AccountingforDecisionMaking InsperaAssignment ACCT1101

ACCT1101AccountingforDecisionMaking InsperaAssignment

Due:3pmMonday 28April

Introduction

Thisassignmentisbasedonafictitiousscenarioofaretailbusiness.Thisscenarioistobe used when answering each part of the assignment.

DuringWeek7,studentsareencouragedtofocusonPart1,2and6oftheassignment.Because ofthis,somequestionshavenotbeendisplayedinthisdocumenttoencourageyoutofocuson these parts first. The other parts of the assignment will be displayed to you in the Inspera Application which will open to students in Week 8 on Monday 14April at 12 noon and will close on Monday 28 April at 3pm.

AnAssignmentWorkshopwillbeheldduringtheWeek7Lectures.TheWeek8tutorialswill bedrop-inconsultationstoallowstudentstoaskquestionsabouttheassignmentrequirements or to seek help on the Topic 1 to 6 learning materials.

If you have not attended all of the Topic 1 to 6 lectures and tutorials, it is important that you watch the recordings before asking questions.

AssignmentScenario

Aussie Furniture Co. is an Australian wholesale retail business that specialises in providing high-quality, affordable furniture to retailers across Australia. The company currently sells three different styles of chairs - targeting various customer tastes and market segments. The companysourcesitsproductsfromamixoflocalandinternationalmanufacturerstoensurethe right balance of cost-efficiency and quality.

Aussie Furniture Co. have provided detailed information about the business transactions, their employees, key suppliers and retail customers and current warehouse inventory items as at 31 January 2025. This information will help to address the requirements outlined in each part of the assignment.

Employees

• SarahThompson-GeneralManager

• JamesClarke- HeadofSalesandMarketing

• EmilyTran-ProductDevelopmentManager

• DavidPatel-Logisticsand SupplyChain Management

• MiaWong-CustomerRelationsManager

Suppliers

• TimberCraftSolutions(Australia)

• MediTechErgonomics(Japan)

• FlexiFabUpholstery(Malaysia)

Retail StoreCustomers

• SugarandSpiceGallery

• Retail FurnitureDirect

• NeoFurnitureStore

CurrentWarehouseInventoryItems

AussieFurnitureCo.currentlyusesaperpetualinventorysystemandtheFirst-inFirst-out (FIFO) cost flow assumption.

• Ergonomicchairs

• Contemporarychairs

• Classic chairs

Transactions

1. February1:Sold500ergonomicchairsfor$200eachand300Classicchairsfor $180eachtoNeoFurnitureStore.Thecustomerhasbeengiven30daystopaytheir account and a 5% discount if they make payment within 10 days.

2. February2:Paid$2,000incashforoffice

3. February3:Received the bill andpaid $3,000in cashforfuelused bythe

4. February4:Purchased600Ergonomicchairsfor$110eachand200ClassicChairs for $102 each on credit from Timber Craft Solutions. Payment is due in 30 days.

5. February9:Paid$11,250inwagestoemployeesfortheweek ended7February

6. February9:Saleof200 Classicchairsfor$185 each,100Contemporary chairsfor $170eachand200Ergonomicchairsfor$205eachtoSugarandSpiceGallery.The customerhasbeengiven 30daystopaytheiraccountanda5%discountif theypay their account within 10 days.

7. February13:Paid$7,500forfourweeksrentonthewarehouseandofficespacefor the period beginning 14 February 2025.

8. February 14: Sold 310 Ergonomic chairs for $150 each and 50 Contemporary chairs for$180eachtoRetailFurnitureThecustomerhasbeengiven30daystopay their account.

9. February 14: Purchased new office furniture for the newly renovated reception area for$12,000Theofficefurniturehasanexpectedusefullifeoffiveyearsandno residual value.

10. February15:On1January,AussieFurniturepaid$5,000inadvanceforanonline advertising campaign targeting the launch of anew outdoor line of products they will be releasing in March. On February 15, the company paid an additional $6,000 for a print advertising campaign. The online and print campaign will begin 1 March 2025.

