ACC5FAS - September Financial Statements and Analysis Report

This document presents a complete solution to an ACC5FAS financial accounting assignment, focusing on a toy distribution, sales, and repair business for the month of September 2019. It includes a detailed trial balance as of September 29, 2019, showcasing revenue, expenses, assets, liabilities, and equity. The solution further provides a comprehensive journal report detailing transactions throughout September, including adjustments for depreciation, accruals, and other financial activities. A profit and loss report for September 2019 is also included, which calculates the net profit, and a balance sheet as of September 30, 2019, which presents the company's assets, liabilities, and equity. Finally, the assignment analyzes key financial performance factors and ratios to assess the company's financial health, based on the provided financial statements. The student has used Xero software to generate all reports and statements.

Running head: ACC5FAS
ACC5FAS
Name of the Student:
Name of the University:
Author’s Note

1
ACC5FAS
Table of Contents
1. Trial Balance:...............................................................................................................................2
2. Journal Report 30th September:....................................................................................................3
3. Profit and Loss report 1st September 2019 to 30th September 2019:............................................9
4. Balance Sheet Report 30th September:.......................................................................................10
5. Financial performance factors:..................................................................................................12
References:....................................................................................................................................16

2
ACC5FAS
1. Trial Balance:
Trial Balance
20445520 BALA KEERTHI AVINASH PENTAREDDY
As at 29 September 2019
Account Debit Credit YTD Debit YTD
Credit
Revenue
Sales (200) $73,232.9
5
$1,56,442.
95
Expenses
Advertising (400) $8,850.00 $8,850.00
Bank Fees (404) $9.68 $9.68
Cost of Goods Sold (310) $33,728.5
2 $33,728.52
Fire Insurance expense (433) $0.00 $4,000.00
Freight & Courier (425) $116.42 $116.42
Fuel expense for the delivery van
(431) $880.00 $880.00
Insurance expense (434) $5,000.00 $5,000.00
Interest Expense (437) $0.00 $3,677.50
Miscellaneous office supplies
(430) $680.00 $680.00
Salaries expense (477) $0.00 $50,160.00
telecommunication expense (489) $0.00 $1,100.00
Warehouse rent expense (469) $0.00 $4,200.00
Warranty claims (401) $1,408.00 $1,408.00
Assets
Accounts Receivable (610) $8,176.36 $99,707.36
Allowance for Doubtful Debts
(611) $0.00 $8,321.00
Cash at bank (609) $25,575.8
6
$1,08,615.
35
Computer Equipment (720) $2,830.00 $2,830.00
Delivery Van (724) $0.00 $69,300.00
Interest-bearing account@2.5%
(622)
$50,000.0
0 $50,000.00
Inventory (630) $27,827.5
9 $82,593.51
Less Accumulated Depreciation -
Delivery Van (725) $0.00 $35,805.00

3
ACC5FAS
Less Accumulated Depreciation -
Store Building (723) $0.00 $2,72,250.
00
Plastic welding machinery (726) $38,000.0
0 $38,000.00
Prepaid Fire Insurance (620) $0.00 $20,000.00
Store Building (722) $0.00 $5,40,000.
00
Liabilities
Accounts Payable (800) $2,573.83 $59,555.13
GST (820) $3,842.79 $60,468.32
Loan payable - Building Head Office (900) $0.00 $2,75,812.
40
Northern Bank on a short-term loan (803) $40,000.0
0 $40,000.00
Provision for warranty (878) $0.00 $4,160.50
Texaco Petrol businesses debit card (802) $977.68 $977.68
Unearned delivery revenue (824) $26,800.0
0 $45,500.00
Equity
Owner A Share Capital (970) $0.00 $2,86,500.
00
Total $1,75,254.
84
$1,75,254.
84
$11,85,324
.66
$11,85,324
.66
2. Journal Report 30th September:
Journal Report
20445520 BALA KEERTHI AVINASH PENTAREDDY
From 30 Sep 2019 to 30 Sep 2019
ID 162 Insurance expense, Fire insurance (Manual Journal: Posted by bala
keerthi avinash pentareddy on 2 Oct 2019)
30 Sep
2019
Account Debit Credit
Fire Insurance expense (433) $2,200.00
Prepaid Fire Insurance (620) $2,200.00
$2,200.00 $2,200.00
ID 161 Telecommunication accrued for September (Manual Journal: Posted
by bala keerthi avinash pentareddy on 2 Oct 2019)
30 Sep
2019

