Answer the following questions:
1. What are meant by the terms assets and liabilities?
2. What is a bank statement and how does it assist in identifying discrepancies?
3. What is the GST, who pays it and how is it calculated when shown as a GST exclusive price and as a GST inclusive price?
4. Describe the differences between accrual accounting and cash accounting?
5. Explain the following:
a. General ledger
b. Chart of accounts
d. Double entry accounting
Iain Hew owns The French Travel Agency, at Cape Drayton, Queensland and is thinking of buying new office furniture in three months’ time (December, 20XX) at a cost of $65,000. The old furniture will be sold at that time for $3,000. Assume an opening bank balance of $50,000 at the beginning of October. Other details include:
1. Iain estimates $70,000 sales for each month. Half these sales are received in cash and half are received in the next month as they are credit sales. Octobers credit sales from September, amount to $35,000.
2. Purchases amount to 25% of sales (excluding scrap) and are paid for in cash.
3. Labour costs are $20,000 each month.
4. Superannuation ($3,000), rent (3,000), energy bills ($2,000), miscellaneous ($2,500) are all paid monthly.
5. Transport costs to the dock, town accommodation areas, and general couriering work amount to $1,000 per month.
6. Rates are paid once in October of $5,000. Requirements:
1. Prepare a cash budget for each month for The French Travel Agency, with the view to advising Iain whether he is in a position to pay $65,000 cash for the furniture at the end of the third month (December). Include also an accurate heading for this cash budget.
2. Suppose your balance at end was negative, what (new approaches) actions to rectify the problem would you consider?
3. Who would you consult and inform in relation to resource decisions?
Recalculate The French Travel Agency’s cash budget for the same period if:
1. sales still averaged $70,000 per month,
2. with sales averaging 90% cash and 10%, debtors for September were $ 6,000
3. purchases averaging 30% of sales
4. bank balance to start was $4,000
5. all else remains the same.
6. is there a problem with resource decisions?
Why Work with Us
Top Quality and Well-Researched Papers
We always make sure that writers follow all your instructions precisely. You can choose your academic level: high school, college/university or professional, and we will assign a writer who has a respective degree.
Professional and Experienced Academic Writers
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.
Free Unlimited Revisions
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. You can do this yourself after logging into your personal account or by contacting our support.
Prompt Delivery and 100% Money-Back-Guarantee
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. In case you cannot provide us with more time, a 100% refund is guaranteed.
Original & Confidential
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. We also promise maximum confidentiality in all of our services.
24/7 Customer Support
Our 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.
No need to work on your paper at night. Sleep tight, we will cover your back. We offer all kinds of writing services.
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.
Admission Essays & Business Writing Help
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.
Our 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. You can use this option as many times as you see fit. This is free because we want you to be completely satisfied with the service offered.