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5038 Assignment 2 Work Sheet Task1 Task3

The document presents an unadjusted trial balance for ABC Institution as of December 31st, detailing various accounts and their respective debit and credit balances. It also outlines the production and sales units for the months of January to April, along with instructions for preparing trade receivables and payables budgets, a cash budget, and a budgeted income statement for February. Additionally, it assumes opening balances for trade receivables and payables are zero.

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18 views5 pages

5038 Assignment 2 Work Sheet Task1 Task3

The document presents an unadjusted trial balance for ABC Institution as of December 31st, detailing various accounts and their respective debit and credit balances. It also outlines the production and sales units for the months of January to April, along with instructions for preparing trade receivables and payables budgets, a cash budget, and a budgeted income statement for February. Additionally, it assumes opening balances for trade receivables and payables are zero.

Uploaded by

Bình Hoàng
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd

ABC INSTITUTION

December 31st
Unadjusted Trial Balance Adjustments
Debit Credit Debit
Cash $34,000
Accounts receivable $0
Teaching supplies $10,000
Prepaid insurance $12,000
Prepaid rent $3,000
Professional library $35,000
Accumulated depreciation, professional library $12,000
Equipment $80,000
Accumulated depreciation, equipment $14,900
Accounts payable $26,000
Salaries payable $0
Unearned training fees $12,500
Unearned consulting fees $6,600
ABC, capital $90,000
ABC, withdrawals $50,000
Consulting fees earned $123,900
Training fees earned $40,000
Depreciation expense, Professional library $2,000
Depreciation expense, Equipment $3,000
Salaries expense $50,000
Insurance expense $1,000
Rent expense $33,000
Teaching supplies expense $500
Advertising expense $6,000
Utilities expense $6,400
Total $ 325,900 $ 325,900 $ -
$ -
Adjustments Adjusted Trial Balance
Credit Debit Credit

$ - $ - $ -
Month Jan Feb Mar Apr
Production (Units) 550 700 750 600
Sales (Units) 400 500 600 550

1. Prepare trade receivables budget


Month Jan Feb Mar Apr
Opening balance
Credit sales (sales unit x £20 p.u)
Immediate collection of trade receivables
Collection of receivables after 1 month
Closing balance

2. Prepare trade payables budget

Month Jan Feb Mar Apr


Opening balance

Credit purchase (production units x £6p.u)


Repayment of trade payables
Closing balance

3. Cash budget
Month Jan Feb Mar Apr
Opening balance
Cash inflow
Collection of trade receivables
Cash outflow
Payment of direct material
Payment of labour cost (Production units x
£4 p.u)
Administration expense
Selling expense
Fixed overheads
Acquisition of new machinery
Closing balance

4. Budgeted income statement for February

Revenue (Sales units x £20 p.u)


Expense
Raw material expense (Sales units x £6 p.u)
Direct labour expense (Sales units x £4p.u)
Administration expense
Selling expense
Fixed overheads
Net profit
Assume Opening balance of trade receivables =0
Opening balance of trade payables =0

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