Developing knowledge and skills in the assignment
 
 
The Assignment is a further opportunity to apply the knowledge and skills that you are developing in the course. The Assignment also develops learning outcomes which are highly valued by the employers of accounting graduates: Knowledge, Judgement, Application skills, and Communication skills. Learning outcomes are the knowledge and skills that graduates are expected to know, understand and be able to do as a result of their learning. Go to the Commerce home page to find out more about these important learning outcomes and as you work on the Assignment remember that they are sought after by business and accounting employers.
 
Communication skills
Employers want graduates who are good communicators. Communication skills consistently rank in the most important selection criteria that employers use to recruit graduates (Source: Graduate Careers Australia). The following three aspects of your written communication skills development will be assessed in the assignment to a maximum of 6 marks:
·         Paraphrasing,
·         Being relevant and the art of selection, and
·         An introduction to writing for a professional business audience.
 
 
Please refer to the resource Developing written communication skills in Accounting for Business on the course learnonline page. It has information about the three aspects of your written communication skills development and links to resources that will assist you develop your skills. As you use the resources in your assignment, remember that your studies is the perfect time to start working on these skills and appreciating their importance in your career.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
QUESTION1: Balance Day Adjustments (25 marks)
 

	Debit ($)	Credit ($)
The Chilli Blast Restaurant Trial Balance 30 June 2017
Water Expense	34 581
Delivery Van	39 000
Cash at Bank	59 349
Gas Expense	35 863
Sales Returns & Allowances	11 889
Interest Expense	40 029
Electricity Expense	38 229
Marcelo, Capital		275 284
Accounts Receivable	17 480
Inventory (1 July 2016)	69 779
Prepaid Rent	52 800
Chef’s Wages Expense	52 288
Insurance Expense	10 829
Purchases	263 829
Advertising Expense	35 529
Office Cleaning Expense	30 829
Office Supplies	13 179
Marcelo, Drawings	68 894
Cooking Oil Disposal Expense	23 512
Repairs and Maintenance Payable		21 579
Accumulated Depreciation – Refrigeration Equipment		43 454
Refrigeration Equipment	74 829
Discount Allowed	12 129
Prepaid Insurance	3 840
Shop Cleaning Expense	69 229
Shop Furniture	40 829
Discount Received		13 409
Loan		366 714
Shop Staff Wages Expense	59 919
Accounts Payable		23 332
Sales		424 521
Deep Fryer	29 200
Unearned Sales		19 570
Totals	1 187 863	1 187 863

 
 
 
(Continued on the next page)
 
 
 
Marcelo has emailed you the following list of account information related to the year ended 30 June 2017:
 
1.    On 30 June, Marcelo estimated 2.5% of Accounts Receivable will not be collected as this amount has been outstanding for 270 days.
 
 
2.    The Office Supplies on hand at 30 June 2017 was $1 843.
 
 
3.    The deep fryer was purchased on 1 April 2017 and will be depreciated at 15% per annum and will have no residual value (calculate and record the depreciation expense for the year).
 
 
4.    The Refrigeration Equipment is expected to have a useful life of six years and have a $2 829 scrap value (calculate and record the depreciation expense for the year).
 
 
5.    The bank has approved an overdraft facility for $20 500 for The Chilli Blast Restaurant.
 
6.    Rent was paid on 1 July 2016 for a two year period ending 30 June 2018.
 
 
7.    $18 670 of Unearned Sales represent receipts for catering at the Chillian Music Festival which was catered for on the 23^rd June 2017.
 
 
8.    The Shop Furniture is expected to have a useful life of five years and have a residual value of $829 (calculate and record the depreciation expense for the year).
 
 
9.    Chef’s wages payable but not recorded as at 30 June are $3 570.
 
 
10.  The 6 month Insurance policy (policy #25223) of $3 840 was paid on February 1 2017.
 
 
11.  The Delivery Van was purchased on 1 October 2016 and is expected to have a useful life of eight years and have a residual value of $2 000 (calculate and record the depreciation expense for the year).
 
 
** If your calculation results in an answer with decimal places please round to the nearest dollar i.e. 1.5 will become 2, 1.4 will become 1.
 
