ACC566 - Accounting Records & Financial Statements: Flash Cleaning

This assignment solution demonstrates the preparation of accounting records for Flash Cleaning Services using spreadsheets. It includes journal entries for various transactions, followed by the creation of T-accounts to track debits and credits for accounts such as cash at bank, capital, loan payable, and service revenue. An unadjusted trial balance is then prepared, followed by an explanation of five types of adjusting entries with specific examples for Flash Cleaning Services, including accrued expenses, unearned revenue, and depreciation. The solution culminates in a ten-column worksheet, a profit and loss statement, a statement of change in equity, and a balance sheet, providing a complete financial overview of the company for the month of July 2018. Desklib offers more solved assignments and study resources for students.

Assessment item 1
Assignment 1

Question 1:
Preparation of accounting records – using spreadsheets
1: Journal Entries
Flash Cleaning Services
Journal Entries
Date Particulars Dr
July $
7/1/2018 Cash at bank $ 30,000.00
Capital-Sally Flash
(being capital invested by owner in business)
7/1/2018 Cash at bank $ 20,000.00
Loan Payable
(being loan taken from bank at 12% interest pa)
7/1/2018 Motor Vehicle $ 18,000.00
Cash at Bank
(motor vehicle purchased)
7/1/2018 Prepaid Insurance $ 3,600.00
Cash at bank
(Being insurance taken)
7/1/2018 Cleaning Equipment $ 4,800.00
Cash at bank
(being equipment purhased)
7/9/2018 Cleaning Supplies $ 2,400.00
Account Payable
(being supplies purchased)
7/13/2018 Cash at bank $ 500.00
Service Revenue
(being service provided to rainbow childcare)
7/20/2018 Wages $ 1,600.00
Cash at bank
(Wages paid)
7/25/2018 Cash at bank $ 5,500.00

7/27/2018 Account Payable $ 2,000.00
Cash at bank $ 2,000.00
(Amount paid to supplier)
7/31/2018 Interest on loan $ 300.00
Cash at bank $ 300.00
(Interest paid)
7/31/2018 Advertising Expenses $ 1,600.00
Cash at bank $ 1,600.00
$ 90,300.00 $ 90,300.00
(Davies & Crawford, 2011)
Formula view:

### Cash at bank ###
Service Revenue
(being service provided to rainbow childcare)

2: T-Accounts
Debit Flash Cleaning Services Credit
General Ledger for the period ending on July 2018
Cash at bank
01/07/18 Capital-Sally Flash $30,000 01/07/18 Motor Vehicle $18,000
01/07/18 Loan Payable $20,000 01/07/18 Prepaid Insurance $3,600
7/13/2018 Service Revenue $500 01/07/18 Cleaning Equipment $4,800
7/25/2018 $5,500 20/07/18 Wages $1,600
27/07/18 Account payable $2,000
31/07/18 Interest on loan $300
31/07/18 Advertising Expenses $1,600
31/07/18 Balance C/D $24,100
$56,000 $56,000
Unearned service
revenue
31/07/18 Advertising Expenses $1,600
31/07/18 Balance C/D $24,100
$56,000 $56,000
31/07/18 Balance C/D $24,100
31/07/18 Balance C/D $30,000
$30,000 $30,000
31/07/18 Balance C/D $30,000

31/07/18 Balance C/D $20,000
$20,000 $20,000
31/07/18 Balance C/D $20,000
01/07/18 Cash at bank $18,000
31/07/18 Balance C/D $18,000
$18,000 $18,000
31/07/18 Balance C/D $18,000
31/07/18 Balance C/D $3,600
$3,600 $3,600
31/07/18 Balance C/D $3,600
Cleaning Equipment
01/07/18 Cash at bank $4,800
31/07/18 Balance C/D $4,800
$4,800 $4,800
31/07/18 Balance C/D $4,800
7/9/2018 Account Payable $2,400
31/07/18 Balance C/D $2,400
$2,400 $2,400
31/07/18 Balance C/D $2,400

Account Payable
27/07/18 Cash at bank $2,000 7/9/2018 Cleaning Supplies $2,400
31/07/18 Balance C/D $400
$2,400 $2,400
Service Revenue
7/13/2018 Cash at bank $500
31/07/18 Balance C/D $500
Wages
20/07/18 Cash at bank $1,600
31/07/18 Balance C/D $1,600
Unearned service revenue
25/07/18 Cash at bank $5,500
31/07/18 Balance C/D $5,500
$5,500 $5,500
31/07/18 Balance C/D $300
$300 $300
31/07/18 Balance C/D $300

(Davies & Crawford, 2011)

Formula view of T-Accounts
Flash Cleaning Services Credit
Cash at bank
### ### ### $18,000
### Loan Payable ### ### $3,600
### $500 ### $4,800
### $5,500 ### Wages $1,600
### Account pay $2,000
### Interest on l $300
### Advertising $1,600
### Balance C/D $24,100
### $56,000
### Balance C/D ###
Capital-Sally Flash
### $30,000
### Balance C/D ###
De
bit General Ledger for the period
ending on July 2018
Capital-Sally
Flash
Motor
VehiclePrepaid
InsuranceService
Revenue
Cleaning
Equipment
Unearned
service
revenue
Cash at
bank
### Balance C/D $24,100
### $56,000
### Balance C/D ###
Capital-Sally Flash
### $30,000
Cash at
bank

### Balance C/D ###
### $30,000
### Balance C/D $30,000
### Balance C/D ###
### $20,000
### Balance C/D $20,000
Motor Vehicle
### Cash at bank ###
### Balance C/D $18,000
### $18,000
### Balance C/D ###
Prepaid Insurance
### Cash at bank $3,600
### Balance C/D $3,600
$3,600 $3,600
### Balance C/D $3,600

Cleaning Equipment
### Cash at bank $4,800
### Balance C/D $4,800
$4,800 $4,800
### Balance C/D $4,800
Cleaning Supplies
### $2,400
### Balance C/D $2,400
$2,400 $2,400
Account
Payable
### Balance C/D $2,400
Account Payable
### Cash at bank $2,000 ### $2,400
### Balance C/D $400
Cleaning
Supplies
Service Revenue
### $500
### Balance C/D $500
$500 $500
### Balance C/D $500
Cash at
bank

### Balance C/D $1,600
$1,600 $1,600
### Balance C/D $1,600
Unearned service revenue
### $5,500
Cash at
bank
$5,500 $5,500
### Balance C/D $5,500
Interest on loan
### Cash at bank $300
$300 $300
### Balance C/D $300
Advertising Expenses
### Cash at bank $1,600
3: Unadjusted Trial Balance
Flash Cleaning Services
Unadjusted Trial Balance
as at 31 July 18
Accounts Debit Credit
Cash at bank $ 24,100.00
Prepaid Insurance $ 3,600.00
Motor Vehicle $ 18,000.00
Cleaning Equipment $ 4,800.00
Cleaning Supplies $ 2,400.00
Capital-Sally Flash $ 30,000.00
Loan Payable $ 20,000.00
Account Payable $ 400.00