Accounting Financial Analysis Report: July Data and Analysis

This comprehensive accounting financial analysis report presents a detailed overview of a company's financial performance. The report includes a general journal, which meticulously records all financial transactions, and a general ledger, which organizes these transactions by account. An adjusted trial balance ensures the accuracy of the accounting equation, followed by key financial statements. The income statement reveals the company's profitability, the statement of changes in equity tracks changes in owner's equity, and the balance sheet provides a snapshot of the company's assets, liabilities, and equity. The report covers July's financial activities, providing insights into revenue, expenses, and overall financial health, and also includes inventory analysis and depreciation calculations. The report is designed to provide a clear and concise understanding of the company's financial position.

Running head: ACCOUNTING FINANCIAL ANALYSIS REPORT
Accounting Financial Analysis Report
Name of the Student:
Name of the University:
Author’s Note:

1ACCOUNTING FINANCIAL ANALYSIS REPORT
Table of Contents
General Journal:...............................................................................................................................2
General Ledger:...............................................................................................................................6
Adjusted Trial Balance:.................................................................................................................19
Income Statement:.........................................................................................................................20
Statement of Change in Equity:.....................................................................................................22
Balance Sheet:...............................................................................................................................22
Bibliography:.................................................................................................................................24

2ACCOUNTING FINANCIAL ANALYSIS REPORT
General Journal:
General Journal
Post.
Date Account Ref. Debit Credit
1/7/2017 Prepaid Rent A/c. $6,000
GST Clearing A/c. $600
Cash at Bank A/c. $6,600
2/7/2017 Cash at Bank A/c. $12,160
Discount Allowed A/c. $582
GST Clearing A/c. $58
Accounts Receivable-
Musical Maestro A/c.
$12,800
6/7/2017
Inventory- Children
Acoustic A/c. $3,782
GST Clearing A/c. $378
Accounts Payable- Unique
Guitars A/c.
$4,160
8/7/2017 Loan Interest Payable A/c. $109
Cash at Bank A/c. $109
9/7/2017 Accounts Payable- Kids
Music A/c.
$6,000
Cash at Bank A/c. $5,820
Discount Received A/c. $164
GST Clearing A/c. $16
10/7/2017 Accounts Receivable-
Village Guitars A/c.
$8,200
Sales Revenue A/c. $7,455
GST Clearing A/c. $745
10/7/2017 Cost of Goods Sold A/c. $5,819
Inventory-Children's
Acoustic A/c.
$5,819

3ACCOUNTING FINANCIAL ANALYSIS REPORT
11/7/2017 Cash at Bank A/c. $5,000
Sales Revenue A/c. $4,545
GST Clearing A/c. $455
11/7/2017 Cost of Goods Sold A/c. $3,200
Inventory-Jazz Bass A/c. $3,200
13/7/2017 Cash at Bank A/c. $12,600
Accounts Receivable-
Electric Heaven A/c.
$12,600
13/7/2017 Sales Return & Allowances
A/c.
$909
GST Clearing A/c. $91
Accounts Receivable-
Village Guitars A/c.
$1,000
13/7/2017 Inventory Write Down
Expense A/c.
$640
Cost of Goods Sold A/c. $640
14/7/2017 Accounts payable A/c.-
Custom Guitars A/c.
$5,340
Cash at Bank A/c. $5,340
15/7/2017 Cash at Bank A/c. $7,200
Accounts Receivable-
Guitar Zone A/c. $7,200
16/7/2017 Equipment Repairs A/c. $100
GST Clearing A/c. $10
Cash at Bank A/c. $110
17/7/2017 Electricity Payable A/c. $150
Cash at Bank A/c. $150
17/7/2017 Telephone Payable A/c. $375
Cash at Bank A/c. $375
18/7/2017 Inventory- Adult Acoustic
A/c.
$1,680
Inventory- Flamenco A/c. $2,500
GST Clearing A/c. $418

