 Task 2: learning outcome 2

In this task your line manager wants to assess your understanding and ability to prepare and produce
the appropriate final accounts such as profit and loss account, owners’ equity statement, and balance
sheet as well as how these accounts are differed under different forms and types of business.
‫ يريد مديرك المباشر تقييم مدى فهمك وقدرتك على إعداد الحسابات الختامي ة المناس بة مث ل حس اب ال ربح والخس ارة‬، ‫في هذه المهمة‬
.‫وبيان حقوق الملكية للمالكين والميزانية العمومية وكذلك كيفية اختالف هذه الحسابات تحت األشكال واألنواع المختلفة للشركات‬

 Instructions: In this task you have to:

1) Produce the final accounts for a sole trader business (Horizons Programming Company) from
task 1 including profit and loss account, owners’ equity statement, and balance sheet for the
Period ended July 31st. using the trial balance that you have produced in problem 2/ task1.

2) Make the adjustments entries for the following transactions before preparing the final accounts for
LLC company:
 On the 25th of November 2021, the business purchased supplies for 10000 cash. On 31st of
December, 2021 the business found out that the supplies still on hand were 5000 only.
 The business has a Equipment with book value of 8000, with annual depreciation rate of 12%.
 On the1st of August the business purchased a one-year insurance policy for 1800. Prepare the
adjusting entry on 31st of December 2021.
 The employees are paid salaries on the 29th of each month. Prepare the adjusting entry of 5000 of
the employees’ salaries that are not yet paid on the 31st of December, 2021.

3) Use the given adjusted trial balance for Cowell Company, LLC (Table 2) to prepare the final
accounts including profit and loss account, retained earnings statement, and balance sheet for the
Period ended December 31st.

4) Compare the essential features of each financial account statement to analyse the differences
between them in terms purpose, structure and content.
:‫ من أجل خدمة هذا العميل تحتاج إلى‬:‫تعليمات‬ 
،‫ بما في ذلك حساب األرباح والخسائر‬Horizons Programming Company ‫إعداد الحسابات الختامية لشركة‬ )1
‫ وذلك باستخدام ميزان المراجعة‬.2021 ‫ تموز‬31 ‫ للفترة الزمنية المنتهية بتاريخ‬,‫ والميزانية العمومية‬،‫بيان حقوق الملكية‬
.‫الذي قمت باعداده سابقا‬
ّ
:‫تحضير الحسابات الختامية للشركة ذات المسؤولية المحددة‬
ِ ‫) قُم بعمل قيود التسوية للعمليات المالية التالية قبل‬2
َ‫ من كانون األول اكتَ َشف‬31 ‫ و في‬,ً‫ نقدا‬10000 ‫ قام المشروع بشراء لوازم بقيمة‬,‫ من تشرين الثاني‬25 ‫في ال‬ 
.5000 ‫باق اللوازم التي لديه في المخزن هي فقط‬ ِ ‫المشروع ان‬
.% 12‫أن قيمة األهتالك السّنوي هي‬ّ َ‫ اذا علمت‬.8000 ‫لدى المشروع بناء بقيمة دفترية و هي‬ 
‫ضر قيود التسوية الخاصّة‬ ّ ‫ ح‬.1800 ‫في األول من شهر آب قام المشروع بشراء بوليصة تأمين لسنة واحدة و بقيمة‬ 
.2021 ‫ لسنة‬31 ‫بكانون األوّل‬
‫ كانون األول‬31 ‫ للرواتب المستحقة في‬5000‫ قم بإعداد قيد التسوية ب‬.‫ من كل شهر‬29 ‫يتم دفع رواتب للموظفين في‬ 
.2021
‫ ذات المسؤولية المحدودة‬Cowell Company ‫) المعتمد للشركة‬adjusted trial balance( ‫استخدام الرصيد المعدل‬ )3
Luminus Education – Quality Assurance Department
Page 1 of 11 (Form approved by Pearson – November 2017)
 ‫ والميزانية‬،‫ وقائمة األرباح المحتجزة‬،‫) إلعداد الحسابات الختامية بما في ذلك حساب األرباح والخسائر‬2 ‫ (الجدول‬LLC
.‫العمومية‬
.‫ و المحتوى‬,‫ الهيكل‬,‫قارن الميّزات األساسية لك ّل حساب في القوائم المالية و ذلك لتحليل االختالفات من حيث الهدف منها‬ )4

Table 2
Adjusted Trial Balance of the Cowell Company, LLC for the Period ended 31st of December
Account Title Dr. Cr.
Cash €10,700
Accounts Receivable 20,000
Supplies 2000
Prepaid Insurance 15,000
Equipment 35,000
Accumulated depreciation – Equipment €14,000
Unearned Service Revenue 11,000
Taxes Payable 2000
Accounts payable 600
Salaries payable 9,000
Share Capital 24,000
Retained Earnings 12,000
Dividends 1,500
Service Revenue 30,000
Insurance expenses 1,600
Salaries and wages expense 5,000
Depreciation Expense 7,000
Advertising expense 4000
Rent expense 800
Total €102,600 €102,600

