Accounting Analysis of Quattro Paperless

Accounting Analysis of Quattro Paperless

Introduction

Use of accounting techniques is vital for every business, without an effecting management of accounts a company would not generate desired goals. This assignment of our entirely focuses on understanding and implementing the accounting concepts used in the organizations. The report focuses on outlining the charts of accounts, trail balance, balance sheet, income statement and bank reconciliation of a company name Quattro

Discussion

1. Journal Entries

Journal entry is a very basic concept used in the accounting system. In journal entry we basically record each transaction into accounting journals. Most commonly it is known as book keeping. In passing a journal entry, the amount being recorded is either classified as debit or credit. The end result or total of debit or credit side will always remain equal (John A. Tracy, 2011). Table given below is showing the journal entries for the Quattro, such entries are developing from the transaction information provided in the given case study.



S. No.

Description

Debt

Credit

1

Cash

$ 60,000

 

Capital From Susan & Steven (25000 * 1.20)

 

(30,000)

Capital From Stella & Stuart (25000 * 1.20)

(30,000)

Susan, Steven, Stella and Stuart invested their capital in the Quattro

 

 

2

Bank Account

120,000

 

Cash

 

$ 12,0000

To record the transfer of 120,000 cash into bank account of Quattro

 

 

3

Refurbished mobile document destruction units

160,000

Account Payable to ShredMaster

160,000

Purchased two Refurbished mobile document destruction units from ShredMaster incorporation.

4

Refurbished six-year-old scanners

40,000

Account payable to DigitizeMe

40,000

Purchased refurbished six-year-old scanners from DigitizeMe Incorporation

5

Installation of scanners, customize and paint

20,000

Account Payable CustomTruck

20,000

CustomTruck reconfigured the mobile document destruction units

6

Furniture, Equipment & supplies Expenses

3,200

Cash

3,200

Purchase supplies, Furniture and equipment on cash

7

Advertising expense

1000

Cash

1000

Paid cash of 1000 for advertising expenses

8

Salary Expense

48,000

Cash

48,000

Paid salary of 48,000 to employees

9

Insurance Expense

18,000

Cash

18,000

Paid 18,000 for insurance expense

10

Quick Prints

800

Cash

800

Paid 800 in the form of quick print expenses

11

Dividend Payable (50,000 * 0.10)

5000

Cash

5000

Dividend of 0.10 paid to the shareholders

2. T Accounts (general Ledger)

Journal ledgers are also known as T-accounts. It is simply provides a summary of different accounts. Again there are two sides of a T-account (debit, credit). It is a principal account book that records all transactions taking place under the head of a specific account. It also represents beginning and ending balance (Lehman, 2011).

Given below are the ledgers of different accounts of Quattro. They will assist us in the construction of trail balance. In order to highlight the ending value of a particular account we have present it in a green color.

Account Title: Cash

SR

Description

Amount

SR

Description

Amount

1

Capital From Susan, Steven, Stella and Straut

60000

2

Bank Account

12,000

 

 

 

6

Furniture & supplies

3,200

 

 

 

7

Advertising expense

1,000

 

 

 

8

Salary Expense

48,000

 

 

 

9

Insurance Expense

18000

 

 

 

10

Quick Prints

800

 

 

 

11

Dividend Payable

5,000

 

Total

60,000

 

Total

88,000

 

Balance Carried down

28,000

 

Balance broad Down

28000

Account Title: Capital

SR

Description

Amount

SR

Description

Amount

 

 

 

1

Capital From Susan & Steven

30,000

 

 

 

 

Capital From Stella & Stuart

30,000

 

Balance Carried Down

60000

 

 

 

 

 

 

 

Total

60,000

 

 

 

 

Balance board Down

60000

Account Title: Capital

SR

Description

Amount

SR

Description

Amount

1

Bank Account

120,000

 

 

 

 

 

 

 

Balance c/d

120,000

 

Total

120,000

 

 

 

 

Balance B/d

120,000

 

 

 

Account Title: Refurbished mobile document destruction units

SR

Description

Amount

SR

Description

Amount

3

A/P to ShredMaster

160,000

 

 

 

 

 

 

 

Balance c/d

160,000

 

Total

160,000

 

 

 

 

Balance B/d

160,000

 

 

 

Account Title: Account Payable to ShredMaster

SR

Description

Amount

SR

Description

Amount

3

Mobile Destruction Unit

160,000

Balance c/d

160,000

Total

160,000

Balance B/d

160,000

Account Title: Refurbished six-year-old scanners

SR

Description

Amount

SR

Description

Amount

4

A/P to DigitizeMe

40000

 

 

 

 

 

 

 

Balance c/d

40,000

 

Total

40,000

 

 

 

 

Balance B/d

40,000

 

 

 

Account Title: Account payable to DigitizeMe

SR

Description

Amount

SR

Description

Amount

3

Refurbished six-year-old scanners

40,000

Balance ...