Assignment 1

Lecturer's official Excel solution (Moodle). Note: it leaves the $25,000 insurance premium fully prepaid and books no insurance expense, so its net loss is $(209,750) and total assets $4,432,750. The brief states a one-year policy paid 30 Jun, so 6 months ($12,500) is consumed by year-end — the worked solution below amortises it. Flagged with the lecturer.

  1. setup

    Record all 2025 events for ABC Inc. using double-entry, then prepare a Balance Sheet, an Income Statement and a cap table.

  2. 1

    The Foundations Being Tested

  3. 2

    The Headline Journal Entries

  4. 3

    Part (b) — Balance Sheet at 31 Dec 2025

  5. 4

    Part (c) — Income Statement (Year Ended 31 Dec 2025)

  6. 5

    Part (d) — Capitalization Table

Sources

  • Our worked solution: Problem Sets/Assignment 1/Assignment1_Complete.xlsx (Excel submission), Assignment1_Guidebook.docx (entry-by-entry reasoning), Assignment1_Statements_Guidebook.docx (statements & cap table)