REQUIRED:
 
a.    It is now the end of the financial year and Marcelo requires you to prepare the Balance Day Adjustment Journals for The Chilli Blast Restaurant where required.Marcelo has provided you with the General Journal document (overpage) and he has specifically asked you to include narration (explanation) for each journal entry.                                                                             (25marks)

Date	Details	Debit ($)	Credit ($)

 
 
 
QUESTION 2: Financial Statement (20 marks)
 
Arabella’s Apothecary is a retail seller of potions and prescriptions to those in the practice of magic.The following partially completed Trial Balance for Arabella’s Apothecary has been prepared at year end by Arabella but she realises it is not in the correct order and she has not yet included all the Balance Sheet accounts, however there is sufficient information to complete an Income Statement.
ARABELLA’S APOTHECARY SHOP - TRIAL BALANCE
AS AT 30 JUNE 2017
 
                                            Debit ($)                     Credit ($)

Shop Shelving	255000
Delivery Van	120000
Sales		1560000
Purchases	576000
Insurance Expense	19500
Allowance for Doubtful Debts		4932
Accounts Receivable	82200
Bank Overdraft		3000
Shop Water Expense	12000
Discount Received		6000
Interest Expense	12300
Office Water Expense	4140
Loan (repayable 1 Oct 2018)		138000
Discount Allowed	3450
Bookkeepers Wages	75 000
Shop Staff Wages	256386
Accumulated Depreciation – Office Furniture & Fittings		18900
Accounts Payable		23 268
Doubtful Debts	4932
Freight Inwards Expense	6450
Advertising Expense	14100
Shop Rent Expense	196 000
Office Cleaning Expense	35400
Depreciation – Shop Shelving	36000
Interest Received		4500
Unearned Revenue		3600
Depreciation  - Delivery Van	30000
Accumulated Depreciation – Shop Shelving		72000
Arabella, Capital (1 July 2015)		400650
Depreciation – Office Furniture & Fittings	18900
Inventory (1 July 2016)	157200
Office Furniture and Fittings	96000
Office Rent	53 750
Freight Out	22260
Electricity Expense	29100
Purchase Returns and Allowances		18600
Arabella, Drawings	108000
Sales Returns & Allowances	2850
Shop Cleaning	21600

 
 
Additional Information:
 
·         The electricity expense is allocated as 40% to the office and 60% to the shop
·         The insurance expense is allocated as 30% to the office and 70% to the shop
·         The inventory stocktake revealed a closing stock balance at 30/6/17 as $54,900
 
 
REQUIRED:
 
Prepare a fully classified Income Statementusing the partially prepared Trial Balance provided in the question.
 
 
 
 
 
 
 

 
QUESTION 3: Accounting Concepts (10 marks)
 

The Special – LEGO World Shop     Income Statement (Extract)   For the year ending 30 June 2017             $ $ Sales     450,000 Opening Inventory 250,000   add: Purchases 120,000   less: Closing Inventory 280,000 90,000 Gross Profit   360,000               Dragons and Vikings Toy Shop
Income Statement (Extract)
For the year ending 30 June 2017
		$
Sales		468,000
Cost of Sales		90,000
Gross Profit		378,000

 
ACCT 1008 Accounting for Business assignment 代写

Required
 
(i)         You are a graduate working in an accounting firm and the Audit Manager has requested that you answer the following in a letter format which he will then keep on file regarding these two entities which are to be audited later in the year. In the letter identify the two methods of recording inventory and what inventory method each business is using. Explain how you can determine this from the above information.                                                                                (3 marks)
 
(ii)      Briefly explain which of the two methods provides:
 
·         the higher gross profit figure when recording the same transactions?
·         the most information for control purposes and identify two ways in which the method you have chosen provides more information for control purposes.
                                                                             (3 marks)
 
(iii)     Why do businesses that use the perpetual inventory system continue to perform a physical inventory stocktake at least once each accounting period?             (2 marks)
 
 
(iv)  When the periodic inventory system is used, what does the balance of the inventory account (during the accounting period) represent?                          (2 marks)
 
 
 
