Jolly Amusements: Financial Statements and Journal Analysis

This assignment requires a comprehensive analysis of Jolly Amusements' financial records for January. The tasks include checking journal authorizations, reconciling the bank account, and preparing a bank reconciliation statement. Students are expected to total and balance the journals, post entries to the general ledger, prepare a trial balance, and generate both an income statement and a balance sheet. The provided journals, including general, sales, purchases, and cash receipts, require careful review and correction of errors, especially regarding the inclusion of bank interest and GST. The assignment emphasizes understanding the accounting cycle, from journal entries to financial statement preparation, and requires accurate calculations and adherence to accounting principles. The student is required to correct the existing journals, post them to the general ledger, and prepare a trial balance, income statement, and balance sheet. The solution should include all necessary calculations and adjustments to ensure the financial statements accurately reflect the company's performance and financial position. The assignment highlights the importance of correct journal entries and their impact on the final financial statements, providing a practical application of accounting principles.

include your totals in your journals, I have attached a file that should help you make
corrections where needed, there has been a carry on effect from errors early in the
assignment
Add the bank interest/expense to the cash payments and cash receipts etc. and check
calculations
Areas Marked need to be Looked over and corrected
Jolly Amusements commenced operations in January with a minigolf course and games
parlour. The accounts manager (Jenny Chee) has kept a full set of journals which are
shown below. You are required to:
a) Check that all journals have been properly authorised in accordance with the
Organisational Policies and Procedures. Add the name of the authoriser if not already
included. (Note: The Organisational Policies and Procedures require that journals be
signed and dated by the accounts manager prior to being posted to the General
ledger.)
b) Reconcile the bank account and prepare a Bank Reconciliation Statement as at
31January 2018
c) Total and balance the journals as required.
d) Post the journals to the General Ledger accounts.
e) Prepare the Trial balance as at 31 January 2018.
f) Prepare the Income Statement for the period ended 31 January 2018 on the template
provided.
g) Preapare the Balance Sheet as at 31 January 2018 on the template provided.
General Journal Correct Debit
21.01.18 Motor vehicle 10,500
Equipment at cost 700
Capital 11,200
(Owner
introduced assets
into the business)
23.01.18 Equipment at cost 1,500

GST paid 150
Accounts payable
(Purchased equipment on credit)
31.01.18 Accounts receivable 10
Late Fee Revenue
(Late fee charged on GDT Pty Ltd
account )
Authorised:
Jenny Chee
31.01.18
Sales Journal Correct
Date Invoice no. Sold to: Sales*
GST
collected
Accounts
receivable
05.01.18 1214
Solid Solutions
Ltd 1020.00 102.00 1122.00
09.01.18 1256 Allens Accounting 620.00 62.00 682.00
10.01.18 1259
Gumby Footy
Club 755.00 75.50 830.50
11.01.18 CN554 Allens Accounting -40.00 -4.00 -44.00
15.01.18 1285 GDT Pty Ltd 230.00 23.00 253.00
24.01.18 1304 S Smith 154.00 15.40 169.40
31.01.18 1324 Goodfield SHS 140.00 14.00 154.00
Totals 2892.00 287.90 3166.90
Authorised:
Jenny Chee
31.01.18
* All credit sales include GST.
Purchases Journal Correct
Date Invoice no. Bought from: Purchases GST paid
Accounts
payable

04.01.18 100471 CocaCola Ltd 485.00 48.50 533.50
04.01.18 56594
Donaldsons
Dairy 124.00 0 124.00
05.02.18 2201
Allens
Confection 260.00 26.00 286.00
07.01.18 567
Allens
Confection -20.00 -2.00 -22.00
08.01.18 5546 Clear Springs 155.00 0 155.00
13.01.18 56594
Donaldsons
Dairy 146.00 5.50 151.50
15.01.18 102484 CocaCola Ltd 845.00 84.50 929.50
19.01.18 44494 CocaCola Ltd -42.00 -4.20 -46.20
20.01.18 8997 Gmart Golf 62.00 6.20 68.20
30.01.18 56657
Donaldsons
Dairy 180.00 18.00 198.00
Totals 2195.00 182.50 2377.50
Authorised
: Jenny
Chee
31.01.18

Cash Receipts Journal * Cash sales include GST Free sales and taxable sales. Areas Marked yellow need fixing
Date Ref no. Particulars
Folio/
account GST Collected Sales*
Other
accounts
Accounts
receivable
Discount
Allowed Bank
06.01.18 215 Cash sales Sales 142.00 1510.00 1,652.00
08.01.18 216 Cash sales Sales 135.00 1,410.50 1,545.50
10.01.18 217 Cash sales Sales 5.00 50.00
12.01.18 218 Cash sales Sales 36.40 387.20 478.60
13.01.18 219 Rent received Rent 110.00 1,100.00 1,210.00
14.01.18 220 Solid Solutions A/C Rec 1122.00 1,122.00
18.01.18 221 Cash sales Sales 62.50 690.10 752.60
21.01.18 222
Gumby Football
Cl A/C Rec 830.50 830.50
22.01.18 223 Cash sales Sales 40.00 400.00 440.00
28.01.18 224 S Smith A/C Rec 169.40 169.4
29.01.18 225 Cash sales Sales 35.00 380.00 584.40
30.01.18 226
Owner
contribution Capital 2,000.00 2,000.00
31.01.18 227 Cash sales Sales 121.00 1,245.00 1,366.00
From bank
statement
excluding
contra entries Deposits 7315.78 7315.78
Totals 686.9 6072.8 10415.78 2121.9 19521.78