4ACCOUNTING FINANCIAL ANALYSIS REPORT
Accounts Payable - Guitar
World A/c.
$4,598
19/7/2017 Accounts Receivable- Hard
Rock Guitars A/c.
$5,460
Sales Revenue A/c. $4,964
GST Clearing A/c. $496
19/7/2017 Cost of Goods Sold A/c. $4,550
Inventory- Standard
Fenders A/c.
$4,550
21/7/2017 Drawings A/c. $500
Cash at Bank A/c. $500
25/7/2017 Accountant Fees A/c. $300
Cleaning Charges A/c. $200
GST Clearing A/c. $50
Cash at Bank A/c. $550
31/7/2017 Wages A/c. $4,000
Cash at Bank A/c. $3,600
PAYG Payable A/c. $400
31/7/2017 Office Supplies Expense A/c. $336
Office Supplies A/c. $336
Depreciation Expense-
Equipment A/c. $75
Accumulated Depreciation-
Equipment A/c. $75
Depreciation Expense- Motor
Vehicle A/c. $417
Accumulated Depreciation-
Motor Vehicle A/c. $417
Depreciation Expense- Fixtures
A/c. $123
Accumulated Depreciation-
Furniture & Fixtures A/c. $123
Wages Expense A/c. $133

5ACCOUNTING FINANCIAL ANALYSIS REPORT
Wages Payable A/c. $133
Telephone Expenses A/c. $168
Electricity Expenses A/c. $353
GST Clearing A/c. $52
Telephone Payable A/c. $185
Electricity Payable A/c. $388
Loan Interest Expense A/c. $109
Loan Interest payable A/c. $109
Bank Fees A/c. $25
Cash at Bank A/c. $25
Bad Debt Expenses A/c. $3,500
Accounts Receivable- The
Instrument Learning Place A/c. $3,500
Inventory Gain/Loss A/c. $1,811
Inventory- Children Acoustic
A/c. $291
Inventory- Hollow Body Centre
A/c. $520
Inventory- Flamneco A/c. $1,000
Insurance A/c. $200
Prepaid Insurance A/c. $200
Advertising A/c. $400
Prepaid Advertising A/c. $400
Rent A/c. $2,000
Prepaid Rent A/c. $2,000
Profit & Loss Summary A/c. $29,310
Sales Return & Allowances $909
Cost of Goods Sold $12,929
Inventor Write Down Expense $640
Discount Allowed $582
Inventory Gain/Loss $1,811
Equipment Repairs $100
Accounting Fees $300
Advertising Expense $400

6ACCOUNTING FINANCIAL ANALYSIS REPORT
Bank Fees $25
Depreciation Expense $614
Electricity Expense $353
Insurance $200
Office Supplies Expense $336
Rent Expense $2,000
Telephone Expense $168
Wages Expense $4,133
Cleaning Charges $200
Loan Interest Expense $109
Bad Debt Expense $3,500
Sales Revenue $16,964
Discount Received $164
Capital - Jason Fender $12,182
Profit & Loss Summary A/c. $29,310
General Ledger:
General Ledger
CASH AT BANK 100
Post.
Date Explanation Ref. Debit Credit Balance
1-Jul Balance $48,556 Dr.
Prepaid Rent A/c. $6,000 $42,556 Dr.
GST Clearing A/c. $600 $41,956 Dr.
2-Jul Accounts Receivable-
Musical Maestro A/c.
$12,160 $54,116
Dr.
8-Jul Loan Interest Payable
A/c.
$109 $54,007
Dr.
9-Jul Accounts Payable-
Kids Music A/c.
$5,820 $48,187
Dr.
11-Jul Sales Revenue A/c. $4,545 $52,732 Dr.
GST Clearing A/c. $455 $53,187 Dr.
13-Jul Accounts Receivable-
Electric Heaven A/c.
$12,600 $65,787
Dr.
14-Jul Accounts payable A/c.-
Custom Guitars A/c.
$5,340 $60,447
Dr.
15-Jul Accounts Receivable-
Guitar Zone A/c.
$7,200 $67,647
Dr.

