ACCT 1011
ACCT 1011
Accounting for Business, SP3 2023
Assignment
100 marks - Weighting 30%
Due 12 pm Adelaide time (ACST)
on 22nd May 2023
Name:
Student ID:
Please note that this is anindividual assessment.
There is the temptation for some students to plagiarise/cheat. This may be done by copying other students work, buying an assignment, using an answer from a homework site, etc. I am going to reiterate that it is better to submit your own work and receive useful feedback than to submit a piece of work that is not your own. If you submit work that is not entirely your own, a marker cannot possibly know what you understand and what you don't understand and provide quality feedback to assist you.
The outcome for an Academic Integrity breach is zero at best through to suspension.
All assignments will be put through Turnitin and will be checked by the Academic Integrity Office for matches to other students work both from this study period and prior study periods and other sources. All the information required to complete the assignment is provided in the ACCT1011 course material, therefore, do not go beyond the course materials. Any matches to external sources will be reviewed carefully and must be referenced.
Prior to submitting the assignment, please read below and sign.
I declare the work contained in this assignment is my own, except where acknowledgment of sources is made. I authorise the University to test any work submitted by me, using text comparison software, for instances of plagiarism. I understand that this will involve the University or its contractor copying my work and storing it in a database to be used in the future to test work submitted by others.
The attachment of this statement on any electronically submitted assignments will be deemed to have the same authority as a signed statement.
Signed: Type your name here Date:
Assessment/grade /100 Assessed by: Office Use Only
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.
The due date and time are stated in the course outline, on the course website, and above. All times listed are local (South Australia) times. Please ensure you factor in any time difference between Adelaide (South Australia) 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:
IMPORTANT - Failure to follow these instructions may result in your assignment not being marked, so please read them carefully.
You must complete your assignment using the assignment Word document provided.
There is no need to delete any part of this template.
Do not convert this document into any other format (.docx or .doc are the only permissible file formats that can be uploaded).
You can only submit this one file.
If you use Excel for calculations, ensure you only copy and paste as a table. Do not embed spreadsheets as a screenshot in the assignment Word document.
Do not include any files as pictureswithin the assignment Word document.
You cannot scan handwritten responses and submit. All assignments must be word processed.
Remember to fill out page 1 of the assignment.
All assignments must be lodged via the Course site, assignment submission link located on the same page as this assignment.
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.
Note that this is an individual piece of assessment. Pay particular attention to the Declaration of Originality that you must agree to when submitting your assignment electronically.
Please also be aware that extensions to assignment due dates will only be approved in exceptional circumstances and for reasons that could not have been foreseen at the commencement of the study period. All applications for extensions must be submitted via the Extensions link provided on the course website and must include an explanation of the circumstances under which the extension is being sought and relevant supporting documentation must be included with the original application. Please note that circumstances such as unusual workload (university or employment), taking a holiday, being overseas or any situation within the control of the student do not qualify as grounds for an extension.
Please note that extension requests made within 7 days of the due date must also include a draft of the work you have completed to that point.
All the best with your assignment.
QUESTION 1: Balance Day Adjustments (18 marks)
Below is the unadjusted Trial Balance as at 30 June 2023 for Gracies Biscuits, a retail business specialising in biscuits, cakes and other baked products. It is owned and operated by Gracie Beau who is the sole proprietor. Gracie Beau does a lot of business bookkeeping during the year. However, she sends information through to Ollie and Ben Accounting Solutions at the end of the financial year for the necessary balance day adjustments to be completed.
Gracies Biscuits
Unadjusted Trial Balance
For the year ended 30 June 2023
Debit ($) Credit ($)
Cash at Bank 159,860
Accounts Receivable 304,320
Inventory 946,588
Prepaid Insurance 18,800
Office Supplies on hand 19,750
Furniture & Fittings 195,100
Accumulated Depreciation Furniture & Fittings 47,929
Delivery Vans 240,000
Accumulated Depreciation Delivery Vans 86,069
Computer/Printer package 9,800
Accounts Payable 180,180
Loan Payable 780,000
Gracie Beau Capital (1 July 2022) 537,113
Gracie Beau Drawings 187,200
Sales Revenue 3,623,297
Sales Returns and Allowances 66,160
Cost of Sales 1,854,950
Discount received 86,380
Freight inwards 62,400
Sales Salary Expense 455,520
Delivery Expense 121,680
Advertising Expense 179,400
Rent Expense 190,320
Office Salaries Expense 225,000
Electricity Expense 58,880
Discount Allowed 45,240
Totals 5,340,968 5,340,968
Imagine you are a Graduate Accountant at Ollie and Ben Accounting Solutions and you have been asked to prepare any necessary balance day adjustments based on the information provided below for 30 June 2023.