tmp8yre40jx.doc
Cash Payments Journal Areas Marked yellow need fixing
Date Ref no. Particulars
Folio/
Account GST Paid
Purch
ases
Other
accounts
Accounts
payable
Discount
Received Bank
01.01.18 45 Coles Purchases 35.60 384.20 419.80
04.01.18 46 Ready Realty Rent paid 100.00
1,000.
00 1,100.00
11.01.18 47 CocaCola Ltd A/C Pay 533.50 533.50
11.01.18 48 Telephone Telephone 32.40 324.00 356.40
11.01.18 49 Donaldsons Dairy A/C Pay 124.00 124.00
13.01.18 50 Cash purchases Purchases 4.30 43.00 47.30
13.01.18 51 Wages Wages 430.00 430.00
14.01.18 52 Clear Springs Various -0.50 155.00 -5.00 149.50
22.01.18 53 CocaCola Ltd A/C Pay 883.30 883.30
26.01.18 54
Gmart Golf -
Clubs Equipment 230.00 2,300.00 2,530.00
27.01.18 55 Wages Wages 510.00 510.00
31.01.18 56 Donaldsons Dairy A/C Pay 198.00 198.00
From B/S
excluding
contra entries 844.3 844.3
Totals 401.8 1427.2 4408.3 1893.8 8126.1

The Bank
Statement for
January 2018
Jolly
Amusements
2018 Withdrawals Deposits Balance
1 Jan Opening balance 25,154.68 Cr
4 Jan Deposit 1,256.00 26,410.68 Cr
4 Jan Withdrawal - Chq 000043 176.00 26,234.68 Cr
5 Jan Withdrawal – Chq 000045 419.80 25,814.88 Cr
7 Jan Deposit 1,652.00 27,466.88 Cr
9 Jan Deposit 1,545.50 29,012.38 Cr
12 Jan Withdrawal – Chq 000047 533.50 28,478.88 Cr
12 Jan Withdrawal – Chq 000046 1,100.00 27,378.88 Cr
12 Jan Deposit 478.60 27,857.48 Cr
12 Jan Withdrawal – Chq 000048 356.40 27,501.08 Cr
13 Jan Withdrawal – Chq 000049 124.00 27,377.08 Cr
13 Jan Deposit 1210.00 28,587.08 Cr
15 Jan Withdrawal – Chq 000051 430.00 28,157.08 Cr
15 Jan Deposit 1122.00 29,279.08 Cr
17 Jan Withdrawal – Chq 000052 149.50 29,129.58 Cr
18 Jan Direct debit Loan – The 230.00 28,899.58 Cr

tmp8yre40jx.doc
Bank
21 Jan Deposit 752.60 29,652.18 Cr
21 Jan Deposit 830.50 30,482.68 Cr
22 Jan Deposit 440.00 30,922.68 Cr
27 Jan Withdrawal – Chq 000054 2,530.00 28,392.68 Cr
29 Jan Deposit 584.40 28,977.08 Cr
31 Jan Bank charges 18.50 28,958.58 Cr
31 Jan Withdrawal – Chq 000055 510.00 28,448.58 Cr
31 Jan Interest on account 22.28 28,470.86 Cr

tmp8yre40jx.doc
Total 6577.7 9893.88

Bank Reconciliation as at 31/12/2017
Balance as per Bank Statement $25,154.68
Plus Outstanding Deposits
31.12.17 1,256.00
26,410.68
Less Unpresented Cheques
Chq no. 000043 176.00
Balance as per GL $26,234.68
c) Bank Reconciliation as at 31/01/2018
Balance as per Bank Statement 28470.86
Plus Outstanding Deposits 3,366
Less Unpresented Cheques
CHQ 50 $47.30
CHQ 53 $883.30
CHQ 56 $198

Balance as per GL 30,707.40
d) General Ledger accounts
Account Name: Cash at bank
Date Details Folio Debit Credit Balance
01/01/0
1 Opening balance 25154.68 dr
31.01.1
8
Cash payments CPJ 8126.1 17028.58 dr
31.01.1
8
Cash receipts CRJ 19521.78 36550.36 dr
add amts From the Bank statement

Account Name: Accounts receivable
Date Details Folio Debit Credit Balance
01.01.1
8 Opening balance 1410.00 dr
31.01.1
8
Credit sales SJ 3166.9 4576.9 dr
31.01.1
8
Collections made CRJ 2121.9 2455 dr
Account Name: Equipment at cost
Date Details Folio Debit Credit Balance
01.01.1
8 Opening balance 12,870.00 dr
21.1.18 Capital GJ 700 13570 dr
23.1.18 A/c Payable GJ 1500 15070dr
26.1.18 CPJ 2300 17370dr
Account Name: Motor Vehicles at cost
Date Details Folio Debit Credit Balance
21.1.28 Capital GJ 10500 10500 dr