Get Cheapest Assignment in Australia, UK, US, UAE, Canada and NZ Order Now

ACCT6002 Accounting Fundamentals

0 Comments

Do you need help for ACCT6002 Accounting Fundamentals

ASSESSMENT BRIEF
Subject Code and NameACCT6002 Accounting Fundamentals
AssessmentAssessment 2 – Case Study
Individual/GroupIndividual
Length(1,500 words +/- 10%)
Learning Outcomes  Explain the accounting cycle and apply double entry accounting principles to process transactions.   Differentiate between periodic and perpetual inventory systems and apply appropriate accounting procedures.   e) Prepare an accounting worksheet, Income Statement, Statement of Changes in Equity and Balance Sheet for sole proprietors and partnerships.   g) Interpret, understand and analyse financial statements for decision making, and communicate their significance to accounting and non-accounting professionals.
SubmissionBy 11:55pm AEST/AEDT Sunday of Module 5.1 (week 9)
Weighting30%
Total Marks100 marks
ACCT6002
ACCT6002

Context:

The purpose of this assessment is to apply the conceptual and technical aspects of accounting and prepare relevant business financial statements. Students are expected to contenxtualise and evaluate accounting information presented in statements for decision making purposes. Each question uses realistic data and the professional practices similar to that found in workplaces.

ACCT6002_Assessment Brief 2_Individual Case Study

Submission Instruction

Please aim to complete this assignment a few days prior to the due date to allow for any unforeseen circumstances such as illness, holidays, family issues, work commitments etc. You may submit the assignment early if you have other commitments around the due date.

All times listed are local (Sydney) times. Please ensure you factor in any time difference between Sydney and your location when submitting your assignment, to avoid incurring any late submission penalties.

Please note the following important instructions relating to the assignment format and submission:

  • Note that this is an individual piece of assessment. You will need to work individually to prepare a response to ALL of the questions listed in the assessment.
  • You must submit your assessment in one Excel file. Any submissions in any other file formats will not be accepted.
  • Each question (including all sub-questions) should be presented in a single worksheet. As there are 5 questions in this assessment, your Excel file should contain 5 worksheets in total.
  • You cannot scan handwritten responses and submit. All answers must be typed in Excel.
  • Your assessment needs to be submitted though the submission link available on the Blackboard. Assignments submitted via e-mail (or any other method) will NOT be accepted.
  • Make sure that you upload the correct file. If you discover (after the due date) that you have uploaded a draft version or the wrong file completely, you will not be allowed to submit a second file.

Question 1: Preparation of Adjusted Trial Balance

Josh Clarendon operates a small retail store. The unadjusted trial balance of Josh’s Retail Store isshown below.

Josh’s Retail Store Unadjusted Trial Balance As at 30th June 2021
AccountDebit ($)Credit ($)
Cash at Bank35,000 
Accounts Receivable5,000 
Inventory14,600 
Office Supplies2,400 
Motor Vehicle15,000 
Accumulated Depreciation – Motor Vehicle 4,000
Accounts Payable 3,000
Josh Clarendon, Capital 44,000
Josh Clarendon, Drawings2,000 
Sales Revenue 57,000
Sales Returns and Allowances  2,000 
Purchases15,000 
Purchases Returns and Allowances 4,000
Salaries Expenses11,000 
Rent expense10,000 
Total112,000112,000

The following additional information was not considered while preparing unadjusted trial balance:

  1. The Sales Revenue account includes $5,000 for the services to be provided in August 2021.
    1. The rent expense account includes an amount of $1,000 paid in advance for July 2021.
    1. The unused office supplies on hand totalled $1,500.
    1. Estimated depreciation on the motor vehicle is $2,000.

Note: In addition to those accounts listed in unadjusted trial balance, the chart of accounts of Josh’s Retail Store contains the following accounts: Prepaid rent, Unearned Revenue, Office Supplies Expense and Depreciation Expense.

Required

Prepare adjusted trial balance using the template provided over the page.

Josh’s Retail Store Worksheet as at 30 June 2021
 Unadjusted Trial BalanceAdjustmentsAdjusted Trial Balance
Account NameDrCrDrCrDrCr
Cash at Bank35,000     
Accounts Receivable5,000     
Inventory14,600     
Office Supplies2,400     
Motor Vehicle15,000     
Accumulated Depreciation – Motor Vehicle 4,000    
Accounts Payable 3,000    
Josh Clarendon, Capital 44,000    
Josh Clarendon, Drawings2,000     
Sales Revenue 57,000    
Sales Returns and Allowances2,000     
Purchases15,000     
Purchases Returns and Allowances 4,000    
Salaries Expenses11,000     
Rent expense10,000     
       
       
       
       
Total112,000112,000    

Gym Bicycles is a retail business that purchases racing bicycles from suppliers and sells them to customers at a higher price. The business is registered for GST and uses perpetual inventory system. The following transactions occurred during March 2021.