7ACCOUNTING FINANCIAL ANALYSIS REPORT
16-Jul Equipment Repairs
A/c.
$100 $67,547
Dr.
GST Clearing A/c. $10 $67,537 Dr.
17-Jul Electricity Payable A/c. $150 $67,387 Dr.
17-Jul Telephone Payable
A/c.
$375 $67,012
Dr.
21-Jul Drawings A/c. $500 $66,512 Dr.
25-Jul Accountant Fees A/c. $300 $66,212 Dr.
Cleaning Charges A/c. $200 $66,012 Dr.
GST Clearing A/c. $50 $65,962 Dr.
31-Jul Wages A/c. $3,600 $62,362 Dr.
31-Jul Bank Fees A/c. $25 $62,337 Dr.
$62,337 Dr.
$62,337 Dr.
$62,337 Dr.
$62,337 Dr.
$62,337 Dr.
OFFICE SUPPLIES ON HAND 101
Post.
Date Explanation Ref. Debit Credit Balance
1-Jul Balance $1,317 Dr.
31-Jul Office Supplies
Expense A/c.
$336 $981
Dr.
$981 Dr.
$981 Dr.
ACCOUNTS RECEIVABLE CONTROL 102
Post.
Date Explanation Ref. Debit Credit Balance
1-Jul Balance $47,600 Dr.
2-Jul Cash at Bank A/c. $12,160 $35,440 Dr.
Discount Allowed A/c. $582 $34,858 Dr.
GST Clearing A/c. $58 $34,800 Dr.
10-Jul Sales Revenue A/c. $7,455 $42,255 Dr.
GST Clearing A/c. $745 $43,000 Dr.
13-Jul Cash at Bank A/c. $12,600 $30,400 Dr.
13-Jul Sales Return &
Allowances A/c.
$909 $29,491
Dr.
GST Clearing A/c. $91 $29,400 Dr.
15-Jul Cash at Bank A/c. $7,200 $22,200 Dr.
19-Jul Sales Revenue A/c. $4,964 $27,164 Dr.
GST Clearing A/c. $496 $27,660 Dr.

8ACCOUNTING FINANCIAL ANALYSIS REPORT
31-Jul Bad Debt Expenses
A/c.
$3,500 $24,160
Dr.
$24,160 Dr.
$24,160 Dr.
$24,160 Dr.
$24,160 Dr.
INVENTORY 112
Post.
Date Explanation Ref. Debit Credit Balance
1-Jul Balance $46,400 Dr.
6-Jul Accounts Payable-
Unique Guitars A/c.
$3,782 $50,182
Dr.
10-Jul Cost of Goods Sold
A/c.
$5,819 $44,363
Dr.
11-Jul Cost of Goods Sold
A/c.
$3,200 $41,163
Dr.
18-Jul Accounts Payable -
Guitar World A/c.
$4,180 $45,343
Dr.
19-Jul Cost of Goods Sold
A/c.
$4,550 $40,793
Dr.
31-Jul Inventory Gain/Loss
A/c.
$1,811 $38,982
Dr.
$38,982 Dr.
$38,982 Dr.
PREPAID ADVERTISING 104
Post.
Date Explanation Ref. Debit Credit Balance
1-Jul Balance $1,600 Dr.
31-Jul Advertising A/c. $400 $1,200 Dr.
$1,200 Dr.
$1,200 Dr.
$1,200 Dr.
PREPAID INSURANCE 106
Post.
Date Explanation Ref. Debit Credit Balance
1-Jul Balance $2,400 Dr.
31-Jul Insurance A/c. $200 $2,200 Dr.
$2,200 Dr.
$2,200 Dr.
$2,200 Dr.

