Task 1

JOURNAL ENTRIES

DATE ACCOUNT Dr Cr
1-Jun CASH $15,000
CAPITAL $15,000
DATE ACCOUNT Dr Cr
4-Jun COMPUTER $1,200
ACCOUNT PAYBLE $1,200
DATE ACCOUNT Dr Cr
5-Jun CASH $500
ACCOUNT RECEIVABLE $500
DATE ACCOUNT Dr Cr
6-Jun RENT $400
CASH $400
DATE ACCOUNT Dr Cr
7-Jun ACCOUNT RECEIVABLE $1,500
CONSULTING FEES $1,500
DATE ACCOUNT Dr Cr
8-Jun CASH $2,000
CAPITAL $2,000
DATE ACCOUNT Dr Cr
9-Jun ACCOUNT RECEIVABLE $500
CONSULTING FEES $500
DATE ACCOUNT Dr Cr
10-Jun FURNITURE $3,400
ACCOUNT PAYBLE $3,400
DATE ACCOUNT Dr Cr
11-Jun WAGES & SALARIES $1,500
CASH $1,500
DATE ACCOUNT Dr Cr
15-Jun TELEPHONE $65
CASH $65
DATE ACCOUNT Dr Cr
16-Jun OFFICE CLEANING $231
CASH $231
DATE ACCOUNT Dr Cr
20-Jun RENT $400
CASH $400
DATE ACCOUNT Dr Cr
23-Jun CASH $250
ACCOUNT RECEIVABLE $250
DATE ACCOUNT Dr Cr
24-Jun ACCOUNT RECEIVABLE $4,800
CONSULTING FEES $4,800
DATE ACCOUNT Dr Cr
26-Jun WAGES & SALARIES $1,500
CASH $1,500
DATE ACCOUNT Dr Cr
28-Jun ACCOUNT PAYBLE $3,400
CASH $3,400
DATE ACCOUNT Dr Cr
30-Jun ADVERTISING $200
CASH $200
DATE ACCOUNT Dr Cr
30-Jun DEPRICIATION $300
COMPUTER -ACCUM DEP $170
FURNITURE-ACCUM DEP $130
Task 2

LEDGE
R

DR CASH CR
AMOUN
DATE ACCOUNT T DATE ACCOUNT AMOUNT
1-Jun BALANCE B/D $24,000 6-Jun RENT $400
1-Jun CAPITAL $15,000 11-Jun SALARY $1,500
ACCOUNTS
5-Jun RECEIVABLE $500 15-Jun TELEPHONE $65
OFFICE
8-Jun CAPITAL $2,000 16-Jun CLEANING $231
ACCOUNTS
23-Jun RECEIVABLE $250 20-Jun RENT $400
26-Jun SALARY $1,500
ACCOUNT
20-Jun PAYABLE $3,400
30-Jun ADVERTISING $200
30-Jun BALANCE C/D $34,054
TOTAL $41,750 $41,750

ACCOUNT
DR RECEIVABLE CR
AMOUN
DATE ACCOUNT T DATE ACCOUNT AMOUNT
1-Jun BALANCE B/D $3,500 5-Jun CASH $500
7-Jun CONSULTING FEES $1,500 23-Jun CASH $250
9-Jun CONSULTING FEES $500
24-Jun CONSULTING FEES $4,800
30-Jun BALANCE C/D $9,550
TOTAL $10,300 $10,300

COMPUTER-AT
DR COST CR
AMOUN
DATE ACCOUNT T DATE ACCOUNT AMOUNT
1-Jun BALANCE B/D $8,000
ACCOUNT
4-Jun PAYABLE $1,200
30-Jun BALANCE C/D $9,200
TOTAL $9,200 $9,200

DR COMPUTER ACCUM DEP CR

AMOUN
DATE ACCOUNT T DATE ACCOUNT AMOUNT
1-Jun BALANCE B/D $2,000
30-Jun DEPRICIATION $170
30-Jun BALANCE C/D $2,170
TOTAL $2,170 $2,170

DR FURNITURE- ACCUM DEP CR

AMOUN
DATE ACCOUNT T DATE ACCOUNT AMOUNT
1-Jun BALANCE B/D $1,500
30-Jun DEPRICIATION $130
30-Jun BALANCE C/D $1,630
TOTAL $1,630 $1,630

FURNITURE -AT
DR COST CR
AMOUN
DATE ACCOUNT T DATE ACCOUNT AMOUNT
1-Jun BALANCE B/D $5,000
ACCOUNT
10-Jun PAYABLE $3,400
30-Jun BALANCE C/D $8,400
TOTAL $8,400 $8,400

ACCOUNT
DR PAYABLE CR
AMOUN
DATE ACCOUNT T DATE ACCOUNT AMOUNT
28-Jun CASH $3,400 1-Jun BALANCE B/D $3,000
$0 4-Jun COMPUTER $1,200
$0 10-Jun FURNITURE $3,400
30-Jun BALANCE C/D $4,200
TOTAL $7,600 $7,600

DR CAPITAL CR
AMOUN
DATE ACCOUNT T DATE ACCOUNT AMOUNT
$0 1-Jun BALANCE B/D $30,000
$0 1-Jun CASH $15,000
$0 8-Jun CASH $2,000
30-Jun BALANCE C/D $47,000
TOTAL $47,000 $47,000

CONSULTING
DR FEES CR
AMOUN
DATE ACCOUNT T DATE ACCOUNT AMOUNT
1-Jun BALANCE B/D $31,762
ACCOUNT
7-Jun RCVBLE $1,500
ACCOUNT
9-Jun RCVBLE $500
ACCOUNT
24-Jun RCVBLE $4,800
30-Jun BALANCE C/D $38,562
TOTAL $38,562 $38,562

