2,76,40
0
Cr
.
Accrued Salaries Dr. Cr.
Date Particulars Amount Amount Balance
31-12-
2017 Salaries Due 3,000 3,000
Cr
.
3,000
Cr
.
3,000
Cr
.
Closing Balance 3,000
Cr
.
Trial Balance:
Cown Village Towel
Trial Balance
as t 31 December 2017
Dr. Cr.
Particulars Amount Amount
Cash at Bank 15,000
Accounts Receivable 30,000
Supplies 700
Prepaid Insurance 3,500

9INTRODUCTION TO ACCOUNTING
Prepaid Rent 6,000
Land 3,00,000
Building 4,50,000
Equipment 72,000
Accounts Payable 12,000
Unearned Service Revenue 18,300
Mortgage Payable 1,00,000
Tom Doherty, Capital 6,60,000
Tom Doherty, Drawings 23,000
Service Revenue 2,76,400
Salary Expense 68,000
Telephone Expense 24,000
Supplies Expense 2,500
Accrued Salaries 3,000
Depreciation on Building 50,000
Depreciation on Equipment 3,000
Accrued Service Revenue 12,000
Rent Expense 6,000
Insurance Expense 4,000
TOTAL 10,69,700 10,69,700
Statement of Change in Equity:
Cown Village Towel
Statement of Change in Owner's Equity
for the period ended 31 December 2017
Particulars Amount
($)
Op. Balance of Tom Doherty, Capital 6,60,000
Add: Profit for the period 1,18,900
7,78,900
Less: Tom Doherty, Drawings (23,000)
Cl. Balance of Tom Doherty, Capital 7,55,900
Income Statement:
Cown Village Towel
Income Statement
for the period ended 31 December 2017

10INTRODUCTION TO ACCOUNTING
Particulars Amount
($)
Revenue:
Service Revenue 2,76,400
Expenses:
Salary Expense (68,000)
Telephone Expense (24,000)
Supplies Expense (2,500)
Depreciation on Building (50,000)
Depreciation on Equipment (3,000)
Rent Expense (6,000)
Insurance Expense (4,000)
Profit for the period 1,18,900
Balance Sheet:
Cown Village Towel
Balance Sheet
as at 31 December 2017
Particulars Amount
Current Assets:
Cash at Bank 15,000
Accounts Receivable 30,000
Supplies 700
Accrued Service Revenue 12,000
Prepaid Insurance 3,500
Prepaid Rent 6,000
Total Current Assets 67,200
Non-Current Assets:
Land
3,00,00
0
Building
4,50,00
0
Equipment 72,000
Total Non-Current Assets
8,22,00
0
TOTAL ASSETS
8,89,20
0

11INTRODUCTION TO ACCOUNTING
Current Liabilities:
Accounts Payable 12,000
Unearned Service Revenue 18,300
Accrued Salaries 3,000
Total Current Liabilities 33,300
Non-Current Liabilities:
Mortgage Payable
1,00,00
0
Total Non-Current Liabilities
1,00,00
0
TOTAL LIABILITIES
1,33,30
0
NET ASSETS
7,55,90
0
Equity:
Tom Doherty, Capital
7,55,90
0
TOTAL EQUITY CAPITAL
7,55,90
0
Bibliography:
Henderson, S., Peirson, G., Herbohn, K. and Howieson, B., 2015. Issues in financial
accounting. Pearson Higher Education AU
Hoskin, R.E., Fizzell, M.R. and Cherry, D.C., 2014. Financial Accounting: a user
perspective. Wiley Global Education
Marshall, D., 2016. Accounting: What the numbers mean. McGraw-Hill Higher Education.
Warren, C.S. and Jones, J., 2018. Corporate financial accounting. Cengage Learning
Williams, J., 2014. Financial accounting. McGraw-Hill Higher Education