9ACCOUNTING FINANCIAL ANALYSIS REPORT
PREPAID RENT 107
Post.
Date Explanation Ref. Debit Credit Balance
1-Jul Cash at Bank A/c. $6,000 $6,000 Dr.
31-Jul Rent A/c. $2,000 $4,000 Dr.
$4,000 Dr.
$4,000 Dr.
$4,000 Dr.
$4,000 Dr.
$4,000 Dr.
FURNITURE AND FIXTURES – AT COST 160
Post.
Date Explanation Ref. Debit Credit Balance
7-Jan Balance $4,908 Dr.
$4,908 Dr.
$4,908 Dr.
$4,908 Dr.
$4,908 Dr.
ACCUMULATED DEPRECIATION – FURNITURE
AND FIXTURES 161
Post.
Date Explanation Ref. Debit Credit Balance
1-Jul Balance $982 Cr.
31-Jul Depreciation Expense-
Fixtures A/c.
$123 $1,105
Cr.
$1,105 Cr.
$1,105 Cr.
OFFICE EQUIPMENT - AT COST 170
Post.
Date Explanation Ref. Debit Credit Balance
1-Jul Balance $3,335 Dr.
$3,335 Dr.
$3,335 Dr.

10ACCOUNTING FINANCIAL ANALYSIS REPORT
$3,335 Dr.
$3,335 Dr.
ACCUMULATED DEPRECIATION – OFFICE
EQUIPMENT 171
Post.
Date Explanation Ref. Debit Credit Balance
1-Jul Balance $1,334 Cr.
31-Jul Depreciation Expense-
Equipment A/c.
$75 $1,409
Cr.
$1,409 Cr.
$1,409 Cr.
$1,409 Cr.
$1,409 Cr.
MOTOR VEHICLES – AT COST 180
Post.
Date Explanation Ref. Debit Credit Balan
ce
1-Jul Balance 25,000
25,000
25,000
25,000
25,000
25,000
ACCUMULATED DEPRECIATION – MOTOR
VEHICLES 181
Post.
Date Explanation Ref. Debit Credit Balance
1-Jul Balance $9,984 Cr.
31-Jul Depreciation Expense-
Motor Vehicle A/c.
$417 $10,401
Cr.
$10,401 Cr.
$10,401 Cr.
$10,401 Cr.
$10,401 Cr.
$10,401 Cr.

11ACCOUNTING FINANCIAL ANALYSIS REPORT
ACCOUNTS PAYABLE CONTROL 200
Post.
Date Explanation Ref. Debit Credit Balance
1-Jul Balance $43,400 Cr.
6-Jul Inventory- Children
Acoustic A/c.
$3,782 $47,182
Cr.
GST Clearing A/c. $378 $47,560 Cr.
9-Jul Cash at Bank A/c. $5,820 $41,740 Cr.
Discount Received
A/c.
$164 $41,576
Cr.
GST Clearing A/c. $16 $41,560 Cr.
14-Jul Cash at Bank A/c. $5,340 $36,220 Cr.
18-Jul Inventory- Adult
Acoustic A/c.
$1,680 $37,900
Cr.
Inventory- Flamenco
A/c.
$2,500 $40,400
Cr.
GST Clearing A/c. $418 $40,818 Cr.
$40,818 Cr.
$40,818 Cr.
$40,818 Cr.
$40,818 Cr.
$40,818 Cr.
$40,818 Cr.
TELEPHONE PAYABLE 201
Post.
Date Explanation Ref. Debit Credit Balance
1-Jul Balance $375 Cr.
17-Jul Cash at Bank A/c. $375 $0
31-Jul Telephone Expenses
A/c.
$168 $168
GST Clearing A/c. $17 $185
ELECTRICITY PAYABLE 202
Post.
Date Explanation Ref. Debit Credit Balance
1-Jul Balance $150 Cr.
17-Jul Cash at Bank A/c. $150 $0 Cr.
31-Jul Electricity Expenses
A/c.
$353 $353
Cr.
GST Clearing A/c. $35 $388 Cr.
$388 Cr.

