Management Accounting: Financial Position and Earnings Statement

Running head: MANAGEMENT ACCOUNTING
Management Accounting
Name of the Student:
Name of the University:
Author’s Note:

1
MANAGEMENT ACCOUNTING
Table of Contents
Requirement 1:.................................................................................................................................2
Statement of Financial Position:..................................................................................................2
Statement of Earnings:.................................................................................................................3
Requirement 2:.................................................................................................................................4
Reference.........................................................................................................................................6
Appendix..........................................................................................................................................7
Journal Entries:............................................................................................................................7
Adjustment Worksheet:...............................................................................................................8
Depreciation Computation:........................................................................................................10
Inventory Value:........................................................................................................................10

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MANAGEMENT ACCOUNTING
Requirement 1:
Statement of Financial Position:
Particulars Amount Amount
Current Assets:
Cash $14,73,178
Accounts Receivable $34,600
Prov. For Bad & Doubtful Debts -$10,250
Prepaid Insurance $125
Inventory $2,92,100
TOTAL CURRENT ASSETS $17,89,753
Non-Current Assets:
Machinery $73,280
Accum. Depr. - Machinery -$53,184 $20,096
Furniture & Fixtures $98,000
Accum. Depr. - Furniture & Fixtures -$46,500 $51,500
Computer & Printers $8,750
Accum. Depr. - Computer & Printers -$2,625 $6,125
Patent $6,500
Accum. Amort. - Patent -$325 $6,175
TOTAL NON-CURRENT ASSETS $83,896
TOTAL ASSETS $18,73,649
Current Liabilities:
Accounts Payable $23,500
Dividends Payable $16,000
Accrued Wages $7,917
Tax Payable $4,05,893
Unearned Revenue $3,000
TOTAL CURRENT LIABILITIES $4,56,310
TOTAL NON-CURRENT LIABILITIES $0
TOTAL LIABILITIES $4,56,310
NET ASSETS $14,17,339
Capital:
Contributed Capital $98,000
Retained Earnings $1,08,410
Add: Net Profit $12,10,929 $13,19,339
TOTAL CAPITAL $14,17,339
In the books of....
Balance Sheet
as on 31 December 2017

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MANAGEMENT ACCOUNTING
Statement of Earnings:
Particulars Amount Amount
Revenue-Food $28,72,000
Revenue-Beverages $2,86,000
TOTAL REVENUE $31,58,000
Purchases-Food $7,72,600
Purchases-Beverages $87,380
Total Purchases $8,59,980
Add: Opening Inventory $75,900
Cost of Goods Available for Sale $9,35,880
Less: Closing Stock $2,92,100
Cost of Goods Sold -$6,43,780
GROSS PROFIT $25,14,220
Operating Expenses:
Salaries & Wages Expense -$7,04,154
Marketing Expense -$13,500
Repairs & Maintenance -$6,380
Rent Expense -$75,360
Linens Laundry Expense -$21,350
Property Tax Expense -$6,750
Utilities Expense -$15,396
Insurance Expenses -$2,875
Depreciation Expense -$27,924
Amortization Expenses -$325
Bad Debt Expense -$18,650
Waste Removal Expense -$6,984
TOTAL OPERATING EXPENSES -$8,99,647
NET PROFIT BEFORE TAX $16,14,573
Less: Income Tax -$4,03,643
NET PROFIT FOR THE PERIOD $12,10,929
In the books of....
Income Statement
for the period ending 31 December 2017