11. February16:Sold150ContemporarychairstoNeoFurnitureStoreat$165per The customer paid cash.

12. February16:Paid$11,250inwagestoemployeesfortheweekended14February

13. February21: NeoFurniturepaid fortheir purchasefrom1 February

14. February22:Sold100Ergonomicchairsfor$205eachand90Classicchairsfor$180 each to Neo Furniture Store. The customer has been given 30 days to pay their

15. February23:Paid$11,250inwagestoemployeesfortheweekended21February

16. February24:Sold100Ergonomicchairsfor$205eachand300Contemporarychairs for$165eachtoRetailFurnitureThecustomerhasbeengiven30daystopay their account.

17. February 26: Received an order from Sugar and Spice Gallery for 50 Classic chairs for$180Thecustomerpaida35%depositforthegoodsthatwillbedelivered to them on 2 March 2025.

18. February28:Apaymentof$3,300forthebankloan(inclusiveofinterestof$300) was made for the month of February.

19. February 28: The company received their electricity and telephone invoices for the monthofTheelectricityinvoicewas$1,200andthetelephoneinvoicewas $800.Thecompanyhas14daystopay both invoices.

20. February28:Paiddividendstoshareholdersof$15,000.

21. February28:Sold thedeliverytruckfor $20,000Thenon-currentasset was

originally purchased on 1 July 2022 for $120,000. Note: record this transaction after the adjustment entry for the depreciation of the non-current assets.

February2025Requiredadjustmentstoberecordedatmonthend

Adjustment1: Depreciationofassets

AsatJanuary312025,AussieFurnitureCo.ownsthreenon-currentassets.Thecompanyalso purchased and sold non-current assets during the month of February that you will need to consider.Calculatethetotaldepreciationforthemonthforeachoftherelevantassetsusingthe depreciation methods outlined below:

Equipment:Straight-line.

DeliveryTruck:Unitsofproduction.Thedeliverytruckwasdrivenfor5,000kmduringthe month of February.

Forklift:Straight-line.

Officefurniture:Straight-line

Roundupcalculationstothenearestwholedollar.

Exhibit1

Adjustment2:Recognitionofinsurance

Aussie FurnitureCo. needsto recogniseinsurance related to themonth of February. Insuranceof$7,650waspaidinadvancefora12-monthperiodon31January2025.

Adjustment3:Wagesowing

AussieFurnitureCo.needstorecognisethewagesexpensesforthemonthofFebruary.Use the information contained in the transactions previously provided that relate to wages to

determinetherequiredadjustmentamount.Adjustment 4: Recognition of Rent

AussieFurnitureCo.needstorecognisetherentrelatedtothemonthofFebruary.Referto transaction 7 on 13 February to determine the required adjustment amount.

Adjustment5:Recognitionofsupplies

AussieFurnitureCo. has$101 worth ofsuppliesremaining on hand.

AssignmentRequirements

This section of the document provides an overview of the individual parts to the assignment and their associated requirements. Use the case scenario and transactions to complete these individual parts of the assignment.

Part1Instructions:InventoryCalculations

AussieFurnitureCo. purchased andsold inventorythroughoutthemonthofFebruary2025 as shown in the business transactions provided. To record their business transactions in the worksheet, the cost of inventories and the cost of the goods sold must be calculated first.

ThecompanyusestheperpetualinventorysystemandfollowstheFirst-inFirst-out(FIFO)cost flow assumption for all three inventory items.Note: the total balance row is not required. Refer to the FAQ section on Blackboard.

Use the transactions provided above and the inventory schedule templates in the ACCT1101 Inspera Assignment Template Semester 1, 2025Excel file to complete Part 1.

Once you have filled in all inventory tables, you will be able to add them into the Inspera Application after it opens on Monday 14 April at 12 noon and before it closes on Monday 28 April at 3pm.

