Accounting Statement Analysis Homework - Finance Fundamentals

This homework assignment provides a comprehensive analysis of accounting statements, including a general journal, stock cards, and an income statement. The general journal details various transactions, such as expense payments, inventory purchases, capital introduction, and asset acquisitions, providing a clear record of financial activities. The stock cards, utilizing the First-in, First-out (FIFO) method, track the movement of inventory items like scissors, paper, and sticky tape, calculating the cost of goods sold and maintaining inventory balances. Furthermore, the assignment presents a revenue section of an income statement, demonstrating how sales revenue and cost of goods sold contribute to gross profit, showcasing a simplified view of the company's profitability. The document concludes with a bibliography citing relevant accounting resources, demonstrating a thorough understanding of financial accounting principles.

Running head: ACCOUNITNG STATEMENT ANALYSIS
Accounting Statement Analysis
Name of the Student:
Name of the University:
Author’s Note:

1ACCOUNTING STATEMENT ANALYSIS
Table of Contents
General Journal:...............................................................................................................................2
Stock Card:......................................................................................................................................4
Revenue section of Income Statement.............................................................................................6
Bibliography....................................................................................................................................7

2ACCOUNTING STATEMENT ANALYSIS
General Journal:
STACKS PTY LTD
General Journal
Date Explanations Debit Credit
2-Jun-19 Electricity expense $ 650
Cash $ 650
(To record payment of electricity
expenses)
3-Jun-19 Telephone Expense $ 124
GST Paid $ 12
Telephone Expense Payable $ 136
(To record telephone expenses
payable)
4-Jun-19
Accounts payable-Waterhouse
Stationeries $ 500
Cash $ 500
(To record cash paid to Waterhouse
Stationeries)
8-Jun-19 Inventory $ 300
GST Paid $ 30
Accounts payable-Watrehouse
Stationery $ 330
(To record purchase of inventory)
9-Jun-19 Advertising expenses $ 132
Advertising expenses payable $ 132
(To record advertising expenses
payable)
18-Jun-19 Cash $ 40,000
Capital-Steven $ 40,000
(To record capital introduced by
Steven)
20-Jun-19 Advertising expenses payable $ 132
Cash $ 132
(To record payment of advertising
expenses)

3ACCOUNTING STATEMENT ANALYSIS
23-Jun-19 Drawings $ 16
Inventory $ 16
(To record inventory taken by
proprietor)
25-Jun-19
Accounts payable-Watrehouse
Stationery $ 330
Cash $ 330
(To record payment of cash to
Waterhouse Stationery)
26-Jun-19 Equipment $ 2,000
Furniture $ 1,500
GST Paid $ 350
Cash $ 3,850
(To record purchase of equipment
and furniture)
28-Jun-19 Telephone Expense Payable $ 136
Cash $ 136
(To record payment of telephone
bill)
30-Jun-19 Electricity Expense $ 429
Electricity Payable $ 429
(To record electricity expenses
payable)
30-Jun-19 Depreciation expense-Equipment $ 100
Accumulated depreciation-
Equipment $ 100
(To record depreciation expense on
equipment)

4ACCOUNTING STATEMENT ANALYSIS
Stock Card:
Inventory Card
Item Number:
Description: Scissors
Method: First-in First-out
In (Purchases) Out (COGS) Balance
Date Particula
rs
N
o
Un
it
Cos
t
Tota
l Cost
N
o
Unit
Cost
Total
Cost
No Unit
Cost
Total
Cost
6/8/201
9
Purchase
40
$
2.5
0
$
100.0
0
40 $ 2.50 $
100.0
0
6/15/201
9 Sales 50
$
2.50
$
125.00
Inventory Card
Item Number:
Description: Paper
Method: First-in First-out
In (Purchases) Out (COGS) Balance
Date Particula
rs
N
o
Un
it
Cos
t
Tota
l Cost
N
o
Unit
Cost
Total
Cost
No Unit
Cost
Total
Cost
6/8/201
9
Purchase
80
$
2.5
0
$
200.0
0
80 $ 2.50 $
200.0
0
6/15/201
9 Sales 10
$
2.50
$
25.00 70
$
2.50
$
175.0
0
6/16/201
9 Sales 30
$
2.50
$
75.00 40
$
2.50
$
100.0
0
6/23/202
0 Drawings 2
$
2.50
$
5.00 38
$
2.50
$
95.00

5ACCOUNTING STATEMENT ANALYSIS
Inventory Card
Item Number:
Description: Sticky Tape
Method: First-in First-out
In (Purchases) Out (COGS) Balance
Date Particula
rs
N
o
Un
it
Cos
t
Tota
l Cost
N
o
Unit
Cost
Total
Cost
No Unit
Cost
Total
Cost
6/15/20
19
Sales
5
$ 5.50 $
27.50
- 5 $ 5.50 $
(27.5
0)
6/17/201
9
Sales
10
$ 5.50 $
55.00
- 15
$ 5.50 $
(82.5
0)
6/23/201
9
Drawings
2
$ 5.50 $
11.00
- 17
$ 5.50 $
(93.5
0)

6ACCOUNTING STATEMENT ANALYSIS
Revenue section of Income Statement
STACKS PTY LTD
Income Statement
For the year ended.
Particulars Amount Amount
Revenue:
Sales revenue $ 795.00
Cost of goods sold $ (307.50)
Gross Profit $ 487.50
Expenses:
Total Expenses $ -
Net Profit $ 487.50

7ACCOUNTING STATEMENT ANALYSIS
Bibliography
Budding, T., Grossi, G., & Tagesson, T. (Eds.). (2014). Public sector accounting. Routledge.
Maynard, J. (2017). Financial accounting, reporting, and analysis. Oxford University Press.
Phillips, F., Libby, R., & Libby, P. (2015). Fundamentals of Financial Accounting. McGraw-Hill
Education.
Pratt, J. (2016). Financial accounting in an economic context. John Wiley & Sons.
Weygandt, J. J., Kimmel, P. D., & Kieso, D. E. (2019). Financial accounting. Wiley.
Williams, E. E., & Dobelman, J. A. (2017). Financial statement analysis. World Scientific Book
Chapters, 109-169.