Answer the following questions.
1. What are the main purposes of a fixed assets register?
2. What are the requirements a tax payer must meet in order to be allowed a depreciation deduction for a property?
3. What are the two reasons a company would dispose of a fixed asset?
4. What are accruals? Give 2 examples.
5. What is a doubtful debt?
6. Why might the amount of inventories on the general ledger be lower than that reflected in the inventory value in reality?
7. What needs to be done in order to prepare final general ledger accounts?
8. What needs to be done in order to prepare end of period financial reports?
9. On the 3rd February this year the business received a stationery order—invoice no. 63957 for $75.96—from the Office Shop. On the 4th February, the business sold a garden setting to TR Brown for $153.95. Invoice no. 73958.
Complete the general ledger: Scenario 1
You notice that the rent for May is recorded as $650 but should have been $560. Complete the general journal.
Reconcile the cash ledger and bank statement shown. What differences are there between the ledger and the statement?
Cash LedgerA business has sales of $825,000 over the fiscal year to June 30th last financial year. Cost of goods Sold was $260,000 and administrative and sales expense was $180,000. Depreciation was calculated at $65,000. Interest earnings were $15,000 and interest paid on loans was $35,000. The business is based in Australia.
Assume a tax rate of 30% when making your calculations.
What is the Net Income (after tax) for the Year Ending June 30th?
10. Prepare a balance sheet for a business that has provided the following figures. Short term loans payable $25,000, prepaid expenses $17,000, inventory $85,000, long term loans payable 42,000, equipment $60,000, paid in capital $35,000, PAYG tax withheld $15,000, accounts receivable $185,000, goodwill $15,000, cash $60,000, retained earnings $50,000, accounts payable $15,000, accumulated depreciation $12,000, accrues expenses payable $20,000 and capital stock $15,000 and net income of $193,000