DateDetails
  Mar-03Purchased 500 bicycles on credit for $385 each (plus GST) from Redline Central, terms 5/15, n/30.
  Mar-05Sold 275 bicycles on credit to Sun Bicycles for $572 (including GST); terms 3/10, n/30.
Mar-09Received credit for the 8 damaged bicycles returned to Redline Central.
Mar-11Paid Redline Central for the purchase of bicycles on 3rd March.
  Mar-13Sun Bicycles returned 6 bicycles as they were defective. Credit was granted for returned products.
Mar-14Received payment from Sun Bicycles for the sales on 5th March.

Note: Gym Bicycles’s chart of accounts contained the following accounts: Cash at Bank, Inventory, Accounts Receivable, GST Receivable, Accounts Payable, GST Payable, Sales, Sales Return and Allowances, Discount Received, Discount Allowed, Cost of Sales.

Required

Prepare journal entries for the above transactions for the month of March 2021 for Gym Bicycles.

Question 3: Preparation of Financial Statements

Financial statements for Mandy’s Retail Shop are prepared annually. The adjusted trial balance amounts at June 30 are shown below.

Mandy’s Retail Shop Worksheet as at 30 June 2021 Adjusted Trial Balance
Account NameDrCr
Cash at Bank39,000 
Accounts Receivable10,000 
Inventory (1st July 2020)19,600 
Office Supplies1,280 
Motor Vehicle20,000 
Accumulated Depreciation – Motor Vehicle 8,000
Accounts Payable 1,050
Mortgage payable 45,000
Mandy, Capital 29,500
Mandy, Drawings6,000 
Sales Revenue 59,650
Sales Returns2,900 
Purchases24,500 
Purchase Returns 2,500
Salaries Expense12,000 
Rent Expense6,000 
Interest Expense2,700 
Unearned Revenue 1,300
Interest Payable 900
Office Supplies Expense1,920 
Depreciation Expense2,000 
Total147,900147,900

The end-of-period stocktake shows an inventory balance of $11,320 on 30 June.

Required

Prepare the following:

  1. Income Statement
  2. the closing entries on 30th June 2021.
  3. Statement of Changes in Equity
  4. Balance Sheet in narrative format

Question 4: Special Journals

Justin opened a corner store on 1 July 2021. He balances his books at the end of each month and uses special journals and the periodic inventory system. Transactions for July 2021 were as follows:

DateDetails
5-JulPurchased inventory from Orion Ltd. on account for $6,500 plus GST. The credit term is 2/15, n/30.
14-JulSold $2000 inventory plus GST to Metro Ltd, the credit term is 3/10, n/30.
18-JulPaid Orion Ltd. for 5th July purchase. Cheque No.103.
27-JulReceived cash payment from Metro Ltd.
31-JulRecorded depreciation expense for furniture, $300.

The chart of account for Justin’s Corner Store is shown below:

Cash at Bank100Accounts Payable Control200
Accounts Receivable Control110GST Payable210
Office Supplies120Justin, Capital300
GST Receivable140Sales400
Furniture150Discount Received401
Accumulated depreciation – Furniture151  
Purchase501  
Purchase Return and Allowances502  
Discount Allowed510  
Salary Expense520  
Depreciation Expense530  

Required

Prepare the journal entries for the transactions above in the relevant journal books. Use Cash Receipts Journal, Cash Payments Journal, Purchases Journal, Sales Journal and General Journals where applicable. For each transaction, you need to do only one journal entry.

You may use the templates provided over the page.

Cash Receipts Journal

p. 1.

    Date    Account  Post Ref.DebitsCredits
Cash at BankDisc. AllowedGST Payable  SalesGST PayableAcc. Recei.  Other
          
       
       

Cash Payments Journal

p. 1.

  Date  Account  Ch. No.  Post Ref.DebitsCredits
  OtherAcc. Payable  PurchaseGST Rec.Cash at BankDisc. ReceivedGST Rec.
           
       
       

Purchases Journal

p. 1.

DateAccountTermsPost Ref.PurchasesGST ReceivableAccounts Payable
       
   
   

Sales Journal

p. 1.

DateAccountTermsPost Ref.SalesGST PayableAccounts Receivable
       
   
   

General Journal

p. 1.

