Acct863 Accounting Information Systems Assessment Answer

Section 1You are Sarah’s friend. Sarah knows that you have studied Accounting Information Systems so she asks you to manage MK’s accounting during Sophie’s absence. Sarah give you a summary of transactions that need to be recorded in Table below (GST inclusive whereapplicable): DateTransactions1 AprilJames deposited$100,000 cash in the business bank account2AprilPurchased merchandise $13,708on creditfromReliable Distributor3AprilSold merchandise toKitchen Class $5,704 on creditPurchased office supplies for cash, $2,0706 AprilPaid rent for the month $92010 AprilPaid Reliable Distributor for merchandise purchased on 2 April12AprilSold merchandise for cash $20,240Kitchen Class paid its accounts 16 AprilCash purchase of merchandise $13,80019 AprilPurchased an office computer, $2,300 from Computer World on credit21 AprilSold merchandise to Harris Store, $3,864 on credit24AprilSold merchandise to Smith Retailers, $6,440on credit27 AprilPaid wages to staff, $7,80028 AprilPurchased merchandise on credit from Electronic Wholesalers $9,38430 AprilSold merchandise for cash $10,120Question 1: Record the above transactions in the general journal. xc Question 2: With marketing background, James and Sarah have little knowledge in accounting. Explain to Saraha)What the matching accounting concept is and why it is important?b)What an adjusted trial balance is and why it is necessary?

3 Question 3: After listening to your explanation, Sarah asked you to complete the worksheet which her accountant, Sophie Lee, could not finish before the leave. You are given a trial balance as at 31 March 2020 and some additional information below. Modern Kitchen Trial BalanceAs at 31 March 2020BalanceAccountDebitCreditCash$14,300Account Receivable$31,600Merchandise$55,000Office supplies$1000Prepaid Insurance$1,700Equipment$33,500Accumulated depreciation$16,100Account payable$23,400Wages payableUnearned revenue10,000Modern Kitchen, capital, 1March 2020$49,700James and Sarah, drawings$10,000Revenue$55,000Depreciation expenseWage expense$5,600Insurance expenseElectricity and gas expense$1,500expenseTotal$154,200$154,200Additional data at 31 March 2020:a.Depreciation on equipment, $1,100/month.b.Accrued wage expense, $1000. c.Office supplies on hand, $200 d.Prepaid insurance used up in March, $200. e.Unearned revenue earned during March, $4,000.Required:Complete Modern Kitchen’s worksheet for March. Use the worksheet provided