12ACCOUNTING FINANCIAL ANALYSIS REPORT
GST CLEARING 212
Post.
Date Explanation Ref. Debit Credit Balance
1-Jul Balance $1,391 Cr.
Cash at Bank A/c. $600 $791 Cr.
2-Jul Accounts Receivable-
Musical Maestro A/c.
$58 $733
Cr.
6-Jul Accounts Payable-
Unique Guitars A/c.
$378 $355
Cr.
9-Jul Accounts Payable-
Kids Music A/c.
$16 $371
Cr.
10-Jul Accounts Receivable-
Village Guitars A/c.
$745 $1,116
Cr.
11-Jul Cash at Bank A/c. $455 $1,571 Cr.
13-Jul Accounts Receivable-
Village Guitars A/c.
$91 $1,480
Cr.
16-Jul Cash at Bank A/c. $10 $1,470 Cr.
18-Jul Accounts Payable -
Guitar World A/c.
$418 $1,052
Cr.
19-Jul Accounts Receivable-
Hard Rock Guitars A/c.
$496 $1,548
Cr.
25-Jul Cash at Bank A/c. $50 $1,498 Cr.
31-Jul Telephone Payable
A/c.
$17 $1,482
Cr.
Electricity Payable A/c. $35 $1,446 Cr.
$1,446 Cr.
$1,446 Cr.
$1,446 Cr.
$1,446 Cr.
WAGE PAYABLE 204
Post.
Date Explanation Ref. Debit Credit Balance
31-Jul Wages Expense A/c. $133 $133
$133 0
$133 0
$133 0
PAYG PAYABLE 205
Post.
Date Explanation Ref. Debit Credit Balance
1-Jul Balance $1,200 Cr.

13ACCOUNTING FINANCIAL ANALYSIS REPORT
31-Jul Wages A/c. $400 $1,600 Cr.
$1,600 Cr.
$1,600 Cr.
$1,600 Cr.
LOAN INTEREST PAYABLE 206
Post.
Date Explanation Ref. Debit Credit Balance
1-Jul Balance $109 Cr.
8-Jul Cash at Bank A/c. $109 $0 Cr.
31-Jul Loan Interest Expense
A/c.
$109 $109
Cr.
$109 Cr.
$109 Cr.
$109 Cr.
BANK LOAN 650
Post.
Date Explanation Ref. Debit Credit Balance
7-Jan Balance $34,800 Cr.
$34,800 Cr.
$34,800 Cr.
CAPITAL – JASON FENDER 300
Post.
Date Explanation Ref. Debit Credit Balance
7-Jan Balance $87,391 Cr.
$87,391 Cr.
$87,391 Cr.
$87,391 Cr.
DRAWINGS – JASON FENDER 301
Post.
Date Explanation Ref. Debit Credit Balance
21-Jul Cash at Bank A/c. $500 $500 Dr.
$500 Dr.
PROFIT AND LOSS SUMMARY 700
Post.
Date Explanation Ref. Debit Credit Balance
31-Jul Total Expenses $29,310 $29,310 Dr.
Total Revenue $17,127 $12,182 Dr.