4
ACC5FAS
Account Debit Credit
telecommunication expense (489) $605.00
Telecommunication payable (829) $605.00
$605.00 $605.00
ID 160 40% of deliveries are performed during September. (Manual Journal:
Posted by bala keerthi avinash pentareddy on 1 Oct 2019)
30 Sep
2019
Account Debit Credit
Unearned delivery revenue (824) $7,480.00
Sales (200) $7,480.00
$7,480.00 $7,480.00
ID 159 Interest expense accrued on the loan for Building of the Head Office
(Manual Journal: Posted by bala keerthi avinash pentareddy on 1 Oct 2019)
30 Sep
2019
Account Debit Credit
Interest Expense (437) $1,838.75
Interest payable (828) $1,838.75
$1,838.75 $1,838.75
ID 158 Depreciation expense Store Building, using the straight-line method
(Manual Journal: Posted by bala keerthi avinash pentareddy on 1 Oct 2019)
30 Sep
2019
Account Debit Credit
Depreciation (416) $2,250.00
Less Accumulated Depreciation - Store Building (723) $2,250.00
$2,250.00 $2,250.00
ID 157 Depreciation expense Delivery Van, using the straight-line method
(Manual Journal: Posted by bala keerthi avinash pentareddy on 1 Oct 2019)
30 Sep
2019
Account Debit Credit
Depreciation (416) $577.50
Less Accumulated Depreciation - Delivery Van (725) $577.50
$577.50 $577.50
ID 156 Warehouse rent expense accrued for September (Manual Journal:
Posted by bala keerthi avinash pentareddy on 1 Oct 2019)
30 Sep
2019
Account Debit Credit
Warehouse rent expense (469) $2,100.00
Warehouse rent payable (827) $2,100.00

5
ACC5FAS
$2,100.00 $2,100.00
ID 155 Salaries expense accrued for September (Manual Journal: Posted by
bala keerthi avinash pentareddy on 1 Oct 2019)
30 Sep
2019
Account Debit Credit
Salaries expense (477) $25,080.00
Wages Payable - Payroll (804) $25,080.0
0
$25,080.00 $25,080.0
0
ID 154 Estimate of doubtful debts is 10% of Accounts Receivable as at 30th
September (Manual Journal: Posted by bala keerthi avinash pentareddy on 1
Oct 2019)
30 Sep
2019
Account Debit Credit
Doubtful debts (415) $1,994.15
Allowance for Doubtful Debts (611) $1,994.15
$1,994.15 $1,994.15
ID 153 Provision for warranties (Manual Journal: Posted by bala keerthi
avinash pentareddy on 1 Oct 2019)
30 Sep
2019
Account Debit Credit
Warranty claims (401) $1,464.57
Provision for warranty (878) $1,464.57
$1,464.57 $1,464.57
ID 152 Advertising expense amount adjustment (Manual Journal: Posted by
bala keerthi avinash pentareddy on 1 Oct 2019)
30 Sep
2019
Account Debit Credit
Prepaid advertising (623) $8,112.50
Advertising (400) $7,375.00
GST (820) $737.50
$8,112.50 $8,112.50
ID 151 Invoice for a week’s (27 September to 29 September) fuel bill of $385
incl. GST from Texaco Petrol (Manual Journal: Posted by bala keerthi
avinash pentareddy on 1 Oct 2019)
30 Sep
2019
Account Debit Credit