NotethatyouwillseethefollowingadditionalinstructionsinInsperaforPart1:

Thesetotalswillbeusedintheworksheet.

DONOTuse a thousand separator. For example, the correct way to type OneThousand is 1000, not 1,000 or 1.000.Only enternumbers. Do not enter dollar signs ($) in thecells.

Enterazero(0)wherenoentryisrequiredtoberecordedinthetable(i.e.,ifthereisanopen cellinthetableforanaccountthatisnotaffectedbythe transactionyouarerecording,adda zero (0)).

UsedateformatDDMMYYYY(e.g.01022025).

Part2:Changingcostflowassumptions

This part of the assignment includes randomised questions that ask students how the value of the cost of goods sold for one of the transactions would change if the entity changed cost flow assumptions. This question will be displayed to you in Inspera

Part3:Inventoryexplanation

This partofthe assignment includes randomised questions that ask students what thevalueof ending inventory or the cost of goods sold is for the end of February. This question will be displayed to students in Inspera.

Part4Instructions:CalculatingDepreciation

Thissectionoftheassignmentrequiresstudentstocalculatethedepreciationofthenon-current assets held by Aussie Furniture Co. The calculation of depreciation is required to record adjustment 1 in the worksheet.

Use the information provided in the assignment scenario that relates to the non-current assets (adjustment 1) to complete the depreciation table in the ACCT1101 Inspera Assignment Template Semester 1, 2025Excel file.

Once you have filled in the depreciation table, you will be able to add it into the Inspera Application after it opens on Monday 14April at 12 noon and before it closes on Monday 28 April at 3pm.

NotethatyouwillseethefollowingadditionalinstructionsinInsperaforpart4:

Roundcalculationstothenearestwholedollar.

Answerbystatingyourfinalanswerforeachcellanddonotshowworkings.

DONOTuse a thousand separator. For example, the correct way to type OneThousand is 1000, not 1,000 or 1.000.Only enternumbers. Do not enter dollar signs ($) in thecells.

Part5:Changingdepreciationmethods

This part of the assignment includes randomised questions that ask students to calculate the depreciation expense of one of Aussie Furniture Co.s non-current assets if they were to change depreciation methods. This question will be displayed to you in Inspera.

Part6:Completingtheworksheet

This part of the assignment requires you to record all transactions, including adjustments into theworksheetforthemonthofFebruary.ThereisatemplateforyoutouseintheACCT1101 Inspera Assignment Template Semester 1, 2025Excel file. These transactions are recorded using the methods we have been learning from Topics 1 to 6.

Once you have recorded all the transactions in the worksheet and are in balance, you will be able to add them into the Inspera Application after it opens on Monday 14 April at 12 noon and before it closes on Monday 28 April at 3pm

Note that you will see the following additional instructions forpart 6 in Inspera forpart6:

Enterazero(0)wherenoentryis requiredtoberecordedinthetable (i.e.,ifthereisanopen cellinthetableforanaccountthatisnotaffectedbythe transactionyouarerecording,adda zero (0)).

Part7:Allowancefordoubtfuldebts.

This part of the assignment includes a randomised pool of questions that requires students to calculate the allowance for doubtful debts for Aussie Furniture Co. This question will be displayed to you in Inspera.

Part8:CashFlowStatement

ThispartoftheassignmentrequiresyoutoprepareastatementofcashflowsforAussie FurnitureCo.(Topic4ofthecourse).UseExceltocreateafull(allheadingsincluded)

statement of cash flows and paste it into the Inspera Application after it opens on Monday 14 April at 12 noon and before it closes on Monday 28 April at 3pm.

Part9:Cashflowevaluation

This part of the question requires you to provide a written evaluation of Aussie Furniture Co.s cash flows. This question will be displayed to you in Inspera.

Part10:Businessexpansion

This part of the assignment requires you to provide a written evaluation of whether Aussie Furniture Co. can expand their business operations. This question will be displayed to you in Inspera.

Endofassignmentrequirements