14ACCOUNTING FINANCIAL ANALYSIS REPORT
Net Loss Transferred $12,182
SALES REVENUE 400
Post.
Date Explanation Ref. Debit Credit Balance
10-Jul Accounts Receivable-
Village Guitars A/c.
$7,455 $7,455
Cr.
11-Jul Cash at Bank A/c. $4,545 $12,000 Cr.
19-Jul Sales Revenue A/c. $4,964 $16,964 Cr.
$16,964 Cr.
$16,964 Cr.
$16,964 Cr.
31-Jul Transferred to P/L A/c. $16,964
DISCOUNT RECEIVED 401
Post.
Date Explanation Ref. Debit Credit Balance
9-Jul Accounts Payable-
Kids Music A/c.
$164 $164
Cr.
$164 Cr.
31-Jul Transferred to P/L A/c. $164
SALES RETURNS AND ALLOWANCES 419
Post.
Date Explanation Ref. Debit Credit Balance
13-Jul Accounts Receivable-
Village Guitars A/c.
$909 $909
Dr.
$909 Dr.
$909 Dr.
31-Jul Transferred to P/L A/c. $909
INVENTORY LOSS 445
Post.
Date Explanation Ref. Debit Credit Balance
31-Jul Inventory- Children
Acoustic A/c.
$291 $291
Dr.
Inventory- Hollow
Body Centre A/c.
$520 $811
Dr.
Inventory- Flamneco
A/c.
$1,000 $1,811
Dr.
$1,811 Dr.
$1,811 Dr.
$1,811 Dr.
31-Jul Transferred to P/L A/c. $1,811
COST OF GOODS SOLD 500

15ACCOUNTING FINANCIAL ANALYSIS REPORT
Post.
Date Explanation Ref. Debit Credit Balance
10-Jul Inventory-Children's
Acoustic A/c.
$5,819 $5,819
Dr.
11-Jul Inventory-Jazz Bass
A/c.
$3,200 $9,019
Dr.
13-Jul Inventory Write Down
Expense A/c.
$640 $8,379
Dr.
19-Jul Inventory- Standard
Fenders A/c.
$4,550 $12,929
Dr.
$12,929 Dr.
31-Jul Transferred to P/L A/c. $12,929
INVENTORY WRITE DOWN EXPENSE
5
01
Post.
Date Explanation Ref. Debit Credit Balance
13-Jul Cost of Goods Sold
A/c.
$
640
$
640 Dr.
$640 Dr.
$640 Dr.
31-Jul Transferred to P/L A/c. $640
DISCOUNT ALLOWED 502
Post.
Date Explanation Ref. Debit Credit Balance
1-Jul Accounts Receivable-
Musical Maestro A/c.
$582 $582
Dr.
$582 Dr.
31-Jul Transferred to P/L A/c. $582
EQUIPMENT REPAIRS 600
Post.
Date Explanation Ref. Debit Credit Balance
16-Jul Cash at Bank A/c. $100 $100 Dr.
$100 Dr.
$100 Dr.
31-Jul Transferred to P/L A/c. $100
ACCOUNTING FEES 601
Post.
Date Explanation Ref. Debit Credit Balance
25-Jul Cash at Bank A/c. $300 $300 Dr.
$300 Dr.
31-Jul Transferred to P/L A/c. $300
ADVERTISING EXPENSE 602
Post.

16ACCOUNTING FINANCIAL ANALYSIS REPORT
Date Explanation Ref. Debit Credit Balance
31-Jul Prepaid Advertising
A/c.
$400 $400
Dr.
$400 Dr.
31-Jul Transferred to P/L A/c. $400
BANK FEES 603
Post.
Date Explanation Ref. Debit Credit Balance
31-Jul Cash at Bank A/c. $25 $25 Dr.
$25 Dr.
$25 Dr.
31-Jul Transferred to P/L A/c. $25
DEPRECIATION EXPENSE – FURNITURE AND
FIXTURES 604
Post.
Date Explanation Ref. Debit Credit Balance
31-Jul Accumulated
Depreciation-
Furniture & Fixtures
A/c.
$123 $123
Dr.
$123 Dr.
31-Jul Transferred to P/L A/c. $123
DEPRECIATION EXPENSE – OFFICE EQUIPMENT 605
Post.
Date Explanation Ref. Debit Credit Balance
31-Jul Accumulated
Depreciation-
Equipment A/c.
$75 $75
Dr.
$75 Dr.
$75 Dr.
31-Jul Transferred to P/L A/c. $75
DEPRECIATION EXPENSE – MOTOR VEHICLES 606
Post.
Date Explanation Ref. Debit Credit Balance
31-Jul Accumulated
Depreciation- Motor
Vehicle A/c.
$417 $417
Dr.
$417 Dr.
31-Jul Transferred to P/L A/c. $417
ELECTRICITY EXPENSE 607
Post.
Date Explanation Ref. Debit Credit Balance
31-Jul Electricity Expenses
A/c.
$353 $353
Dr.

