BACT105 Business Accounting Assessment 3 – Individual Business Report

ASSESSMENT DESCRIPTION:

Yolanda Renner is a small company named as Beautiful Mind Book (BMB) operating within a small suburb of NSW. The company is a retailer of books i.e. BMB buy books and sell them to the customers at a profit. It uses perpetual inventory system. The post-closing Trial Balance as of 31 March 2021of BMB along with some additional transactions that took place in the month of April is given below:

Required:
Based on the above information:
1) Complete the whole accounting cycle for the company (i.e. Journalize the transactions in the journal, prepare adjusted Trial Balance, Income Statement, Statement of Equity and Balance Sheet.) Please ensure that the given answer should be in the form of report and must include discussion on the following:
2) What is an accounting cycle? Is every company required to complete it?
3) Explain the purpose, content, format and practical applications of all the financial statements generated as a result of completing an accounting cycle?
4) What is the role of double entry system in the accounting cycle?
5) What is the role of ethics while an accounting cycle is being completed?
6) What support does the financial information generated by completing an accounting cycle provides to the management in their decision making?
7) Provide a recommendation whether using perpetual inventory system (currently being used) will be ideal for the company.