Please read the below image, I am willing to pay for help either to get me through it or for you to finish/fix it for me up to 500fg. This is the last part of my assignment and I thought it would be the easiest but it is really not turning out that way. It has been about a year since I did anything like this.

Note it is based in Australia so tax is 30%, depreciation is 40% for software, depreciation is 15% for first year of other assets, 30% the following years. I just read that it is not apportioned for part years so I've done the first 6months wrong and we are not using low value pools.

My concerns are mainly:
The wages are not really wages, wages implies things like annual leave, sick leave etc entitlements are being built up, payg withheld, superannuation etc. That is not the case. This is simply the owners taking $500 a week each for the first 6months, then $600 a week each in following year, then $650 each in following year. So it is their wage essentially but it should be counted as they take it from the profits of the week. How do I show that?

The loan, am I supposed to be separating interest expense from loan payments? For example in the first year $13344 of loan was paid, but the balance is $92467. So $5811 interest was paid and $7533 principal. But if I put the full amount in the balance sheet as payments then it doesn't equal the remaining balance when deducted from original.

Is the opening cash the supposed to be the working capital or not?

Again I'll pay for someone to help me finish this.




This post was edited by JukeBOXX on Jun 19 2015 08:54am

I recommend Andy Dufresne.

That doesn't help

You got any payable or receivables? Where's your retained earning? Common stocks? Need dates for the assets purchased and the loan. Loans is only principal amount only (or par net of discount or premium), so it'll be 92467 assuming it is issued at par. If the partners are withdrawing money, then that is not an expense. It is more than likely a salary/wage in this case since you got nothing else for it and in that case it would be an expense. Also see that you got a security bond asset. What's your interest revenue on that?

I just spent 2 minutes looking at this and there a lot of missing information. Without those information, it'll be hard to even help you balance that balance sheet.

This post was edited by Rjp on Jun 19 2015 05:12pm

Thanks for having a look at it.

No payables or receivables. Working on a cash basis the only payables are the loan, and the income tax payable which is 30% of the financial years profit after expenses are deducted correct? We don't pay any income tax in current year it is paid in the following year. Australian financial years go from July 1 to June 30. Would the income tax expense even though it isn't paid yet be included in income statement? Or would it just be in the balance sheet as a current liability because it is paid in next financial year?
It is a small business I guess (partnership), just 2 people providing a service. Would retained earnings be the net profit (maybe cash as well) left after first year? They don't need to issue dividends or anything like that. All profit is put into business savings account or working capital.
No stock
Assets and loan all start on 1st of Jan 2016. Business also starts on 1st of Jan 2016.
Security bond is the lease bond used to secure an office space, if they decide to leave the office and move somewhere else it will be given back. No interest or anything on it.
So with the interest I would put the interest expense and loan payments separate in the cash flow statement and income statement? Then in the balance sheet I put the principal amount $100,000 less principal payments equals the new balance and ignore the interest expense?

This post was edited by JukeBOXX on Jun 19 2015 07:00pm

Need this done within 8 hours. Willing to pay up to 1000fg. This is all the information given on the assignment sheet. Figures for sales, rent, electricity etc can all be made up but need to be semi realistic, see my figures as example.

Hey buddy

1)Depreciation expense is not a b/s account, its an i/s account
Recall we record our assets at "book value". Also dont ever put expenses on the balance sheet if that helps you remember better. get rid of that shit asap

2)Youre putting loan payments in both income statement and balance sheet

Loan payments are essentially "interest expense" EXPENSE, i hope that helps you see the problem

3)Your fiscal year liability from the bank loan should be $100,000 not "less payments" because that is the principal amount you are obligated to pay to the bank plus interest on the day of maturity.

This is what the journal entry on paying interest should be like
Dr interest expense (income statement)
Cr cash or interest payable (balance sheet)

Here is what youre doing
Dr interest expense (b/s)
dr interest expense (i/s)
Cr cash or interest payable (b/s)

Hey buddy

1)Depreciation expense is not a b/s account, its an i/s account
Recall we record our assets at "book value". Also dont ever put expenses on the balance sheet if that helps you remember better. get rid of that shit asap

He have A/D down for B/S not depreciation expense, so his B/S is correct in that aspect

2)Youre putting loan payments in both income statement and balance sheet

Loan payments are essentially "interest expense" EXPENSE, i hope that helps you see the problem

I pointed out that he needed to include interest expense (5814) on the I/S, but he also have to include the principal payment made on the B/S (-7533), so his remaining principal would be 92467

3)Your fiscal year liability from the bank loan should be $100,000 not "less payments" because that is the principal amount you are obligated to pay to the bank plus interest on the day of maturity.

It's a loan, not a BP.

This is what the journal entry on paying interest should be like
Dr interest expense (income statement)
Cr cash or interest payable (balance sheet)

Here is what youre doing
Dr interest expense (b/s)
dr interest expense (i/s)
Cr cash or interest payable (b/s)


D Interest Expense
D Loan
C Cash

Woops, i dont know why i thought it was bonds payable from a bank lul

And youre right , it was a/d contra account to assets so he should ignore #1