17ACCOUNTING FINANCIAL ANALYSIS REPORT
$353 Dr.
31-Jul Transferred to P/L A/c. $353
INSURANCE
EXPENSE 608
Post.
Date Explanation Ref. Debit Credit Balance
31-Jul Prepaid Insurance A/c. $200 $200 Dr.
$200 Dr.
31-Jul Transferred to P/L A/c. $200
OFFICE SUPPLIES EXPENSE 609
Post.
Date Explanation Ref. Debit Credit Balance
31-Jul Office Supplies A/c. $336 $336 Dr.
$336 Dr.
$336 Dr.
31-Jul Transferred to P/L A/c. $336
RENT EXPENSE 610
Post.
Date Explanation Ref. Debit Credit Balance
31-Jul Prepaid Rent A/c. $2,000 $2,000 Dr.
$2,000 Dr.
31-Jul Transferred to P/L A/c. $2,000
TELEPHONE EXPENSE 611
Post.
Date Explanation Ref. Debit Credit Balance
31-Jul Telephone Payable
A/c.
$168 $168
Dr.
$168 Dr.
31-Jul Transferred to P/L A/c. $168
WAGES EXPENSE 612
Post.
Date Explanation Ref. Debit Credit Balance
31-Jul Cash at Bank A/c. $3,600 $3,600 Dr.
PAYG Payable A/c. $400 $4,000 Dr.
31-Jul Wages Payable A/c. $133 $4,133 Dr.
$4,133 Dr.
$4,133 Dr.
$4,133 Dr.
31-Jul Transferred to P/L A/c. $4,133
CLEANING CHARGES 613
Post.
Date Explanation Ref. Debit Credit Balance

18ACCOUNTING FINANCIAL ANALYSIS REPORT
25-Jul Cash at Bank A/c. $200 $200 Dr.
$200 Dr.
31-Jul Transferred to P/L A/c. $200
LOAN INTEREST 614
Post.
Date Explanation Ref. Debit Credit Balance
31-Jul Loan Interest payable
A/c.
$109 $109
Dr.
$109 Dr.
31-Jul Transferred to P/L A/c. $109
BAD DEBT EXPENSE 615
Post.
Date Explanation Ref. Debit Credit Balance
31-Jul Accounts Receivable-
The Instrument
Learning Place A/c.
$3,500 $3,500
Dr.
$3,500 Dr.
31-Jul Transferred to P/L A/c. $3,500
Adjusted Trial Balance:
Guitar Garden
Adjusted Trial Balance
As at 31st July 2017
$ $
Current Assets
Cash at Bank $62,337
Office Supplies in hand $981
Accounts Receivable $24,160
Inventory $38,982
Prepaid Advertising $1,200
Prepaid Insurance $2,200
Prepaid Rent $4,000
Non-Current Assets
Furniture & Fixtures - At Cost $4,908
Accumulated Depreciation - Furniture & $1,105

19ACCOUNTING FINANCIAL ANALYSIS REPORT
Fixtures
Office Equipent - at Cost $3,335
Accumulated Depreciation - Office Equipment $1,409
Motor Vehicle - at Cost $25,000
Accumulated Depreciation - Motor Vehicle $10,401
Current Liabilities
Acconts Payable $40,818
Telephone Payable $185
Electricity Payable $388
GST Clearing $1,446
Wages Payable $133
PAYG Payable $1,600
Loan Interest Payable $109
Non-Current Liabilities
Bank Loan $34,800
Equity
Capital - Jason Fender $87,391
Drawings - Jason Fender $500
Revenue
Sales Revenue $16,964
Discount Received $164
Expenses
Sales Return & Allowances $909
Cost of Goods Sold $12,929
Inventor Write Down Expense $640
Discount Allowed $582
Inventory Gain/Loss $1,811
Equipment Repairs $100
Accounting Fees $300
Advertising Expense $400
Bank Fees $25
Depreciation Expense $614
Electricity Expense $353
Insurance $200

