Task: Required: Part 1 – Acquiring a business a) Using the data provided above, prepare a properly formatted final Balance Sheet for Bean There Cafe as at 31st December, 2019 (5 marks). b) Review the information provided by the former owners for insights into the way the cafe was previously managed. Briefly summarise any governance/management issues you identify, providing data or examples to support your arguments, and advise the new owners what they should consider doing differently. c) Prepare an initial Balance Sheet after the purchase of the new business on 1st January, 2020. Required: Part 2 continued a) In Excel, create a worksheet for Screamin’ Bean café and enter opening balances from your general journal (prepared in Part 1c). Analyse the information for January provided above and enter all relevant transactions into the worksheet. b) Use the information from your completed worksheet to prepare a Trial Balance for Screamin’ Bean as at 31st Jan. 2020. c) Provide a brief comment to explain the role of a trial balance, what does it show / not show? d) Prepare financial statements for Screamin’ Bean as at 31st January, 2020. i.e. prepare a Profit & Loss Statement, a Balance Sheet and a Cash Flow Statement (25 marks). e) Sam and Kim want to pay themselves $6,000 each at the end of the month. In your role as volunteer accountant, prepare a succinct memo dated 1st February, 2020 to give them feedback on the financial operation of the café, it financial position and performance for the first month of business. Include in your advice, your conclusion as to whether or not the owners should take the proposed cash payments and support your arguments/conclusions with relevant data Required: Part 3 ‐ Forum engagement a) Identify and discuss your most 2 effective contributions to the forum, providing examples / evidence to demonstrate why it was effective, and b) Identify which post (by someone else) was most useful for you in supporting your learning, or in extending your thinking about a topic, and explain why.
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