ACCT1110 Financial Reporting and Analysis
2025-1
Individual Assignment – V5
On 1 February 2025, Madison Smashover started a tennis coaching business. She registered the business as Challenger Tennis Coaching and formed a private (Pty Ltd) company in the same name. Madison is to be the sole shareholder of the company. Madison has looked at the Xero standard chart of accounts structure and decided to use the following account names and numbers for recording the business transactions. Madison has been approved by the government to work with children and has access to a local public school tennis court for conducting the coaching business.
No new general ledger accounts are required to be established or added to the chart of accounts.
|
Nature
|
Account no.
|
Account Description
|
|
Assets
|
210
|
Cash at bank
|
|
|
220
|
Accounts receivable
|
|
|
320
|
Coaching equipment
|
|
|
330
|
Computer equipment
|
|
Liabilities
|
420
|
Accounts payable
|
|
|
460
|
Bank loan
|
|
Equity
|
500
|
Share capital
|
|
|
510
|
Retained earnings
|
|
Income
|
610
|
Revenue
|
|
Expenses
|
715
|
Advertising expenses
|
|
|
725
|
Bank and credit card charges
|
|
|
735
|
Court hire charges
|
|
|
745
|
Insurance expense
|
|
|
765
|
Printing expenses
|
|
|
785
|
Phone rental expense
|
Listed below are the events that have occurred during the first month of the Challenger Tennis Coaching Pty Ltd business (ignore GST).
|
Bank statement for Challenger Tennis Coaching Pty Ltd for the month ended 28 February 2025
|
|
Issued by Federation Cup Bank Pty Ltd
|
|
Statement Number
|
1
|
|
|
Account Number
|
840200 12345678
|
|
|
Closing Balance
|
2,077.00
|
|
|
|
|
|
|
Date
|
|
Description
|
Payments
|
Receipts
|
Balance
|
|
|
|
|
|
Opening balance
|
|
|
0.00
|
|
|
|
3
|
Feb
|
Capital contributed - cash and bank loan
|
|
6,800.00
|
6,800.00
|
Cr
|
|
|
4
|
Feb
|
DD - All Cover Insurances Pty Ltd
|
105.00
|
|
6,695.00
|
Cr
|
|
|
5
|
Feb
|
DD – Keep In Touch Pty Ltd
|
95.00
|
|
6,600.00
|
Cr
|
|
|
6
|
Feb
|
EFT – Online Tennis Sales Ltd
|
3,350.00
|
|
3,250.00
|
Cr
|
|
|
6
|
Feb
|
EFT – Computer Warehouse Pty Ltd
|
1,650.00
|
|
1,600.00
|
Cr
|
|
|
11
|
Feb
|
EFT- Neighbourly Social Media
|
185.00
|
|
1,415.00
|
Cr
|
|
|
18
|
Feb
|
Deposit - Cash
|
|
360.00
|
1,775.00
|
Cr
|
|
|
20
|
Feb
|
EFT – Various Suppliers
|
155.00
|
|
1,620.00
|
Cr
|
|
|
21
|
Feb
|
Deposit - EFT
|
|
480.00
|
2,100.00
|
Cr
|
|
|
25
|
Feb
|
Deposit - Cash
|
|
650.00
|
2,750.00
|
Cr
|
|
|
27
|
Feb
|
EFT – Court Hire
|
651.00
|
|
2,099.00
|
Cr
|
|
|
28
|
Feb
|
Statement and bank charges
|
22.00
|
|
2,077.00
|
Cr
|
|
Required
1) For those of the above that are transactions, prepare the general journals for the month ended 28 February 2025. Narrations are not required, however, dates must be clearly specified. Depreciation or other adjusting entries (for example accrued interest on a loan) are NOT necessary. (15 marks)
2) Post all the journals from (1) above to the general ledger and prepare a trial balance as at 28 February 2025. (18 marks)
3) Prepare the following for Challenger Tennis Coaching Pty Ltd:
a) Statement of Profit or Loss for the month ended 28 February 2025.
b) Calculation of retained earnings for the month of February 2025.
c) Classified Statement of Financial Position as at 28 February 2025. (12 marks)
(Total = 45 marks which equals 15% of the total course mark)