Luminus Education – Quality Assurance Department

Page 2 of 11 (Form approved by Pearson – November 2017)
 Learning Outcomes and Assessment Criteria:
Learning Outcome
Pass Merit Distinction
number and Title
LO1 P1 M1 D1
Record business Apply the double entry Analyse transactions Apply trial balance
transactions using book-keeping system of To show the figures to show which
double entry Debits and Credits. progression from a statement of financial
book-keeping, and be Record sales and previous trial balance accounts they will end up
able to extract a trial purchases transactions in to the next one using in.
balance a general ledger. double entry book
P2 keeping.
Produce a trial balance
applying the use of the
balance off rule to
complete the ledger
LO2 P3 M2 D2
Luminus Education – Quality Assurance Department
Page 3 of 11 (Form approved by Pearson – November 2017)
 Prepare final accounts Prepare final accounts Make adjustments to Compare the essential
for sole-traders, from given trial balance balances of sum features of each financial
partnerships and P4 accounts for example, account statement to analyse
limited companies in Produce final accounts accruals, depreciation the differences between
accordance with for a range of examples and prepayments them in terms purpose,
appropriate principles, that include sole-traders, before preparing the structure and content.
conventions and partnerships and limited final accounts.
standards companies.

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Page 4 of 11 (Form approved by Pearson – November 2017)
Plagiarism
Plagiarism is a particular form of cheating. Plagiarism must be avoided at all costs and students who
break the rules, however innocently, may be penalised. It is your responsibility to ensure that you
understand correct referencing practices. As a university college level student, you are expected to
use appropriate references throughout and keep carefully detailed notes of all your sources of
materials for material you have used in your work, including any material downloaded from the
Internet. Please consult the relevant unit teacher if you need any further advice.

Student Declaration
Student declaration
I certify that the assignment submission is entirely my own work and I fully understand the
consequences of plagiarism. I understand that making a false declaration is a form of malpractice.

Student signature: Date:

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 Assessor Feedback:

Grade: Assessor Signature: Date:

Internal Verifier’s Comments:

Signature Date:

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Page 6 of 11 (Form approved by Pearson – November 2017)
 Account Debit Credit
Cash 121,985£

Capital 150,000£

Equipment 30,000£

Supplies 3,500£

A/P 3,500£

Services revenue 15,000£

A/R 3,000£

Inventory 3,975£

Sales. Revenue 10,000£

Sales return 1,000£

Sales discount 540£

Drawings 2,000£

Unearned. Revenue 6,000£

Rent. Exp 950£

Salaries. Exp 2,800£

Utilities. Exp 1,250£

Prepaid. Insurance 6,000£

Cost of sales 7,500£

Total 184,500£ 184,500£

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Page 7 of 11 (Form approved by Pearson – November 2017)
 Luminus Education
Student’s answer sheet

Horizons Programming Company

Income statements for the Period ended July. 31, 2020

Account Title Sub total Total

Net sales
Services revenue
Less : cost of sales
=
Less : Operating expenses

Total Expenses
=

Horizons Programming Company

Change in owner equity for the Period ended July. 31, 2021

Account Title
Capital
Add :
Less : Drawings
=

Horizons Programming Company

Balance sheet at July. 31, 2021

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Page 8 of 11 (Form approved by Pearson – November 2017)
 Assets $ Labilities and owner equity
Current assets Labilities

Total Labilities
Equity

Total current assets Total equity

Non current assets

Total Non current assets

Total assets Total Labilities and owner equity

Adjusting entries :

Transaction Date Account Title Debit Credit

#
1

the Cowell Company, LLC

Income statements for the Period ended December . 31, 2021

Luminus Education – Quality Assurance Department

Page 9 of 11 (Form approved by Pearson – November 2017)
 Account Title Sub total Total
Revenues

Total revenues
Less : expenses

Total Expenses
=

the Cowell Company, LLC

Income statements for the Period ended December . 31, 2021

Account Title
Begging R/E
Add :
Less :
=

ABC, LLC
Statement of financial position for the Period ended December. 31, 2019

Assets $ Labilities and owner equity

Current assets Labilities
Luminus Education – Quality Assurance Department
Page 10 of 11 (Form approved by Pearson – November 2017)
 Total current assets Total Labilities
Non current assets Equity

Less :
Net Non current assets Total Equity
Total assets Total Labilities and owner equity

Luminus Education – Quality Assurance Department

Page 11 of 11 (Form approved by Pearson – November 2017)