 
QUESTION 4:   Cash Flow Statement (15 marks)
 
You are provided with the following financial information for Savvy Surfware:

SAVVY SURFWARE COMPARATIVE BALANCE SHEETS                         AS AT DECEMBER 31                                                                            Current Assets        2017   2016   Cash on Hand $1 200   $4 000   Cash at Bank -   1 009   Accounts Receivable (net) 5 200   4 500   Inventory 28 000   18 000   Prepaid Expenses    1 650 $29 250 650 $28 300 Non Current Assets         Plant & Equipment 83 500   64 000   less Acc. Depreciation (23 000) 60 500 (17 600) 46 400 Total Assets   96 550   74 559           Current Liabilities         Bank Overdraft 6 402   -   Accounts Payable 4 000   2 800   Expenses Payable 780   790   Tax Payable 890 12 072 1 200 4 790 Non Current Liabilities         Bank Loan   20 000   20 000 Total Liabilities   32 072   24 790 Net Assets   $64 478   $49 769           Equity         Capital   64 478   49 769     $64 478   $49 769

 
 
 
(continued over page)
 
 
 

SAVVY SURFWARE INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31 2017       Net Sales   $107 000 Cost of Sales   45 200 Gross Profit:   61 800 Other Revenue:     Discount Received $280   Interest Revenue 40 320     62 120 Expenses:     Selling & Admin Expense 16 500   Doubtful Debts Expense 354   Depreciation Expense 5 400   Interest Expense 3800 26 054 Profit before tax   36 066 Income Tax Expense   3 378 Profit   $32 688

 
 
 
 
 
ANSWER THIS QUESTION ON THE PRO FORMA PROVIDED
 
REQUIRED:
 
a.      Prepare a Statement of Cash Flows in the pro forma providedbelow and show all calculations (an answer without supporting calculations will receive zero)
                                                                                                                (15 marks)
 
           
 
 
 
 
 
 
 
 
 
 
 
 

 
SAVVY SURFWARE
Cash Flow Statement
for the year ended 31 December 2017
 
Cash Flows from Operating Activities $                $
Receipts from customers                                                                                                        
Payments to suppliers & employees                             ______                                         
Cash generated by operations                                                    
Interest paid                                                                                                                              
Income tax paid                                                                 ______               _______
 
Cash Flows from Investing Activities  
Interest received                                                                           
Payment for plant and equipment                                 ______                  _______       
 
Cash Flows from Financing Activities
Drawings paid                                                                    ______                  _______       
 
Net increase / decrease in cash held
Cash at the beginning of the year                                                               _______          
Cash at the end of the year                                                                        ___  ___
 
 
Calculations below & on next page please
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The following aspects of students’ written communication skills development are also awarded a totalof 6 marks.
PARAPHRASING
·      Presenting ideas and information that student read in their own words,
·      Not simply taking what someone else has written and changing a few words. It is about translating another person’s ideas into the student’s own words.
Mark (maximum 2):
 
BEING RELEVANT
Does what is written contribute to answering the question(s)
·      Setting out to specifically answer the question(s) by using relevant information,
·      Staying ‘on track’ with answers,
·      Avoiding straying from the question and going off on irrelevant tangents.
Mark (maximum 2):
WRITING FOR A PROFESSIONAL BUSINESS AUDIENCE (including good presentation)
·      The written work is clear and understandable,
·      Where applicable, the written work is based on the facts and available evidence,
·      Exaggeration and bold statements which are not supported by the facts and evidence are avoided.
Good presentation
·      The written work contains no spelling and grammatical errors. Obvious evidence of editing displayed. (Where the work contains any spelling and grammatical errors, it cannot be awarded 6 marks),
·      Any headings and sub-headings display properly, and are used consistently throughout the document,
·      Page numbering is used. It is usual for page numbering to commence on page 2 of a business document as “2”,
·      Font size and font style are used consistently throughout the document,
·      If applicable, requested templates are used.
Mark (maximum 2):
 
TOTAL WRITTEN COMMUNICATION SKILLS MARK (maximum 6)
 
 ACCT 1008 Accounting for Business assignment 代写