Accounting & Financial Management: Bookkeeping Project & Analysis

This accounting and financial management project provides a comprehensive solution to a bookkeeping assignment for a small business. It begins with detailed journal entries for the month, including explanations for each transaction. The project then moves on to posting all transactions to T-accounts, followed by the creation of a trial balance and the preparation of financial statements, including a profit and loss statement and a balance sheet. The assignment further analyzes the business by indicating the amount of dividends paid, assessing the business's sustainability, and providing actionable suggestions for improving the bottom line. The project includes a complete set of references and a bibliography, along with an appendix containing supporting documentation. This project is a valuable resource for students studying financial accounting and provides a practical understanding of bookkeeping principles and financial statement analysis.

Running head: ACCOUNTING & FINANCIAL MANAGEMENT
Accounting & Financial Management
Name of the Student:
Name of the University:
Authors Note:

ACCOUNTING & FINANCIAL MANAGEMENT
1
Table of Contents
1. Journal Entries for the month with brief explanation:...........................................................2
2. Posting all transactions to the T-Account:.............................................................................5
3. Posting Trial balance and Financial Statements:.................................................................12
4a. Indicating how much dividends have been paid:...............................................................15
4b. Indicating whether the business is sustainable:..................................................................15
4c. Providing a clear and executable suggestions of how the business can improve the bottom
line:...........................................................................................................................................16
References and Bibliography:..................................................................................................17
Appendix:.................................................................................................................................18

ACCOUNTING & FINANCIAL MANAGEMENT
2
1. Journal Entries for the month with brief explanation:
Date Order Role Account Dr Cr
1-Apr 1 Dr Organisational Costs 500.00
1 Cr Cash 500.00
Payment made to Law-Barristers & Solicitots
Date Order Role Account Dr Cr
1-Apr 2 Dr Cash 5000.00
2 Cr Shareholders' Equity 5000.00
Contribution of Bob Thoron to the business
Date Order Role Account Dr Cr
1-Apr 4 Dr Prepaid Rent 300.00
4 Cr Cash 300.00
Paid rent in advance
Date Order Role Account Dr Cr
1-Apr 5 Dr Prepaid Insurance 1500.00
5 Cr Cash 1500.00
Paid insurance premium in advance
Date Order Role Account Dr Cr
1-Apr 6a Dr Equipment-Drill 600.00
6b Dr Equipment-Welder Kit 1200.00
6 Cr Cash 1800.00
Purchased equipment Drill and Welder Kit
Date Order Role Account Dr Cr
1-Apr 7 Dr Offi ce Supplies 250.00
7 Cr Cash 250.00
Offi ce Supply purchased during the month
Date Order Role Account Dr Cr
30-Apr 7a Dr Offi ce Supplies Expense 100.00
7a Cr Offi ce Supplies 100.00
Offi ce supplies used during the month
Date Order Role Account Dr Cr
1-Apr 8 Dr Inventory 200.00
8 Cr Cash 100.00
8 Cr Accounts payable 100.00
Purchased inventory and paid 50% in cash
Date Order Role Account Dr Cr
30-Apr 8a Dr Cost of goods sold 100.00
8a Cr Inventory 100.00
Inventory used during the month
Date Order Role Account Dr Cr
1-Apr 9 Dr Prepaid Promotion (flyers) 250.00
9 Cr Cash 250.00
Purchased flyers for promotion
Date Order Role Account Dr Cr
30-Apr 9a Dr Promotion Expense (flyers) 50.00
9a Cr Prepaid Promotion (flyers) 50.00
Flyers used during the month

ACCOUNTING & FINANCIAL MANAGEMENT
3
Date Order Role Account Dr Cr
1-Apr 10 Dr Prepaid Promotion (posters) 250.00
10 Cr Cash 250.00
Purchased posters for promotion
Date Order Role Account Dr Cr
30-Apr 10a Dr Promotion Expense (posters) 125.00
10a Cr Prepaid Promotion (posters) 125.00
Posters used during the month
Date Order Role Account Dr Cr
1-Apr 11 Dr Supplies (durabond) 300.00
11 Cr Cash 300.00
Offi ce Supplies purchased
Date Order Role Account Dr Cr
30-Apr 11a Dr Supplies Expense 100.00
11a Cr Supplies (durabond) 100.00
Supplies durabond
Date Order Role Account Dr Cr
30-Apr 12 Dr Electrician Services Fee 550.00
12 Cr Cash 550.00
Paid the electrician for the services

