Ken Kennett Building Services is a local business operating in the housing industry. Ken Kennett has no formal accounting system and does not use financial statements for decision making. However, he is negotiating a contract with a supplier of building materials who wants to see his financial statements to ensure that Ken can meet his payments each month. Ken has asked you to prepare financial statements. Based on his last tax return and the content of his shoebox (where he keeps his invoices and receipts) for this year, you have recorded the following items:
Cash in the shoebox (with the receipts and invoices) $500
Cash in the bank account 3,800
Building services provided 550,000
Amounts owed by customers 80,000
Wages paid to employees 150,000
Wages owed to the employees 3,500
Building supplies used 310,000
Building supplies on hand 18,000
Amounts owed to suppliers 30,000
Motor vehicle 32,000
Motor vehicle expenses 5,600
Electricity and telephone expenses 4,000
Cash used by Ken for personal expenditure 5,700
Using the information above, prepare a statement of financial performance (income statement) and a statement of financial position (balance sheet) forKen Kennett Building Services.
How would the financial statements you provide help the supplier of building materials decide whether or not to trade with Ken? What parts of the financial statements would be positive indicators that Ken Kennett Building Services would be able to pay for supplies on time and what items may cause some concern for the suppliers?
Clive Calmer offers accounting services to the local small business owners! He has set up a sole proprietorship business named CC Accounting. Clive has collected the following information relating to his business activities at the end of financial year:
Office supplies $1,500
Office supplies expense 840
Telephone expense 255
Motor vehicle expense 330
Accounts receivable 1,500
Bank loan 7,500
Accounts payable 1,080
Cash at bank 8,445
Computer equipment 8,250
Advertising expense 510
Accounting service income 9,750
The following information was also disclosed from examining Clive’s bank statement:
Accounting service income receipts $8,250
Initial contribution by Clive 3,300
Bank loan received 9,000
Payments to suppliers 2,355
Repayment of loan 1,500
Computer equipment purchase 8,250
A. Without preparing formal financial statements, calculate the following:
Profit/loss for the year
Total assets at the end of the year
Total liabilities at the end of the year
Clive Calmer’s capital balance at the end of the year
Net cash inflow/outflow for the year
B. If Clive had withdrawn $3,000 in cash during the year, what effect would this have (increase, decrease, no effect) on the figures you calculated in requirement A?
We always make sure that writers follow all your instructions precisely. You can choose your academic level or professional level, and we will assign a writer who has a respective degree.
We have a team of professional writers with experience in academic and business writing. Many are native speakers and able to perform any task for which you need help.
If you think we missed something, send your order for a free revision. You have 10 days to submit the order for review after you have received the final document.
All papers are always delivered on time. In case we need more time to master your paper, we may contact you regarding the deadline extension.A 100% refund is guaranteed.
We use several writing tools checks to ensure that all documents you receive are free from plagiarism. Our editors carefully review all quotations in the text.
Tutorpro support agents are available 24 hours a day 7 days a week and committed to providing you with the best customer experience. Get in touch whenever you need any assistance.
Try it now!
How it works?
Follow these simple steps to get your paper done
Place your order
Fill in the order form and provide all details of your assignment.
Proceed with the payment
Choose the payment system that suits you most.
Receive the final file
Once your paper is ready, we will email it to you.
At Tutorpro, we have top rated masters and PhD writers who will help you tacke that homework and score A+ grade. Tutorpro services covers all levels of education : high school, college, university undergraduate, masters and PhD academic level.
No matter what kind of academic paper you need and how urgent you need it, you are welcome to choose your academic level and the type of your paper at an affordable price. We take care of all your paper needs and give a 24/7 customer care support system.
An admission essay is an essay or other written statement by a candidate, often a potential student enrolling in a college, university, or graduate school. You can be rest assurred that through our service we will write the best admission essay for you.
Tutorpro academic writers and editors make the necessary changes to your paper so that it is polished. We also format your document by correctly quoting the sources and creating reference lists in the formats APA, Harvard, MLA, Chicago / Turabian.
If you think your paper could be improved, you can request a review. In this case, your paper will be checked by the writer or assigned to an editor. This is free because we want you to be completely satisfied with the service offered.