financial reports – Global Homework Experts

You are finalising financial reports for a client for the year ending 30th June 2016. The client is a growing business called Franks Fishing Charters that sells fishing equipment, and provides both fishing charters and workshops. Income is generated by selling fishing equipment, taking customers out on fishing trips and by running short workshops to help improve participants fishing skills. The owner, Frank, has the office manager prepare the financial reports with the assistance of a first year undergraduate accounting student undertaking an internship with the firm. Unfortunately, the office manager has not studied accounting and believes they made a number of mistakes when preparing the end of year financial reports. Frank has asked you for assistance in finalising the financial reports (and wants you to apply the rules of accrual accounting in preparing the reports. You are given all of the information used to prepare the financial reports for the year ending 30th June 2016. Disregard all taxes including GST and PAYG for this question. During your initial investigation you have identified the following issues which may (or may not require further action: 1. All office staff work Monday to Friday. Total fortnightly wages are $12,600 (seven staff each paid $1,800). Office staff wages had been paid and recorded on the 3rd and 17th of June 2016 All employees who work are paid on the 3rd and 17th of June for work done up to and including the 3rd and 17th of June respectively. No other entries have been processed relating to wages in June 2016 2. The firm controls a number of non-current assets. To make things simple, the owner decided all non-current assets should be depreciated using the straight line depreciation method over

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