Use the General Journal template provided on the next page and record the correctly formatted journal entries required and include a narration (explanation) for each entry.
Note: You may need to create additional accounts if they are not listed on the Unadjusted Trial Balance provided above.
On 30 June 2023, Gracie reviewed her outstanding Accounts Receivable balance. She has estimated that 2.5% of this balance is unlikely to be collected.
Gracie conducted a count of her stationery room on 30 June 2023. This count revealed that office supplies still on hand at that time were $5,750.
$8,550 of Staff Salaries are payable but have not yet been recorded as at 30 June 2023.
During the year, Gracie purchased a new display cabinet for the front office. The display cabinet cost $7,700 and was purchased on 1 April 2023. Gracie has estimated that the display cabinet will have a useful life of 6 years, after which she expects to be able to sell it for $500.
Gracies Biscuits last electricity bill for the business was for the month ending 31 May 2023, and this account was paid in early June. She has not yet received the June account but has estimated that the cost of her electricity usage up until 30 June 2023 was $3,500.
A custom-made biscuit for $1,300 was ordered and paid for by a customer on 28 June 2023. At the time of the sale, Gracie recorded this amount as Sales Revenue. However, due to baking machine repair issues, the biscuits will not be delivered until 5 July 2023.
On 1 April 2023, Gracie Beau took out a 2-year insurance policy for business inventory and other contents. This policy was paid for from the business bank account on the same day and was recorded as Prepaid Insurance.
Both the Furniture & Fittings and the Delivery Vans are expected to be used evenly over their useful lives. The expected total useful lives and residual values of both assets is as follows:
Estimated Useful life Estimated Residual
Furniture & Fittings 12 years $7,000
Delivery Vans 8 years $80,000
(Round all figures up to the nearest dollar amount.)
Provide your answers in the table below. You can create more lines if necessary.
Date Details Debit ($) Credit ($)
QUESTION 2: Financial Statement (40 marks)
In your role as a Graduate Accountant at Ollie and Ben Accounting Solutions, you have been supplied with the following adjusted Trial Balance for Cairn Border, prepared at the end of the financial year by the business owner, C Border.
REQUIRED:
Using the Trial Balance provided below, prepare the following for the period in question:
(Note: you are NOT required to create additional accounts to complete the financial statements.)
Fully classified Income Statement[20 marks]
Statement of Changes in Equity [4 marks]
Fully classified Balance Sheet (Narrative format)[16 marks]
Cairn Border
Adjusted Trial Balance
For the year ended 30 June 2023
Debit ($) Credit ($)
Cash at Bank 75,771 Accounts Receivable 74,578 Inventory (30 June 2023) 28,244 Allowance for Doubtful Debts 1,265
Prepaid Advertising 1,948 Fixtures & Fittings 31,625 Accumulated Depreciation - Fixtures & Fittings 12,650
Delivery Van 18,216 Accumulated Depreciation - Delivery Van 7,286
Advertising Payable 7,924
Accounts Payable 25,979
Interest Payable 759
Loan Payable 42,504
C Border - Capital (1 July 2022) 111,526
C Border - Drawings 23,403 Sales 695,990
Sales Returns & Allowances 10,917 Discount Received 3,922
Electricity Expense 2,024 Cost of Sales 525,424 Depreciation Expense - Fixtures & Fittings 6,325 Depreciation Expense - Delivery Van 3,643 Freight Inwards 3,567 Rent Expense 37,065 Discount Allowed 4,681 Salaries Expense - Shop 42,251 Advertising Expense 1,438 Interest Expense 595 Doubtful Debts Expense 1,265 Salaries Expense - Admin 16,825 Totals 909,805 909,805
Cairn has provided the following additional information to assist you with your statement preparation:
$4,956 of the Rent expense specifically relates to the administration office. The remainder of this expense relates to rent on the shop.
35% of the Electricity expense specifically relates to the administration office. The remainder relates to electricity used in running the shop.
The loan is to be repaid in 3 years.
