Suppose you are the owner of a computer service company. Your accountant is out of town and the only accounting record available to you is the trial balance. Your banker requests some information. Use the trial balance below to answer the questions. (Show all working)
Required:
(a) How much are Casino Computer Service Center’s total asset? (1.5 marks)
(b) How much are Casino Computer Service center’s total Liabilities? (1.5 marks)
(c) Can the company pays its debts and remain in business? (1.5 marks)
(d) Calculate the amount of profit or loss for Casino Computer Service Center. (1.5 marks)
(e) Calculate Casino Computer Service Centre’s equity and accounting equation. (1.5 marks)
(f) An asset is similar to an expense. Do you agree? Discuss and use examples to support your discussion. (2.5 marks)
Question 2 (10 marks) The following are the financial statements of two outstanding companies in the retail sector. ACDC Pty Ltd. and BeeGees Ltd. are medium-sized businesses in the printing trade. Their financial statements are set out below. Profit and Loss Account for year ended 31 December 2016 ACDC Ltd. BeeGees Ltd $'000 $'000 Sales 2,880 2,800 Cost of sales (2,200) (2,300) Gross Profit 680 500 Administration costs (250) (130) Selling costs (260) (200) Net profit _170 _170 Balance Sheet as at 31 December 2016 ACDC Ltd BeeGees Ltd $'000 $'000 $'000 $'000 Fixed Assets Property 400 280 Plant/Machinery 420 270 Vehicles 240 120 1060 670 Current Assets Stock
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