Welcome To A-Z Accounting Services

The business is named A-Z accounting services and therefore the goal of the business is to provide overall accounting and book-keeping services with best quality reporting in the financial statements, compliance with laws and rules and expanding the areas of Australia.

The long term goal of the business is to expand to different areas of Australia and come in with several other activities related to accounting and book-keeping like due diligence, taxation, etc. Furthermore, the other goals of the firm include to deliver the deliverables timely, to be cost effective for the client and adding value to the client’s business (Alexander, 2016).

The business A-Z accounting services in the nature of sole proprietorship firm which will be having a single owner Alex Chae and he willing be taking help of people in the firm from other assistants to get the work completed. The general services being offered by the firm will be accounting work, maintenance of regular accounts, tax filings, book-keeping, tax returns preparation, auditing, consulting, speciality services and tax planning services.

It will be covering the wide areas of accounting including the monthly and quarterly compliance activities as per the standards and laws of Corporation Act, 2001.

The Keys to success will be delivering the best value to the client such the that the accounting, planning and forecasting activity adds value to the client and helps to plan the business and profits in a better way rather than just doing the redundant activity of recording and posting of the activities in journal and finally the financial statements. Some of the keys indicators of success that the firm will be focusing at is:

Delivering the accounts and other actionables in time.
Correctly recording all the transactions and not missing out on the same
Highlighting the risks and opportunities in the market based on the status of the financial statements(Dichev, 2017).
Proper due diligence in case of any acquisition or take over is being done so that the correct valuation is being done.
Having a client eccentric approach and using technology to the best.
Specializing in few areas and partnering with others beyond that
Making use of cloud computing and protection of data and its management.

Financial Information

Chart of Accounts

#	Account Name	#	Account Name
101	Cash at Bank	301	Alex Chae, Capital
102	Accounts Receivable	302	Alex Chae, Drawings
103	Office Supplies	401	Service Revenue
104	Prepaid Subscriptions	501	Utilities Expense
110	Office Furniture	502	Wages Expense
111	Accumulated Depreciation-Furniture	503	Depreciation Expense-Furniture
201	Accounts Payable	504	Supplies Expense
202	Unearned Service Revenue	505	Subscriptions Expense
204	Interest Payable	506	Interest Expense
211	Loan Payable	?	?

Financial Transactions

Financial Transactions during the year

Date	Transactions	Amount
1/04/2018	Alex Chae invested cash into his business	$100,000
1/04/2018	Borrowed money from Namaste Bank. Interest rate is 4% per annum.	$100,000
1/04/2018	Purchased office furniture in cash. The furniture has a useful life of 5 years with no salvage value. The business uses a straight-line method	$30000
15/04/2018	Purchased office supplies on account	$22000
1/05/2018	Received 6 months bookkeeping service fee, and recorded the advanced payment on two balance sheet accounts	$36000
13/05/2018	Paid the bill received on 15/04/2018	$22000
1/06/2018	Paid for 12-month subscription. Alex recorded the payment as a debit to Prepaid subscriptions and a credit to Cash. The subscription started from June 2018	$48000
23/06/2018	Provided services on account	$23000
30/06/2018	Paid wages to a short-term contract employee	$14000
30/06/2018	Received an invoice for utilities used	$20000
30/06/2018	Alex made withdrawal from business account	$25000

Adjustment Transactions as at 30 June 2018

Date	Transactions
30/06/2018	Depreciation Expense for office furniture
30/06/2018	During the period the business used one third of supplies
30/06/2018	Adjustment of unearned service revenue
30/06/2018	Subscription fee expired
30/06/2018	The interest on loan for the month of June is not paid yet

General Journal

Date	Accounts	Debit	Credit
1/04/2018	Cash at Bank A/C	100000
	To Capital A/C		100000
	Investment by the owner
1/04/2018	Cash at Bank A/C	100000
	Loan from Namaste Bank A/C		100000
	Loan borrowed
1/04/2018	Furniture A/C	30000
	To Cash at Bank A/C		30000
	Purchased office furniture in cash
15/04/2018	Office Supplies	22000
	To Accounts Payable		22000
	Purchased supplies on account
1/05/2018	Cash at Bank	36000
	To Unearned service revenue		36000
	Advanced Receipt of 6-month service
13/05/2018	Accounts Payable	22000
	To Cash at bank		22000
	Payment of outstanding bill
1/06/2018	Prepaid Subscriptions	48000
	To Cash at Bank A/C		48000
	Prepayment for 12 months subscription
23/06/2018	Accounts Receivable	23000
	To Services Revenue		23000
	Service Rendered in cash
30/06/2018	Wages	14000
	To Cash at Bank A/C		14000
	Wages expense paid
30/06/2018	Utilities	20000
	To Accounts Payable		20000
	Utility expense incurred
30/06/2018	Drawings	25000
	To Cash at Bank		25000
	Withdrawal by the owner

General Ledger

Cash at Bank
1/04/2018	Capital	100000	1/04/2018	Furniture	30000
1/04/2018	Loan from Namaste Bank A/C	100000	13/05/2018	Accounts Payable	22000
1/05/2018	Unearned service revenue	36000	1/06/2018	Prepaid Subscriptions	48000
			30/06/2018	Wages	14000
			30/06/2018	Drawings	25000
		236000			236000
EB		97000

Accounts Receivable
23/06/2018	Services Revenue	23000			23000
		23000			23000
EB		23000

Office Supplies
15/04/2018	Accounts Payable	22000			22000
		22000			22000
EB		22000

Prepaid Subscriptions
1/06/2018	Cash at bank	48000			48000
		48000			48000
EB		48000