Answer on the following page (insert additional pages as required)
QUESTION 3: Accounting Concepts (12 marks)
Imagine you are a graduate accountant working for Ollie and Ben Accounting Solutions. Amber Yonse, who owns and operates the Soy Candle Making business The Vibe, is one of your clients.
Over the last year Amber has expanded the business inventory lines to include candle-making books and diffusers under the brand name The Vibe. To date Amber has sold the books and diffusers only from The Vibe shop but has recently received interest from a number of online shops and one large retail outlet wanting to stock The Vibe range. Amber has decided to take up some of the online retail offers. As a result, she will need to stock more inventory to meet the demand.
Ms Yonse had a meeting with the Managing Partner at Ollie and Ben Accounting Solutions today and you were invited to attend the meeting. Ms Yonse is concerned about how she is going to account for her inventory so that she knows how much stock she has in the warehouse/storage room at any given time. She has noticed that on occasion it appears that stock has been taken from the shelves, however she doesnt recall selling the products. She has noted that at times she is very busy serving customers and making bookings for the candle-making courses, so she may have overlooked sales.
The Managing Partner discussed the issues that arose in the meeting with you after Ms Yonse had left. The Managing Partner explains to you that she is extremely busy with several other clients at the moment and has asked you to prepare a letter addressed to Ms Yonse that covers the points listed below.
When you have completed the letter, the Managing Partner will review your responses to the client.
REQUIRED:
Please write a letter in your own words to Ms Yonse explaining the following:
Given Ms Yonses requirements, identify what inventory systems are available, and which inventory system would best suit The Vibe inventory requirements.(3 marks)
In justifying your recommendation, explain at least three key benefits of using EACH inventory system. (6 marks)
The remaining 3 marks will be awarded for following the letter format requirements as shown below.
Date your letter.
Address your letter to the client, Amber Yonse, at The Vibe 60 Bridge St, Kensington SA 5068
Any formal business letter format is acceptable. Please note that a template has not been provided, you are expected to research the business letter format if you are unsure.
Set out your letter with subheadings to separate each part of your letter as you address the criteria required.
Consider an appropriate professional way to begin and end your letter (consider the context of the letter). A text message or email format is not appropriate.
The use of appropriate language and accounting terminology in your letter.
No specific word count is prescribed. However, given the nature of the questions, it would be expected that the entire letter (including the address and sign-off) should require no more than one A4 page.
(Letter to commence here)
QUESTION 4: Closing Entries (15 marks)
Nicole is the sole proprietor of Dog Washing and Walking Services. Nicole looks after her own business records but is unsure how to close off the accounts. Her friends suggested she contact Ollie and Ben Accounting Solutions for help.
During her appointment with you, Nicole handed over the following Trial Balance:
Dog Washing and Walking Services
Adjusted Trial Balance
For the year ended 30 June 2023
Debit ($) Credit ($)
Cash at Bank 207,888 Accounts Receivable 276,716 Dog Washing Supplies 7,160 Prepaid Insurance 4,800 Dog Washing Equipment 52,000 Accumulated Depreciation - Dog Washing Equipment 14,400
Accounts Payable 39,160
Salaries Payable 2,872
Interest Payable 5,264
Mortgage Payable 51,840
Unearned Revenue 5,376
Nicole - Capital 130,852
Nicole - Drawings 11,520 Sales 439,120
Salaries Expense 103,120 Insurance Expense 2,048 Interest Expense 9,600 Depreciation Expense 7,200 Dog Washing Supplies Expense 1,632 Rent Expense 5,200
Total 688,884 688,884
REQUIRED
The Managing Partner has requested that you assist Nicole by preparing the following:
Closing entries based on the Trial Balance provided above, and
A post-closing Trial Balance for the year ended 30 June 2023.
General Journal closing entries
Date Details Debit ($) Credit ($)
Post-closing Trial Balance
Dog Washing and Walking Services
Post-closing Trial Balance
For the year ended 30 June 2023
Debit ($) Credit ($)
Total
[DO NOT DELETE THIS PAGE]
WRITTEN COMMUNICATION SKILLS
The following aspects of students written communication skills development are also awarded a total of 15 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 persons ideas into the students own words.
Mark (maximum 5):
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 5):
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 subheadings 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 5):
TOTAL WRITTEN COMMUNICATION SKILLS MARK (maximum 15)