6
ACC5FAS
Fuel expense for the delivery van (431) $350.00
Texaco Petrol businesses debit card (802) $350.00
$350.00 $350.00
ID 150 Reversed: Invoice for a week’s (27 September to 29 September) fuel
bill of $385 incl. GST from Texaco Petrol (Manual Journal: Posted by bala
keerthi avinash pentareddy on 1 Oct 2019) Reversal of #149
30 Sep
2019
Account Debit Credit
Fuel expense for the delivery van (431) $350.00
Texaco Petrol businesses debit card (802) $385.00
GST (820) $35.00
$385.00 $385.00
ID 149 Invoice for a week’s (27 September to 29 September) fuel bill of $385
incl. GST from Texaco Petrol (Manual Journal: Posted by bala keerthi
avinash pentareddy on 1 Oct 2019)
30 Sep
2019
Account Debit Credit
Fuel expense for the delivery van (431) $350.00
Texaco Petrol businesses debit card (802) $385.00
GST (820) $35.00
$385.00 $385.00
ID 148 Interest earned at month end (Manual Journal: Posted by bala keerthi
avinash pentareddy on 1 Oct 2019)
30 Sep
2019
Account Debit Credit
Interest receivable (614) $104.17
Interest Income (270) $104.17
$104.17 $104.17
ID 147 Reversed: Interest earned at month end (Manual Journal: Posted by
bala keerthi avinash pentareddy on 1 Oct 2019) Reversal of #146
30 Sep
2019
Account Debit Credit
Interest Income (270) $104.17
Interest receivable (614) $104.17
$104.17 $104.17
ID 146 Interest earned at month end (Manual Journal: Posted by bala keerthi
avinash pentareddy on 1 Oct 2019)
30 Sep
2019

7
ACC5FAS
Account Debit Credit
Interest Income (270) $104.17
Interest receivable (614) $104.17
$104.17 $104.17
ID 145 Depreciation expense – computer (Manual Journal: Posted by bala
keerthi avinash pentareddy on 1 Oct 2019)
30 Sep
2019
Account Debit Credit
Depreciation (416) $1,379.50
Less Accumulated Depreciation on Computer Equipment (721) $1,379.50
$1,379.50 $1,379.50
ID 144 Depreciation expense – plastic welding machinery (Manual Journal:
Posted by bala keerthi avinash pentareddy on 1 Oct 2019)
30 Sep
2019
Account Debit Credit
Depreciation (416) $669.09
Less Accumulated Depreciation - Plastic welding machinery (727) $669.09
$669.09 $669.09
ID 143 Office supplies on hand (Manual Journal: Posted by bala keerthi
avinash pentareddy on 1 Oct 2019)
30 Sep
2019
Account Debit Credit
Office supplies on hand (613) $310.00
Miscellaneous office supplies (430) $310.00
$310.00 $310.00
ID 142 Reversed: Office supplies on hand (Manual Journal: Posted by bala
keerthi avinash pentareddy on 1 Oct 2019) Reversal of #141
30 Sep
2019
Account Debit Credit
Office supplies on hand (613) $370.00
Miscellaneous office supplies (430) $370.00
$370.00 $370.00
ID 141 Office supplies on hand (Manual Journal: Posted by bala keerthi
avinash pentareddy on 1 Oct 2019)
30 Sep
2019
Account Debit Credit
Office supplies on hand (613) $370.00
Miscellaneous office supplies (430) $370.00

8
ACC5FAS
$370.00 $370.00
ID 140 Completed 30% of Toy repairs for ThinkFun Toys during September
(Manual Journal: Posted by bala keerthi avinash pentareddy on 1 Oct 2019)
30 Sep
2019
Account Debit Credit
Unearned delivery revenue (824) $3,600.00
Other Revenue (260) $3,600.00
$3,600.00 $3,600.00
ID 139 First month of subscription revenue earned from the company
featured magazine, “Humpty Dumpty” (Manual Journal: Posted by bala
keerthi avinash pentareddy on 1 Oct 2019)
30 Sep
2019
Account Debit Credit
Unearned delivery revenue (824) $2,466.66
Other Revenue (260) $2,466.66
$2,466.66 $2,466.66
ID 138 Insurance expense – product liability insurance policy (Manual
Journal: Posted by bala keerthi avinash pentareddy on 1 Oct 2019)
30 Sep
2019
Account Debit Credit
Product liability insurance policy (612) $3,333.34
Insurance expense (434) $3,333.34
$3,333.34 $3,333.34
ID 137 Reversed: Insurance expense – product liability insurance policy
(Manual Journal: Posted by bala keerthi avinash pentareddy on 1 Oct 2019)
Reversal of #136
30 Sep
2019
Account Debit Credit
Product liability insurance policy (612) $3,667.00
Insurance expense (434) $3,667.00
$3,667.00 $3,667.00
ID 136 Insurance expense – product liability insurance policy (Manual
Journal: Posted by bala keerthi avinash pentareddy on 1 Oct 2019)
30 Sep
2019
Account Debit Credit
Product liability insurance policy (612) $3,667.00
Insurance expense (434) $3,667.00
$3,667.00 $3,667.00