20ACCOUNTING FINANCIAL ANALYSIS REPORT
Office Supplies Expense $336
Rent Expense $2,000
Telephone Expense $168
Wages Expense $4,133
Cleaning Charges $200
Loan Interest Expense $109
Bad Debt Expense $3,500
TOTAL
$196,91
2
$196,91
2
Income Statement:
Guitar Garden
Income Statement
for the month ending 31st July 2017
Particular Amount Amount
Sales Revenue $16,964
Sales Return & Allowances ($909)
Net Sales $16,055
Cost of Goods Sold $12,929
Gross Profit $3,125
Add: Other revenue
Discount Received $164
TOTAL REVENUE $3,289
Less: EXPENSES
Inventor Write Down Expense ($640)
Discount Allowed ($582)
Inventory Gain/Loss ($1,811)
Equipment Repairs ($100)
Accounting Fees ($300)
Advertising Expense ($400)
Bank Fees ($25)
Depreciation Expense ($614)

21ACCOUNTING FINANCIAL ANALYSIS REPORT
Electricity Expense ($353)
Insurance ($200)
Office Supplies Expense ($336)
Rent Expense ($2,000)
Telephone Expense ($168)
Wages Expense ($4,133)
Cleaning Charges ($200)
Loan Interest Expense ($109)
Bad Debt Expense ($3,500)
Net Profit/(Loss) for the Period ($12,182)
Statement of Change in Equity:
Guitar Garden
Statement of Changes in Equity
for the month ending 31st July 2017
Particular Amount Amount
Capital as at 1 July 2017 $87,391
Add: Net Profit for the period ($12,182)
Less: Drawings ($500)
Capital as at 31 July 2017 $74,709
Balance Sheet:
Guitar Garden
Statement of Financial Position
as at 31st July 2017
Current Assets Amount Amount
Cash at Bank $62,337

22ACCOUNTING FINANCIAL ANALYSIS REPORT
Office Supplies in hand $981
Accounts Receivable $24,160
Inventory $38,982
Prepaid Advertising $1,200
Prepaid Insurance $2,200
Prepaid Rent $4,000
TOTAL CURRENT ASSETS $133,86
0
Non-Current Assets
Furniture & Fixtures - At Cost $4,908
Accumulated Depreciation - Furniture &
Fixtures ($1,105) $3,803
Office Equipent - at Cost $3,335
Accumulated Depreciation - Office
Equipment ($1,409) $1,926
Motor Vehicle - at Cost $25,000
Accumulated Depreciation - Motor Vehicle ($10,401) $14,599
TOTAL NON-CURRENT ASSETS $20,329
TOTAL ASSETS $154,18
8
Current Liabilities
Acconts Payable $40,818
Telephone Payable $185
Electricity Payable $388
GST Clearing $1,446
Wages Payable $133
PAYG Payable $1,600
Loan Interest Payable $109
TOTAL CURRENT LIABILITIES $44,679
Non-Current Liabilities:
Bank Loan $34,800
TOTAL LIABILITIES $79,479
Owners’ Equity $74,709
TOTAL LIABILITIES AND OWNERS’
EQUITY $154,18
8

23ACCOUNTING FINANCIAL ANALYSIS REPORT

24ACCOUNTING FINANCIAL ANALYSIS REPORT
Bibliography:
Deegan, C., 2013. Financial accounting theory. McGraw-Hill Education Australia
Williams, J., 2014. Financial accounting. McGraw-Hill Higher Education