Question

This assignment is a case study which must be completed in Excel. You are expected to use T-Tables to produce Trial Balance. The assignment will involve aspects of the material from all weeks of the course and is designed for you to demonstrate your new (or newly refreshed) accounting knowledge. It accounts for 30% of the final grade and you must achieve at least 50% in both this assignment and the course as a whole to pass.

Case Study: JJ Cakes

JJ Cakes began operating on January 1 2018. They are a specialist cake maker. The premises they occupy are rented and they signed a five year lease with a prepayment of the first three months and half a month’s rent as a damage deposit. The rent is $2,000 per month and includes all utilities. The owner, JJ, started the business with $25,000 she received on her 30^th birthday from her great aunt. She is very excited about starting her business and has lined up her first client who wants a wedding cake for a March 1^st wedding. The client has paid a $400 deposit for this custom $1,200 three tier cake. Before the business opened, JJ spent $5,000 cash on a new oven ($2,500), a display case ($600), furniture for the store front ($1,100) and a backlit sign for the front of the store ($800). JJ also purchased $1,500 of supplies on account from a local company, with a 90 day credit policy. There is an annual insurance policy required by the landlord, which JJ purchased on January 1 for $1,800.

JJ expects clients to book cakes from day one so has hired a friend, Amy, to work the front of store at $15/hr for a 40hr week. She also went ahead and ordered $700 worth of inventory to be delivered on January 10th and every two weeks after that. The inventory is on account and payment is expected within 30 days.

At January 31^st, JJ Cakes has sold and produced 4 custom cakes, details as followed:

1. $900 cake, ordered January 3^rd, delivered January 11^th, paid cash on delivery
2. $2,000 cake, ordered January 5^th, delivered January 12^th, paid cash January 15^th
3. $1,500 cake, ordered January 9^th, delivered January 13^th, paid cash on delivery
4. $2,500 cake, ordered January 18^th, delivered January 30, balance outstanding

For cake #4, the customer still has a week to pay per the terms of the contract. There is $150 of inventory left in the stock room. The employee has worked 24 hours in the last week of January, as well as four full weeks of work. She is paid every two weeks at the end of the second week worked. JJ is not drawing a salary.

JJ does not pay her accounts payable until the due date as part of her cash management system. JJ calculates her inventory on a periodic basis at the end of each month

JJ has asked you to help her with her accounting for the first three months of business while she figures out the logistics of it. You are happy to do this, but want to make sure that everything is recorded promptly and accurately to ensure JJ has the correct groundwork for understanding her business.

1. You need to journalise the events of the first month of business:

• Your first task is to record all journal entries for January 1
• You need to record all journal entries which occur during month 1 (For wage expense purposes, January 1, 2018 was a Monday)
• You need to record all month end adjusting entries

2. Complete T-Tables for each account to help JJ see how the accounts are impacted by the month’s activities.

3. Complete a Trial Balance for the company

please add t tables and kindly provide solution in excel format and not had written

Answer 1

S.No Particulars Debit I credit 34.000 2. sooo 3. 2500 Engloyees Rent account 24.000 To ash (balance [Being Rent Poud 2000x 12.000] Bank/cash account to Gpital 25.000 [Being Cash included to Capital Eraring account to cash (bank [Being 281004 Rearshal Employees Back (it sign Display Case accant enfiture account to Cash/Bank [being employess paid office] Rectases account to cash (bent 1500 [Being Boying Rooneday] Purchase account to bank (cash 18000 [Boing Purchase accoat] 800 GOO (100 2500 S 6. 1800 CS CamScanner

60 Salary aceant to book! cash account CBeing Paid Salono acion Purchase account to Cash Ibank 8 t oo 900 900 Cash/Bank account to Sales [Being Paying sales 10. Before accoont to Cash/book (Boing paying cash 2000 doo Go 960 60960 Ics Scanned with CamScanner

25000 1 1 1 Total Balance Particulars Capital Rent 24000 Determaining 2800 Blahidsign 800 Display Case 6oo Furniture 1100 catee 1500 Cash 1800 Salary GO Purchases "700 salay Eatnots 2000 Adjustments 1 1 1 1 1 900 al6o Total 35060 | 35060 CS Scooned with