Accounting 19940579

Jack Uzi, wholesale toys online, operates out of his office in his parents’ apartment, with 0 inventory. Every toy he sells is first purchased then re-sold, but only after the order comes through. You need to help him out with his bookkeeping. The following transactions occurred in October: a. Paid £500 for lease of computer equipment in advance for November b. Cash Sales of £4,847. (for stuffed animal) c. Cash sales of £4,486 (for Educational Toys) d. Cash sales of £4,702 (for Video Games) e. Cash Sales of £1,827 (for Pretend-play toys) f. Purchase of office supplies on account from Bing’s Office Supply, £416. g. Withdrawal by owner (Jack Uzi) of £1,600. h. Payment on account (Bing’s), £390. i. Payment of wages with cash, £2,500. j. Payment for cleaning services with cash, £74 k. Payment to purchase stuffed animal, £4,044 l. Payment to purchase Educational Toys, £3,547 m. Payment to purchase Video Games, £4,169 n. Payment to purchase Pretend-play toys, £1,382  Further, he has account balances for the beginning of October as follows: Cash £ 2,000 Accounts Payable, Bing’s Office Supply Hut £ 75 Office Supplies £ 75 Jack Uzi, Capital £ 2000 Instructions 1. Prepare books of original entries (Sales journal, purchase journal, cash journal) 2. Prepare the general ledger 3. Jack checked his bank balance and he noticed that his actual cash balance was £20 less due to overdraft fees, make the necessary adjustments 4. Prepare a trial balance for October 31 2017 5. Prepare a cash Flow Statement for October 31, 2017 6. Prepare an Income Statement for the period ending October 31, 2017 7. Prepare a Balance Sheet for October 31, 2017 Problem 2 (ACs3.1, 3.2 & 3.3) WoodyTrain has the following income statement (see attachment for details)  Instructions 1. Using the usual ratio categories (Liquidity ratios, Solvency ratios and Profitability ratios), classify the following ratios ? Current Ratio ? Acid-Test Ratio ? Debt-Equity Ratio ? Profit Margin ? Return on Owners’ Equity 2. Calculate the following ratios ? Debt-Equity Ratio ? Profit Margin ? Return on Owners’ Equity 3. Based on the information provided and your ratio, how would you describe the financial performances of WoodyTrain? Summative Delivery • Completion of tasks 1 and 2 • Indicative word count 3000 words

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