DR TELEPHONE CR
AMOUN
DATE ACCOUNT T DATE ACCOUNT AMOUNT
1-Jun BALANCE B/D $121
15-Jun CASH $65
30-Jun BALANCE C/D $186
TOTAL $186 $186

DR DEPRICIATION CR
AMOUN
DATE ACCOUNT T DATE ACCOUNT AMOUNT
1-Jun BALANCE B/D $3,500
 COMPTER-ACCUM
30-Jun DEP $170
FURNITURE-
30-Jun ACCUM DEP $130
30-Jun BALANCE C/D $3,800
TOTAL $3,800 $3,800

DR ADVERTISING CR
AMOUN
DATE ACCOUNT T DATE ACCOUNT AMOUNT
1-Jun BALANCE B/D $2,200
30-Jun CASH $200
30-Jun BALANCE C/D $2,400
TOTAL $2,400 $2,400

OFFICE
DR CLEANING CR
AMOUN
DATE ACCOUNT T DATE ACCOUNT AMOUNT
1-Jun BALANCE B/D $2,541
16-Jun CASH $231
30-Jun BALANCE C/D $2,772
TOTAL $2,772 $2,772

WAGES
DR &SALARIES CR
AMOUN
DATE ACCOUNT T DATE ACCOUNT AMOUNT
1-Jun BALANCE B/D $15,000
11-Jun CASH $1,500
26-Jun CASH $1,500
30-Jun BALANCE C/D $18,000
TOTAL $18,000 $18,000

DR RENT CR
AMOUN
DATE ACCOUNT T DATE ACCOUNT AMOUNT
1-Jun BALANCE B/D $4,400
6-Jun CASH $400
20-Jun CASH $400
30-Jun BALANCE C/D $5,200
TOTAL $5,200 $5,200
Task 3

TRAIL BALANCE AS AT 30 JUN

2016

ACCOUNT DEBIT CREDIT

CASH $34,054
ACCOUNTS RECEIVABLE $9,550
COMPUTER AT COST $9,200
COMPUTER -ACCUM DEP $2,170
FURNITURE AT COST $8,400
FURNITURE- ACCUM DEP $1,630
ACCOUNT PAYBLE $4,200
CAPITAL $47,000
COSULTING FEE $38,562
DEPRICIATION $3,800
TELEPHONE $186
ADVERTISING $2,400
OFFICE CLEANING $2,772
WAGES & SALARY $18,000
RENT $5,200

TOTAL $93,562 $93,562

Task 4

P&L STATEMENT FOR THE YEAR ENDED

30 JUN 2016

INCOME

CONSULTING FEE $38,562

EXPENSES

RENT $5,200
WAGES & SALARIES $18,000
OFFICE CLEANING $2,772
DEPRICIATION $3,800
TELEPHONE $186
ADVERTISING $2,400

TPTAL EXPENSES $32,358

NET PROFIT $6,204

Task 5

BALANCE SHEET AS OF 30 JUN 2016

ASSETS
CASH $34,054
ACCOUNTS RECEIVABLE $9,550
TOTAL CURRENT ASSETS $43,604
COMPUTER -AT COST $9,200
COMPUTER-ACCUM DEP -$2,170
FURNITURE -AT COST $8,400
FURNITURE-ACCUM DEP -$1,630
TOTAL FIXED ASSETS $13,800
TOTAL ASSETS $57,404

LIABILITIES
ACCOUNTS PAYABLE $4,200
TOTAL LIBILITIES $4,200

NET ASSETS $53,204

(TOTAL ASSETS-TOTAL
LIBILITIES)

EQUITY
CAPITAL $47,000
RETAINED EARNIGS $6,204
TOTAL EQUITY $53,204
Task 6 Ratios

Current Ratio
The current ratio is a liquidity ratio that measures the company's ability to pay short-term and long-term
obligations. In order to measure this ability, the current ratio considers the current total assets of a
company (both liquid and illuminated) compared to the current total liabilities of that company

Current ratio=current assets/current liabilities = 40350/3800 =10.61

Assert turnover ratio

An asset business ratio is a measure how efficiently the company's assets generate revenue, it measures
the dollar's number of dollars generated from the assets of a company

asset turnover ratio is: Revenue / Average Total Assets =4950/47850=0.1034

Return on asserts
Return on Average Assets (RAAA) is an indicator used to assess the profit of a firm's property, and it is
often used by banks and other financial institutions as a means of measuring financial performance.
ROAA is calculated by dividing it by taking net income and dividing it by the average total assets.

Return on assert =net income / average total assets=4950/47850=0.1034

Debit to equity ratio

Debt / equity ratio is a debt ratio used to measure the financial benefits of a company, which is calculated
by dividing the total liabilities of the company by its stockholder equity. D / E ratio indicates how much
money a company is using to finance its assets against the amount of value shown in shareholder's equity.

D/E = Total Liabilities / (Total Assets - Total Liabilities)= 3800/(47850-3800)=0.086

Debt ratio
A financial ratio, that measures the extent of the rise of a company or consumer. The loan ratio is defined
as the total long-term and short-term ratio - the total assets are expressed as loans, decimals, or
percentages. It can be interpreted as a proportion of the assets of a company that is funded by debt

Debt ratio= Total debt/ total assets=3800/47850=0.079

Equity ratio
Equity ratio is a good indicator of the level of profit used by a company. Equity ratio measures the
proportion of total assets funded by shareholders, which is in contrast to creditors.

Equity ratio= Total Equity/Total Liability= 44050/3800=11.59

As the current ratio, equity ratio is far higher than the debt ratio and debit to equity ratio the company is
going good. There stakeholders will find the company reliable for the investment.
References