Preparation of Financial Statements, Income Staments, Trial balances, T-accounts, and Allocation, Apportionment and Re-apportionment

Task 1(a):Record the following transactions of Mathew’s business into the double-entry bookkeeping accounts (T-accounts), balance off the ledger accounts and prepare a trial balance at the end of the month.
Task 1 (b):Discuss why accounting principles are important in the process of recording, classifying and summarising financial information.
Task 2(a):Prepare the income statement of James business for the year ended 31 December 2019, together with the statement of financial position at that date.
Task 2(b): Explain how the information provided by accounting equation is different from the financial statements of a business.
Task 3(a):Using the information above, prepare a table showing allocation, apportionmentand re-apportionment of production overheads.
Task 3(b):Calculate the budgeted overhead absorption (OAR) rates as follows: i.A machine hour rate for the Cutting cost centre. ii.A direct labour hour rate for the Stitching cost centre.
Task 3(c):Explain why marginal costing techniques is generally used for short-term decision making.
Task 3(d):Break-Even Analysis has been described as a purely a theoretical exercise that is not useful in practical situations. Discuss the limitations/assumptions underpinning this technique.