Balance sheet practice exercise PDF

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Practice exercise for balance sheet...

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BU1002/BU1902 – Accounting for Decision Making

Workshop – Topic 3: Balance Sheet

Suggested Solution: Workshop Exercise 2.1 JILL JORDAN’S EVENT MANAGEMENT SERVICES Required: A. Use these items to prepare a balance sheet similar to the one in figure 2.2. (Note that a major item is missing in the list.) B. Recast the statement to present it in narrative form as in figure 2.3. Suggested Solution: A. JILL JORDAN’S EVENT MANAGEMENT SERVICES BALANCE SHEET AS AT 31 MARCHI 2013 CURRENT ASSETS Cash – 66,000 Accounts receivable – 72,000 Office supplies – 18,000

CURRENT LIABILITIES Accounts payable – 64,000 64,000 Total Current Liabilities 156,000 NON-CURRENT LIABILITIES Mortgage payable – 580,000

Total Current Assets NON-CURRENT ASSETS Building – 600,000 Land – 240,000 Office equipment – 120,000

Total Non-Current Liabilities

960,000 Total Non-Current Assets Total Assets

EQUITY Capital – 472,000

1,116,000$

B. JILL JORDAN’S EVENT MANAGEMENT BALANCE SHEET AS AT 31 MARCH 2013 CURRENT ASSETS $ Cash – 66,000 Accounts Receivable – 72,000 Office supplies – 18,000 156,000 NON-CURRENT ASSETS Building – 600,000 Land – 240,000 Office equipment – 120,000

644,000

472,000$

BU1002/BU1902 – Accounting for Decision Making

Workshop – Topic 3: Balance Sheet

1,116,000 TOTAL ASSETS CURRENT LIABILITIES Accounts Payable – 64,000 64,000 NON-CURRENT LIABILITIES Mortgage payable – 580,000 644,000 TOTAL LIABILITIES NET ASSETS

472,000$

EQUITY $ TOTAL EQUITY

472,000$

Q 2.12

PEBBLE BEACH CARAVAN PARK BALANCE SHEET AS AT 30 JUNE 2014 CURRENT ASSETS Cash – 20,000 Accounts receivable – 8,000 Office supplies on hand– 15,000

CURRENT LIABILITIES Accounts payable – 87,000 87,000 Total Current Liabilities 43,000 NON-CURRENT LIABILITIES

Total Current Assets NON-CURRENT ASSETS Building – 500,000 Other equipment purchased – 63,000

Total Non-Current Liabilities Net Assets – 439,000

EQUITY Income from cabins – 272,000 Income from camping – 185,000

87,000

BU1002/BU1902 – Accounting for Decision Making

Workshop – Topic 3: Balance Sheet

457,000 Expenses other – 45,000 Supplies used – 71,000 Salaries – 220,000 563,000 Total Non-Current Assets Total Assets

Profit 121,000 Capital – 318,000

606,00$

B. PEBBLE BEACH CARAVAN PARK BALANCE SHEET AS AT 30 JUNE 2014 CURRENT ASSETS $ Cash – 66,000 Accounts Receivable – 72,000 Office supplies – 18,000 156,000 NON-CURRENT ASSETS Building – 600,000 Land – 240,000 Office equipment – 120,000

1,116,000 TOTAL ASSETS CURRENT LIABILITIES Accounts Payable – 64,000 64,000 NON-CURRENT LIABILITIES Mortgage payable – 580,000 644,000 TOTAL LIABILITIES NET ASSETS

472,000$

EQUITY $ TOTAL EQUITY

472,000$...