Understanding the Concept of Accounting and Financial Analysis

Introduction1

Discussion1

Section A1

Part A11

Part A23

Part A36

Part A48

Part A510

Section B12

B.1) Journal Entries12

B.2) Journal Ledgers (T. Accounts)14

B.3) Trail Balance of Wan Chai Limited18

B.4) Income Statement of Wan Chai Limited19

B.5) Balance Sheet of Wan Chai Limited20

Conclusion21

References22

Understanding the Concept of Accounting and Financial Analysis



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. There are two sections of the assignment; in the first section we are going to make an analysis of two companies operation in the same industry. While in section two, we are going to construct a complete accounting cycle of Wan Chai limited.



Discussion

Section A

Section A of the assignment is directed at identifying and exploring the financial statistics of two companies that are listed on ASX (Australian Security Exchange). ASX is Australia's main security exchange. It was established in 2006 after the merger of Sydney Futures Exchange and Australian Stock Exchange. We are selecting two companies Woodside Energy Limited and Australian Worldwide Exploration Ltd as per requirement of the assignment. The selected companies are operating their business successfully in the petroleum and gas industry. Detail about the companies and their financial statistics is given in the next parts of the assignment (Indices).



Part A1

Woodside Petroleum Energy Limited

WPL is an Australian petroleum production and exploration company. One can say that WPL is a market leader or largest petroleum company in Australia. It was founded on 26th July, 1954. Peter Coleman is working as a chief executive officer of the company. WPL is publically traded on the Australian Security exchange and is headquartered in the Perth, Australia. Approximately 3000 employees are working under the shelter of Woodside Energy Limited. Operations of WPL are mainly classified into 4 areas; Pluto LNG Project, Sunrise LNG Development, Browse LNG development and North West Shelf Project. Woodside Petroleum Energy is also successfully operating in the international arena; its international assets consist of acreage in the Brazil, Canary Islands, Peru, Korea and Unites States of America. In the Gulf of the Mexico WPL possess deep water production and exploration facilities. WPL operates in the following core areas (Woodside, 2013).

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In Australia, Woodside is considered as one of the largest producer and dealer of the liquefied natural gas. It is operating in the field from last 20 years.

Woodside is successfully conducting its operation in several pi fields and production units. The oil production and exploration division provides the company a stable and strong cash flow statement.

Woodside is considered as the most active company in the exploration of natural resources in Australia. Woodside has explored round 40% of oil reserves in the region. It posses a high number of offshore contracts in the country than any other company. It is also strives to gain competence and efficiency in the field of geology and ...