ACCOUNTING & FINANCIAL MANAGEMENT
4
Date Order Role Account Dr Cr
17-Apr 13 Dr Cash 869.57
13 Dr Accounts Receivable 217.39
13 Dr Cash 108.70
13 Dr Advances from Customers 108.70
13 Cr Revenue 1304.35
Sales are conducted for both inventory and services
Date Order Role Account Dr Cr
30-Apr 13 Dr Cash 1130.43
13 Dr Accounts Receivable 282.61
13 Dr Cash 141.30
13 Dr Advances from Customers 141.30
13 Cr Revenue 1695.65
Sales are conducted for both inventory and services
Date Order Role Account Dr Cr
30-Apr 14 Dr Accounting service expenses 50.00
14 Cr Accounting Services Payable 50.00
Accountant services is being used without cash payments
Date Order Role Account Dr Cr
30-Apr 15 Dr Income Tax Expense 250.00
15 Cr Income Tax Payable 250.00
Income tax is not paid for the month
Date Order Role Account Dr Cr
30-Apr 16 Dr Phone Expense 175.00
16 Cr Phone Payable 175.00
phone expense payable
Date Order Role Account Dr Cr
17-Apr 17 Dr Bank Overdraft fees 400.00
17 Cr Cash 400.00
Cash paid to phone expense
Date Order Role Account Dr Cr
30-Apr 18 Dr Bank fees expenses 50.00
18 Cr Cash 50.00
Cash paid for bank fees

ACCOUNTING & FINANCIAL MANAGEMENT
5
Date Order Role Account Dr Cr
30-Apr Dr Interest Expenses 50.00
Cr Interest Payable 50.00
Interest payable to Bob Thoron
Date Order Role Account Dr Cr
30-Apr Dr Rent Expense 100.00
Cr Prepaid Rent 100.00
rent paid for the month
Date Order Role Account Dr Cr
30-Apr Dr Insurance Expense 125.00
Cr Prepaid Insurance 125.00
Insurance paid for the month
Date Order Role Account Dr Cr
30-Apr Dr Depreciation Expense Drill 25.00
Cr Accumulated Depreciation Drill 25.00
Depreciation accounted for the month on Drill
Date Order Role Account Dr Cr
30-Apr Dr Depreciation Expense Welder Kit 50.00
Cr Accumulated Depreciation Welder Kit 50.00
Depreciation accounted for the month on Kit
Adjusting Entries
2. Posting all transactions to the T-Account:
Dr Amount Cr Amount
Shareholders' Equity 5000 Organisational Costs 500.00
Revenue 2250.00 Prepaid Rent 300.00
Advances from Customers 250.00 Prepaid Insurance 1500.00
Equipment-Drill 600.00
Equipment-Welder Kit 1200.00
Offi ce Supplies 250.00
Inventory 100.00
Prepaid Promotion (flyers) 250.00
Prepaid Promotion (posters) 250.00
Supplies (durabond) 300.00
Electrician Services Fee 550.00
Bank Overdraft fees 400.00
Bank fees expenses 50.00
Balance c/d 1250.00
7500.00 7500.00
Cash

ACCOUNTING & FINANCIAL MANAGEMENT
6
Dr Amount Cr Amount
Revenue 217.39
Revenue 282.61 Balance c/d 500.00
500.00 500.00
Dr Amount Cr Amount
Balance c/d 25.00 Depreciation Expense Drill 25.00
25.00 25.00
Dr Amount Cr Amount
Balance c/d 50.00 Depreciation Expense Welder Kit 50.00
50.00 50.00
Dr Amount Cr Amount
Cash 600.00 Balance c/d 600.00
600.00 600.00
Dr Amount Cr Amount
Cash 1200.00 Balance c/d 1200.00
1200.00 1200.00
Dr Amount Cr Amount
Cash 100.00 Cost of goods sold 100.00
Accounts payable 100.00 Balance c/d 100.00
200.00 100.00
Equipment-Welder Kit
Inventory
Accounts Receivable
Accumulated Depreciation Drill
Accumulated Depreciation Welder Kit
Equipment-Drill