DateAccountPost Ref.DebitCredit
     
  
  

Question 5: Financial Statement Analysis

Sarah works at a public company called JPG Manufacturing Ltd. She has observed that the company is trying to expand its operation in the market over the past one year. The management has heavily invested in plant and equipment over this period. Considering the high growth potential of the business, Sarah is planning to invest in this company by purchasing shares. She consulted with her friend Linda regarding this plan. After reviewing JPG Manufacturing’s balance sheet for past two years, Linda commented, “While I understand that this company is focusing on growth, they have taken a risky approach to achieve the growth”. Do you agree with Linda’s comment? Why or why not? Justify your answer.

Note: You will not be penalized if you do not use financial statement analyses ratios to answer this question. You need to provide explanation of why you agree or not-agree with Linda’s comment.

JPG Manufacturing Ltd Comparative Balance Sheet As at 30th June 2020 and 2021
 20202021
ASSETS  
Current Assets  
Cash at Bank354009,300
Accounts Receivable6270076,650
Inventory4800060,600
Other current Assets96008,850
Total Current Assets155700155400
Non-current Assets  
Land and Building8100081,000
Plant and Equipment93000285,000
Furniture87007,950
Long-term investment1380013,500
Total Non-current Assets196500387450
Total Assets  
352200542850
  LIABILITIES  
Current liabilities  
Accounts Payable7860078,150
Total current liabilities7860078150
Non-current liabilities  
Long-term debt123600313,200
Total non-current liabilities123600313200
Total Liabilities  
202200391350
  EQUITY  
Share Capital150000151,500
Total Equity150000151,500
Total Liability and Equity                              352200             542,850

Learning Rubric: Assessment 2

  Assessment Criteria  Fail (Unacceptable) 0- 49%  Pass (Functional) 50-64%  Credit (Proficient) 65-74%  Distinction (Advanced) 75 -84%  High Distinction (Exceptional) 85- 100%
UnderstandingShows very little to noShows limitedThorough knowledge orHighly developedA sophisticated
and ability tounderstanding of how tounderstanding of how tounderstanding of theunderstanding of theunderstanding of the
analyse and/orapply the accountingapply the accountingaccounting systemaccounting systemaccounting system
critiquesystem technique to thesystem technique to thetechniques relevant totechniques relevant to thetechniques relevant to the
accountingcase study questions.case study questions.the case study.case study.case study.
techniques and     
methods used in practice and financial information thatKey components of the assignment are not addressed.Has answered some parts incorrectly.   
are prepared.     
   Demonstrates little to no    
 capacity to explain and    
 apply relevant concepts.    
   Has answered most parts    
 incorrectly.    
    10%     
Knowledge and understanding of accounting concepts, techniques and processes       40%Limited awareness of relevant accounting information required for business decisions     Difficulty and/or confusion in identifying correct accounting concepts, tools and processes required for case study questionsUnderstanding and being able to identify relevant accounting information for business decisions   Understanding a range of accounting techniques and processes available for generating and analysing information   Ability to use appropriate accounting techniques andUnderstanding rationale for selecting specific accounting tools and processes   Understanding and being able to explain quantitative and qualitative characteristics of accounting information useful for business decisionsThoroughly understanding the accounting concepts, techniques and processes   Being able to justify selection of specific accounting tools and processesThoroughly understanding accounting concepts, techniques and processes, and accounting information required for solving practical problems   Being able to critically justify selection of applicable accounting tools and processes
  processes   
Discuss and applyNo or little use ofApplying correct steps inIdentify and explainAnalysing quantitative andCorrectly preparing and
accounting tools,accounting informationpreparingquantitative andqualitative characteristics ofinterpreting different
concepts andfor decision makingaccounting reportsqualitativeaccounting information, andaccounting statements.
techniques to prepare  characteristics ofapplying analysis to 
accounting information that is useful for decision making,Difficulty and/or confusion in preparing accounting reportsApplying appropriate accounting proceduresaccounting information, which are useful for business decisionssolve practical problems   Correctly preparing andCritically justifying business decisions using relevant accounting
    interpreting differentinformation
 Difficulty and/or confusion in identifying and applying correct accounting procedures  accounting statements. 
  40%     
Effective communicationDifficulty in explaining rationale for selected accounting tools and processesMostly clear information presentation, with some minor errors       Evidence of attempts to make clear to audience, the rationale and application of selected accounting tools and processesMostly clear and understandable presentation of informationClearly presented and adequately justified responses   Good references to quantitative and qualitative information where applicableClearly presented and adequately substantiated responses, which indicate full understanding and thorough application of relevant accounting tools and processes   Sufficiently substantiated discussion of quantitative and qualitative information
10%