Prepare financial statements for sole proprietors Resource Title: Sam's Survival Courses - Class Revision Sim

Transcription

1 NCEA Acctg Process financial statements for sole proprietors - Sam's Survival Courses 1 of 10 Welcome! Your username is: NCEA Accounting Achievement Standard Prepare financial statements for sole proprietors Resource Title: Sam's Survival Courses - Class Revision Sim How to use this Sim This sim is designed to work on Excel 2007 or later. You may need to enable macros if you get an error message. Click on the tabs (below) to navigate the sim. Achievement Achievement with Merit Achievement with Excellence Prepare financial statements for sole proprietors. Introduction to the Assessment Prepare in-depth financial statements for sole proprietors The tasks are as follows: 1. Prepare the following financial statements: Income Statement Statement of Financial Position / Balance Sheet (with property, plant and equipment note) 2. Prepare a cash budget Use of Good Accounting Practice: Prepare comprehensive financial statements for sole proprietors. This activity requires you to comprehensively process financial transactions for a sole proprietor called Sam's Survival Courses. You will be required to complete two tasks using the resources and information provided in the sim. You are to write your answers in the spaces provided in the worksheets in this workbook. When preparing the financial statements: Use the Student Note Space provided on the Task 1 page for carrying figures rather than the statements themselves. The statements in this sim have three columns for figures. The right column should be reserved for totals and subtotals. All figures should be stated to two decimal places, and rounded correctly to the nearest one cent.

2 NCEA Acctg Process financial statements for sole proprietors - Sam's Survival Courses 2 of 10 Task 1 Prepare the Financial Statements for Sam's Survival Courses For this task, you are required to prepare the financial statements for Sam's Survival Courses. There are two statements to complete in total. Use the Trial Balance and information below and navigate to each statement using the Excel tabs at the bottom or the Schoolsims bookmarks. You can use the checkboxes to mark which transactions you have entered, and the working area for any notes you wish to make. Sam owns his own Survival Course business in Auckland. He owns an outdoor space where he teaches customers basic survival skills. The space he owns includes a small office which Sam uses for his business and an indoor building which Sam uses as part of the course. Sam rents out his building every Sunday to a local community group which provides additional income. Sam is registered for GST. The following Trial Balance and additional information relate to Sam's Survival Courses for the year ended 31 March 2012 Advertising Bank Building Drawings Course electricity Survival equipment Course wages Course supplies on hand Course supplies used Goodwill Insurance Interest on loan Interest on mortgage Office electricity Office equipment Office expenses Sam's Survival Courses Trial Balance as at 31 March 2012 $ $ 1890 Accumulated depreciation - survival equipment 16,250 6,900 Accumulated depreciation - office equipment 2, ,000 Accumulated depreciation - building 30,500 53,000 Capital 32,100 6,900 Course fees 199,800 65,000 GST payable 6,400 46,000 Loan due ,000 2,300 Mortgage 66,000 42,000 Rent received 10,900 8,600 7, , ,500 1,800 $382,850 $382,850 Working Area

3 NCEA Acctg Process financial statements for sole proprietors - Sam's Survival Courses 3 of 10 Additional information: course wages owing: $240 advertising has been paid in advance: $290, excluding GST rent of $530 excluding GST has been received in advance depreciation on the office equipment: 8% per year depreciation on the survival equipment, based on a useful life of 10 years and a residual value: $8500 invoices issued to customers for course fees are on hand: $690 including GST insurance expense is to be allocated: 75% for the outdoor course and 25% for the office Note: As of 2010, the annual depreciation rate for buildings has been set to 0% by the IRD. You still need to keep the historical cost and previous accumulated depreciation in the Property, Plant & Equipment note. Working Area

4 NCEA Acctg Process financial statements for sole proprietors - Sam's Survival Courses 4 of 10 Task 1 Prepare the Financial Statements for Sam's Survival Courses Income Statement Prepare Sam's Survival Courses's Income Statement for the year ended 31 March 2012 Use the expense headings provided: survival course expenses administrative expenses finance costs Do not use abbreviations. Revenue Add Other Income Less expenses Survival Course expenses Sam's Survival Courses Income Statement for the year ended 31 March 2012 $ $ $ Auto-Marking

5 NCEA Acctg Process financial statements for sole proprietors - Sam's Survival Courses 5 of 10 Administrative expenses Finance costs Feedback: Unavailable in trial free version

6 NCEA Acctg Process financial statements for sole proprietors - Sam's Survival Courses 6 of 10 Task 1 Prepare the Financial Statements for Sam's Survival Courses Statement of Financial Position Prepare the Statement of Financial Position with accompanying notes for Sam's Survival Courses as at 31 March 2012 Do not use abbreviations. Current assets Non-current assets Total assets Less Liabilities Current liabilities Sam's Survival Courses Statement of Financial Position as at 31 March 2012 $ $ $ Auto-Marking

7 NCEA Acctg Process financial statements for sole proprietors - Sam's Survival Courses 7 of 10 Non-current liabilities Total liabilities Net assets Equity Note to the Statement of Financial Position 1. Property, Plant and Equipment Survival Office Building equipment equipment $ $ $ $ Total Depreciation is calculated on a straight-line basis at the following rates: office equipment: is based on a residual value of $8500 and a useful life of 10 years Feedback: Unavailable in trial free version

8 NCEA Acctg Process financial statements for sole proprietors - Sam's Survival Courses 8 of 10 Task 2 Cash Budget From the information provided below, prepare the cash budget for Sam's Survival Courses for the month of August Choose either "surplus" or "deficit" on the table, which matches the result. Assume that four weeks equals one month. Estimated transactions for August 2012: course fees to be received in cash: $14000 electricity to be paid: $375 direct credit received every fortnight for rent: $530 invoices for courses to be issued: $1700 $3780 to be paid to accounts payable direct debit for interest is to be paid: $240 Sam's drawings per week: $480 automatic payment for wages: $310 per week invoices to be received for course supplies: $7700 $100 to be received from accounts receivable Sam's free car-washing for his family every month: $40 office stationary to be purchased by EFTPOS: $24 bank balance as at 1 August 2012: $1060 Estimated cash receipts Total estimated cash receipts Sam's Survival Courses Cash budget for the month ending 31 August 2012 $ $ Working Area Auto-Marking

9 NCEA Acctg Process financial statements for sole proprietors - Sam's Survival Courses 9 of 10 Estimated cash payments Total estimated cash payments Plus opening bank balance Equals closing bank balance Feedback: Unavailable in trial free version

10 NCEA Acctg Process financial statements for sole proprietors - Sam's Survival Courses 10 of 10 NCEA Accounting Achievement Standard Prepare Prepare financial financial statements statements for for sole sole proprietors proprietors Resource Title: Sam's Survival Courses - Class Revision Sim Resource Title: Carrie's Car Washing - Class Revision Sim Student Version - Student Overall Report Student Name 0 Marking Schoolsims Auto-Mark Teacher Manual Mark Task 1 Mark EMPTY Task 1 Feedback You had 48 incorrect entries. You had 0 correct entries. 0 of 3 balance day adjustments were correct. Task 2 Mark EMPTY Task 2 Feedback You had 14 incorrect entries. You had 0 correct entries. Overall Judgement EMPTY