Prepare Journal Entries for the Transactions of Firestone Pty Ltd Case study

Assessment 3 Case Study

This case study will assess how well you understand and apply accounting theory and practice in assessing business performance. You must present a clear, logical and well-structured answer to the questions asked. This case study must be fully referenced.

Attention students: All work must be your own and fully referenced. For more information on how to reference go to: https://www.monash.edu/rlo/research-writing-assignments/referencing-and- academic-integrity/citing-and-referencing/how-to-cite-and-reference

Copying from ANY source can lead to serious Academic Misconduct Charges. Your submission must be completely your own work. If it is suspected that you have accessed or received assistance, e.g., from an electronic source or another person, the matter can be investigated as an alleged breach of the UOW College Academic Integrity and Student Conduct Policy, in accordance with the Procedure for Managing Alleged Student Misconduct.

This case study is worth 15% of your overall marks.

Each part is not related to others. Prepare an independent answers for every part below. Questions:

Part A: (Practical – 30 marks) Prepare journal entries for the transactions provided.

Part B: (Practical - 45 marks) Prepare a complete 10-columns worksheet, Closing entry, proper Income statement and Balance sheet for year ended 30 June 2021.

Total marks: 75

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Part A

Firestone Pty Ltd is a new company that has been established in 2021. Below are the transactions occurred for financial year 2022. Prepare a journal entries for each transaction on behalf of Firestone Pty Ltd. Ignore GST.

1. Owner has deposited $210,000 worth of Machinery and $13,000 cash into the business on 1 July
2. Bank has agreed to lend $2,700,000 loan that will be repaid in the next 9 The approval was signed on 15 July 2021 and the amount was received on the same day.
3. Provided a service to a customer on 1 August 2021 and was being paid $9,700 on the same day.
4. Engaging a tradesman for site maintenance On 12 August 2021, received a bill $6,500 due in September.
5. Purchased some office supplies on account on 30 August Total spend was $4,250.

6. On 14 September 2021, paid the bill owing for 12^th August maintenance.
7. A customer has provided an advance payment for the service to be provided in A total of $20,000 has been received on 1 December 2021.
8. On 31 January 2022, provided full service to the customer who has paid in
9. 3^rd March 2022, acquired new unit of equipment on The loan is estimated to be $75,000 and settlement is expected within 5 months.
10. Withdrew $32,000 from business account due to urgent personal matter on 5 April
11. Fully paid the equipment loan from 3^rd March event on 11 June 2022.
12. Recording the yearly depreciation for Equipment and On 30 June 2022, the amounts are $25,000 and $21,000 respectively.

Record the journal entries in chronological order and proper placement of Dr/Cr. The Journal template is available on Moodle. Please use it when answering PART A.

Part B

Raines Ltd is a catering company which was founded in 2016 and is growing significantly in current global pandemic situation. As a professional accountant, you have been hired to prepare its end of the year reports using the following information. The unadjusted Trial Balance at end of 30 June 2021 is as such:

When reviewing the end of year data, you discovered the following items are not yet recorded in the book.

1. Salary accrued for future settlement is $6,000.
2. Half of the unearned revenue has been
3. The owner injected additional fund of $50,750 and an equipment valued at $92,500 into the
4. Depreciation rates for Building and Equipment are 25% and 11% respectively using straight-line method with no residual/salvage
5. Insurance paid in advance on 1^st of January 2021 was partially

Instructions for PART B - prepare the following for Raines Ltd:

1. Complete a 10-columns Ignore GST.

• Adjusting and Adjusted Trial Balance columns (22 marks)
• Income Statement column in the worksheet and a separate proper Income statement for year ended 30 June 2021 (8 marks)
• Balance Sheet column in the worksheet and a separate Balance sheet statement for year ended 30 June 2021 (10 marks)

2. Closing entry (5 marks)

Total: 45 marks

The worksheet template is available for download on Moodle. Please use it when answering PART B.

Please note: All materials used that are not your own words need to be properly referenced. Harvard referencing style to be used in both in-text citation and bibliography.

You may write all of your responses in ONE word document (part A, B and C combined into one Word document) and upload to the submission link on Moodle.