Individual Accounting Assignment

Individual Accounting Assignment

Requirements

Ø Total 70 marks, 70% of the unit assessment

Ø Due day: (Friday day) June 25th, 2020

Ø Delay: send the email after the due day, will lose 5-15marks(1-3days). more than 3 days (after June 26th ) will lose whole 70 marks.

Ø Send your assignment by email. Lecturer Email: 490591399@qq.com

Ø no cheating, no plagiarism

Ø Chose one of the two cases as your assignment case, and answer all of its requirements.

Case Study 4-1

Kathy Wintz formed a lawn service business as a summer job. To start the business on May 1, 2019, she deposited $1,000 in a new bank account in the name of the business, as the beginning total assets. The $1,000 consisted of a $600 loan from Bank One to her company, Wintz Lawn Service, and $400 of her own money. The company gave $400 of capital to Wintz. Wintz rented lawn equipment, purchased supplies, and hired other students to mow and trim customers’ lawns.

At the end of each month, Wintz mailed bills to the customers. On August 31, she was ready to dissolve the business and return to college. Because she was so busy, she kept few records other than the checkbook and a list of receivables from customers.

At August 31, the business cash account shows a balance of $2,000, During the summer, the business collected $5,500 from customers, and customers still owe $750. The business purchased supplies totaling $400, and left $50 supplies at the end of August. The business paid employees $1,800 and still owes them $300 for the final week of the summer.

Wintz rented some equipment from Ludwig’s Machine Shop. On May 1, the business signed a six-month rental agreement on mowers (not the business's asset) and paid $600 for the full rental period in advance. Ludwig’s will refund the unused portion of the prepayment if the equipment is returned in good shape. In order to get the refund, Wintz has kept the mowers in excellent condition. In fact, the business had to pay $300 to repair a mower (Repair Expense).

To transport employees and equipment to jobs, Wintz used a trailer that the business bought for $300. The business estimates that the summer’s work used up one-third of the trailer’s service potential. The business checkbook lists a payment of $500 for cash withdrawals during the summer. The business paid the loan back during August. (For simplicity, ignore any interest expense associated with the loan.)

Wintz collected accounting information from the main competitor. the competitor's return on assets was 1.1% during this four months.

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