ACCOUNTING & FINANCIAL MANAGEMENT
7
Dr Amount Cr Amount
Cash 500.00 Balance c/d 500.00
500.00 500.00
Dr Amount Cr Amount
Cash 1500.00 Insurance Expense 125.00
Balance c/d 1375.00
1500.00 1500.00
Dr Amount Cr Amount
Cash 300.00 Rent Expense 100.00
Balance c/d 200.00
300.00 300.00
Dr Amount Cr Amount
Cash 250.00 Offi ce Supplies Expense 100.00
Balance c/d 150.00
250.00 250.00
Dr Amount Cr Amount
Cash 250.00 Promotion Expense (flyers) 50.00
Balance c/d 200.00
250.00 250.00
Dr Amount Cr Amount
Cash 250.00 Promotion Expense (posters) 125.00
Balance c/d 125.00
250.00 250.00
Dr Amount Cr Amount
Cash 300.00 Supplies Expense 200.00
Balance c/d 100.00
300.00 300.00
Offi ce Supplies
Organisational Costs
Prepaid Insurance
Prepaid Rent
Prepaid Promotion (flyers)
Prepaid Promotion (posters)
Supplies (durabond)

ACCOUNTING & FINANCIAL MANAGEMENT
8
Dr Amount Cr Amount
Balance c/d 50.00 Accounting service expenses 50.00
50.00 50.00
Dr Amount Cr Amount
Balance c/d 100.00 Inventory 100.00
100.00 100.00
Dr Amount Cr Amount
Balance c/d 250.00 Revenue 250.00
250.00 250.00
Dr Amount Cr Amount
Balance c/d 175.00 Dividends 175.00
175.00 175.00
Dr Amount Cr Amount
Balance c/d 250.00 Income Tax Expense 250.00
250.00 250.00
Dr Amount Cr Amount
Balance c/d 50.00 Insurance Expense 50.00
50.00 50.00
Dr Amount Cr Amount
Balance c/d 175.00 Phone Expense 175.00
175.00 175.00
Phone Payable
Accounting Services Payable
Accounts payable
Advances from Customers
Dividends Payable
Income Tax Payable
Interest Payable

ACCOUNTING & FINANCIAL MANAGEMENT
9
Dr Amount Cr Amount
Cash 2250.00
Accounts Receivable 500.00
Balance c/d 2750.00
2750.00 2750.00
Dr Amount Cr Amount
Dividends 175.00 Balance c/d 175.00
175.00 175.00
Revenue
Dividends
Dr Amount Cr Amount
Balance c/d 5000.00 Cash 5000.00
5000.00 5000.00
Dr Amount Cr Amount
Profit and Loss A/c 350.00 Dividends 175.00
Balance c/d 175.00
350.00 350.00
Dr Amount Cr Amount
Revenue 2750.00 Accounting service expenses 50.00
Bank fees expenses 50.00
Bank Overdraft fees 400.00
Cost of goods sold 100.00
Depreciation Expense Drill 25.00
Depreciation Expense Welder Kit 50.00
Electrician Services Fee 50.00
Income Tax Expense 250.00
Insurance Expense 125.00
Offi ce Supplies Expense 100.00
Phone Expense 175.00
Promotion Expense (flyers) 50.00
Promotion Expense (posters) 125.00
Rent Expense 100.00
Supplies Expense 200.00
Interest Expenses 50.00
Web Expenses 500.00
Profit 350.00
2750.00 2750.00
Shareholders' Equity
Retained Earnings
Profit and Loss A/c

ACCOUNTING & FINANCIAL MANAGEMENT
10
Dr Amount Cr Amount
Accounting Services Payable 50.00 Balance c/d 50.00
50.00 50.00
Dr Amount Cr Amount
Cash 50.00 Balance c/d 50.00
50.00 50.00
Dr Amount Cr Amount
Cash 400.00 Balance c/d 400.00
400.00 400.00
Dr Amount Cr Amount
Inventory 100.00 Balance c/d 100.00
100.00 100.00
Dr Amount Cr Amount
Accumulated Depreciation Drill 25.00 Balance c/d 25.00
25.00 25.00
Accounting service expenses
Bank fees expenses
Bank Overdraft fees
Cost of goods sold
Depreciation Expense Drill

ACCOUNTING & FINANCIAL MANAGEMENT
11
Dr Amount Cr Amount
Accumulated Depreciation Welder Kit 50.00 Balance c/d 50.00
50.00 50.00
Dr Amount Cr Amount
Cash 550.00 Balance c/d 550.00
550.00 550.00
Dr Amount Cr Amount
Income Tax Payable 250.00 Balance c/d 250.00
250.00 250.00
Dr Amount Cr Amount
Prepaid Insurance 125.00 Balance c/d 125.00
125.00 125.00
Dr Amount Cr Amount
Offi ce Supplies 100.00 Balance c/d 100.00
100.00 100.00
Dr Amount Cr Amount
Phone Payable 175.00 Balance c/d 175.00
175.00 175.00
Income Tax Expense
Insurance Expense
Office Supplies Expense
Phone Expense
Depreciation Expense Welder Kit
Electrician Services Fee