Office Furniture
1/04/2018	Cash at bank	30000		Balance c/f	30000
		30000			30000
EB		30000

Alex Chae, Capital
	Balance c/d	100000	1/04/2018	Cash at Bank	100000
		100000			100000
					100000

Alex Chae, Drawings
30/06/2018	Cash at Bank	25000			25000
		25000			25000
EB		25000

Accounts Payable
13/05/2018	Cash at bank	22000	15/04/2018	Office Supplies	22000
			30/06/2018	Utilities	20000
		42000			42000
			EB		20000

Loan Payable
	Balance c/f	100000	1/04/2018	Cash at Bank	100000
		100000			100000
			EB		100000

Unearned Service Revenue
		36000	1/05/2018	Cash at Bank	36000
		36000			36000
			EB		36000

Service Revenue
		23000	23/06/2018	Accounts Receivable	23000
		23000			23000
			EB		23000

Wages Expense
30/06/2018	Cash at bank	14000			14000
		14000			14000
EB		14000

Utilities Expense
30/06/2018	Accounts Payable	20000			20000
		20000			20000
EB		20000

5.5 Worksheet

XXXXXXXX Accounting
Worksheet
for the year ended 30 June 2018
Account Name	Unadjusted Trial Balance	Adjustments	Adjusted Trial Balance	Income statement	Balance sheet
Debit	Credit	Debit	Credit	Debit	Credit	Debit	Credit	Debit	Credit
Cash at Bank	97000				97000				97000
Accounts Receivable	23000				23000				23000
Office Supplies	22000			7333	14667				14667
Prepaid Subscriptions	48000			4000	44000				44000
Office Furniture	30000				30000				30000
Accum. Depreciation-Furniture				1500		1500				1500
Accounts Payable		20000				20000				20000
Unearned Service Revenue		36000	12000			24000				24000
Interest Payable				1000		1000				1000
Loan Payable		100000				100000				100000
Alex Chae, Capital		100000				100000				100000
Alex Chae, Drawings	25000				25000				25000
Service Revenue		23000		12000		35000		35000
Utilities Expense	20000				20000		20000
Wages Expense	14000				14000		14000
Depreciation Expense-Furniture			1500		1500		1500
Supplies Expense			7333		7333		7333
Subscriptions Expense			4000		4000		4000
Interest Expense			1000		1000		1000
Total	279000	279000	25833	25833	281500	281500	47833	35000	233667	246500
Profit (Loss) for the period							(12833)			(12833)

Financial Statements

XXXXXXXXX Accounting
Income Statement
for the year ended 30 June 2018
Income
Service Revenue		35000
Total Income		35000

Expenses
Utilities Expense		20000
Wages Expense		14000
Depreciation Expense-Furniture		1500
Supplies Expense		7333
Subscriptions Expense		4000
Interest Expense		1000
Total Expenses		47833

Net Income/(loss) before Tax		(12833)

XXXXXXXXX Accounting
Statement of changes in Equity
for the year ended 30 June 2018
Alex Chae, Capital- Beginning		100000
Add: Additional contribution
Add: Net Income (Loss) during the period	-12833
Less: Drawings	25000
Increase or Decrease in Equity		-37833
Alex Chae, Capital- Ending		62167

XXXXXXXX Accounting
Statement of financial position
As at 30 June 2018
ASSETS
Cash at Bank		97000
Accounts Receivable		23000
Office Supplies		14667
Prepaid Subscriptions		44000
Office Furniture	30000	28500
Accumulated Depreciation-Furniture	1500
Total Assets	207167

LIABILITIES
Accounts Payable		20000
Unearned Service Revenue		24000
Interest Payable		1000
Loan Payable		100000
Total Liabilities	145000

Total Assets – Total Liabilities	62167

EQUITY
Alex Chae, Capital		62167
Total Equity	62167

The meeting were held on the respective dates with full participation at the allotted workplace and the major issues mentioned in the objectives of the meetings were discussed extensively with views flowing in from all the group participants. The following were the conclusion derived at post discussion and analysis:

The name of the business firm will be “A-Z accounting services” and itwill be situated in the heart of Australia in the city named Sydney. This will help in attracting the major customers (Choy, 2018).

The sole proprietorship concern will be providing diverse accounting services and it will also have expansion plans in the future.

Some of the major services being provided by the firm would be accounting work, maintenance of regular accounts, tax filings, book-keeping, tax returns preparation, auditing, consulting, speciality services and tax planning services.

Some of the key areas in which the company needs to focus to grow in the future were also discussed. Some of these were specialization, cloud computing, highlighting of the risk and opportunities in advance, having a client eccentric approach and diverse use of technology, etc.(Bromwich & Scapens, 2016)

Final accounts including the posting of the journal entries, posting the same to the ledgers or T-accounts, preparation of the unadjusted trial balance, recording the adjustment journals, preparation of the final accounts like profit and loss account, the balance sheet and the statement of changes in equity was also being done.

The performance of the firm over the period of 3 months was being reviewed and discussed.

References

Alexander, F., 2016. The Changing Face of Accountability. The Journal of Higher Education, 71(4), pp. 411-431.

Bromwich, M. & Scapens, R., 2016. Management Accounting Research: 25 years on. Management Accounting Research, Volume 31, pp. 1-9.

Choy, Y. K., 2018. Cost-benefit Analysis, Values, Wellbeing and Ethics: An Indigenous Worldview Analysis. Ecological Economics, p. 145.

Dichev, I., 2017. On the conceptual foundations of financial reporting. Accounting and Business Research, 47(6), pp. 617-632.

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