Accounting Basics

Using the information in your data sheet, you are required to
i.use an accounting worksheet to analyse transactions and balance-day adjustments for themonth’sactivities,then record it inanexcel worksheet.
ii. By using the analysis archived in your assignment worksheet to prepare financial statements: Income Statement, Balance Sheet, and Classified Statement of Cash Flows.
iii.Provide a short explanation on the unique features of the proprietor that you analysed.
Note:
Use the Notes column of the Worksheet to describe the type of expense and income – this will make your preparation of the Income Statement easier;
You may wish/need to change the column headings of the work sheet (i.e. the account names) and/or add columns;
You mustshowand explain your calculation of thevaluesof alladjusting entries. This can be provided either in the Worksheet or on separate pages;
Formatting: ensure it fits well in an A4 page and readable at Moodle.
The Statement of Cash Flows must be classified, i.e. cash flows must be shown in the categories of operating, investing, and financing cash flows;
You must use the Direct Method to prepare the Statement of Cash Flows. Show all calculations;
Round all monetary amounts to the nearest dollar;
Since the business does not trade in products, it does not have an inventory account, and it is not necessary for the Income Statement to show Cost of Sales or Gross Profit.