MBS544 Accounting Processes


  1. A) Prepare a chart of accounts for the business using the following format:
Number Account Element Current/NC
101 Cash Asset Current
  1. B) Record the December transactions in the appropriate journal: sales, purchases, cash receipts, cash payments and general
  2. C) Post the journals to the general and subsidiary ledgers. New accounts should be added and numbered in an orderly fashion as needed
  3. D) Prepare a trial balance as at 31 December 2019 using a worksheet. Complete the worksheet using the following additional information.
  4. Office supplies at 31 December total $900
  5. Insurance cover expires on 31 September 2019
  6. Equipment has a useful life of 4 years
  7. Commission revenue of $39 600 has accrued during December
  8. The Warehouse has a useful life of 40 years and residual value of $20,160
  9. Inventory at 31 December is $28 800
  10. Interest is accrued on the loan at the rate of 5% pa.
  11. E) Prepare a fully classified statement of profit or loss for December and a classified statement of position at the end of December
  12. F) Prepare and post the adjusting and closing entries
  13. G) Prepare a post-closing trail balance, and determine whether the subsidiary ledgers agree with the control accounts in the general ledger
  14. H) You have been provided with the following information about two competitors.