Sample Assessment task – Blackboard Assignment Manager
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Question 1: This is a two-part question. Part A is answered in this document. Part B is answered in Cadmus. Answer Part A here in this document. Refer to Cadmus for Part B.
Marks: 20
Schutz Building Services is a fast-growing business in the housing industry. Johan Schutz started the business three years ago and has worked hard to establish the firm. Johan has no accounting knowledge and simply keeps his invoices and receipts in a shoebox that he takes to his accountant once a year to be sorted out and turned into financial statements for tax purposes. Johan does not use financial statements for decision making. So long as he has cash in the bank, Johan is satisfied with how his business is operating. Unfortunately, Johan’s accountant has suddenly left the country and retired to South America.
Johan is negotiating a contract with a supplier of building materials who wants to see his financial statements to ensure that Johan can meet his payments each month. Johan has asked you to prepare financial statements. Based on his last tax return and the contents of his shoebox for this year, you have established the following items.
Using the information, provide a profit and loss statement and a balance sheet in narrative form for Schutz Building Services for the current period. Complete the statements in the forms provided below.
| SCHUTZ BUILDING SERVICES Profit and Loss Statement For the year ended June 30, 2020 | ||
| INCOME | ||
| Service Revenue | 550000 | |
| EXPENSES | ||
| Wages expense | 153500 | |
| Supplies expense | 310000 | |
| Motor vehicle expense | 5600 | |
| Electricity expense | 4000 | |
| 473100 | ||
| Profit | 76900 | |
| SCHUTZ BUILDING SERVICES Balance Sheet As at June 30, 2020 | |
| ASSETS | |
| Cash on hand | 500 |
| Cash at bank | 3800 |
| Accounts Receivable | 80000 |
| Equipment | 68000 |
| Supplies | 18000 |
| Motor vehicle | 32000 |
| TOTAL ASSETS | 202300 |
| LIABILITIES | |
| Accounts Payable | 30000 |
| Wages payable | 3500 |
| TOTAL LIABILITIES | 33500 |
| NET ASSETS | 168800 |
| EQUITY | |
| J. Schutz, Capital | 168800 |
| TOTAL EQUITY | 168800 |