9
ACC5FAS
ID 135 Reversed: Insurance expense – product liability insurance policy
(Manual Journal: Posted by bala keerthi avinash pentareddy on 1 Oct 2019)
Reversal of #134
30 Sep
2019
Account Debit Credit
Product liability insurance policy (612) $1,833.00
Insurance expense (434) $1,833.00
$1,833.00 $1,833.00
ID 134 Insurance expense – product liability insurance policy (Manual
Journal: Posted by bala keerthi avinash pentareddy on 1 Oct 2019)
30 Sep
2019
Account Debit Credit
Product liability insurance policy (612) $1,833.00
Insurance expense (434) $1,833.00
$1,833.00 $1,833.00
ID 133 Interest expense – short-term loan (Northern Bank) (Manual Journal:
Posted by bala keerthi avinash pentareddy on 1 Oct 2019)
30 Sep
2019
Account Debit Credit
Interest Expense (437) $266.67
Northern Bank on a short-term loan (803) $266.67
$266.67 $266.67
3. Profit and Loss report 1st September 2019 to 30th September 2019:
Profit and Loss
20445520 BALA KEERTHI AVINASH
PENTAREDDY
1 September 2019 to 30 September 2019
30 Sep 19
Income
Interest Income $104.17
Other Revenue $6,066.66
Sales $80,712.9
5
Total Income $86,883.7
8

10
ACC5FAS
Less Cost of Sales
Cost of Goods Sold $33,728.5
2
Total Cost of Sales $33,728.5
2
Gross Profit $53,155.2
6
Less Operating Expenses
Advertising $1,475.00
Bank Fees $9.68
Depreciation $4,876.09
Doubtful debts $1,994.15
Fire Insurance expense $2,200.00
Freight & Courier $116.42
Fuel expense for the delivery van $1,230.00
Insurance expense $1,666.66
Interest Expense $2,105.42
Miscellaneous office supplies $370.00
Salaries expense $25,080.0
0
telecommunication expense $605.00
Warehouse rent expense $2,100.00
Warranty claims $2,872.57
Total Operating Expenses $46,700.9
9
Net Profit $6,454.27
4. Balance Sheet Report 30th September:
Balance Sheet
20445520 BALA KEERTHI AVINASH PENTAREDDY
As at 30 September 2019
30 Sep
2019
Assets
Current Assets
Accounts Receivable $99,707.36
Allowance for Doubtful Debts -$10,315.15

11
ACC5FAS
Cash at bank $1,08,615.3
5
Interest receivable $104.17
Interest-bearing account@2.5% $50,000.00
Inventory $82,593.51
Office supplies on hand $310.00
Prepaid advertising $8,112.50
Prepaid Fire Insurance $17,800.00
Product liability insurance policy $3,333.34
Total Current Assets $3,60,261.0
8
Fixed Assets
Computer Equipment $2,830.00
Less Accumulated Depreciation on
Computer Equipment -$1,379.50
Delivery Van $69,300.00
Less Accumulated Depreciation - Delivery
Van -$36,382.50
Less Accumulated Depreciation - Plastic
welding machinery -$669.09
Less Accumulated Depreciation - Store
Building
-
$2,74,500.0
0
Plastic welding machinery $38,000.00
Store Building $5,40,000.0
0
Total Fixed Assets $3,37,198.9
1
Total Assets $6,97,459.9
9
Liabilities
Current Liabilities
Accounts Payable $59,555.13
GST -$59,730.82
Interest payable $1,838.75
Northern Bank on a short-term loan $40,266.67
Provision for warranty $5,625.07
Telecommunication payable $605.00
Texaco Petrol businesses debit card $1,327.68
Unearned delivery revenue $31,953.34
Wages Payable - Payroll $25,080.00
Warehouse rent payable $2,100.00
Total Current Liabilities $1,08,620.8