Introduction To Financial Accounting


Introduction To Financial Accounting

***Please Read*** The requirements for the assessment Complete the following two tasks. • Task 1 (20 marks) Dean Delivery Service completed the following transactions during its first month of operations for January 2019: 1. Dean started his own business by investing £25,000 cash and giving a truck valued at £50,000. 2. Insurance of £3,000 was paid in advance. 3. Performed delivery services for a customer and received £3,500 cash. 4. Completed a large delivery job, billed the customer £10,000, and received a promise to collect the £10,000 within one week. 5. Paid employee salary, £4,000. 6. Received £4,500 cash for performing delivery services. 7. Collected £2,500 in advance for delivery service to be performed later. 8. Collected £10,000 cash from a customer on account. 9. Dean withdrew £9,500 cash for his own personal use 10. Paid office rent £2,500. This rent is not paid in advance. 11. Performed delivery services on account, £4,000. 12. Purchased fuel for the truck, paying £500 in cash. Requirements 1. Record each transaction in the journal. (6 marks) (In this requirement, you have to prepare journal entries, which should appear separate from requirement 2 and 3). 2. Post the transactions that you recorded in requirement 1 to T-accounts and show the balances. (3 marks) 3. Prepare the trial balance for the month ended 31 January, 2019. (3 marks) (In this requirement, you are to prepare a stand-alone trial balance. 4. Record the following adjusting entries. (2 marks) a. Accrued salary expense, £4,000. b. Depreciation expense of Truck, £250. c. Prepaid insurance expired, £750. d.Performed services which were paid for in advance during January, £2000. 5. Prepare adjusted trial balance (2 marks) (In this requirement, you have to prepare a stand-alone adjusted trial balance. This requirement is separate from requirement 3). 6. Prepare Dean Delivery service’s statement of profit and loss and statement of Financial Position for the month ended 31 Jan 2019. (4 marks) (In this requirement, you have to prepare a stand-alone statement of Profit and Loss and a stand-alone statement of Financial Position. Both statements should include all the headings and subheadings). NB: An extended trial balance is not required for this task. · Task 2 (80 marks ~ 800 words) Discuss how Dean Delivery Service (in Task 1) applied the appropriate accounting concepts/assumptions.

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