Introduction to Financial Accounting ACC1100
- Subject Code :
ACC1100
ACC/ACF1100
IntroductiontoFinancialAccounting
Inthisassessment,youmustNOTusegenerativeartificialintelligence(AI)togenerateanymaterials or content in relation to the assessment task.
DueDate:Sunday13thApril2025 at11:55pm (week6)
Value:16%
Purpose:Todemonstrateyourunderstandingoftheeffectoftransactionsandevents on the financial statements
Submission:uploadedviaMoodle
Components:Apractical(recordingkeeping)component,andawrittenresponse.Youmust use the word templates provided on Moodle.
Requirements:Pleasereadthedetailscarefully.Therearetwoseparatetasksinvolved.
Backgroundanddetails:
Darcy Smith has recently commenced trading as DS Gardening, a sole proprietorship. He had worked in the gardening and landscaping trade for several years, but wanted to start his own business seeking better work-life balance. Details about his activities relating to gardening and lawn mowing for the month of January 2025 are provided (ignore GST):
|
Date |
Details |
|
1Jan |
Darcycontributed$1,300cash,a$900mobilephone,gardeningequipmentwitha current market value of $1,800, and a vehicle valued at $8,600. |
|
2Jan |
Darcypaid$440foradvertisingthatwouldcoverthetwomonthsofJanuaryand February. |
|
4Jan |
Darcycompletedlawnmowingservicesforclientsandreceived$160cash. He disposed of the garden waste at the local transfer station for $25 cash. |
|
5Jan |
Darcypurchasedaquantityoffuelandoilforhisgardeningequipmentfor$90cash.It wasstoredinhisshedathomeandusedasrequired. |
|
9Jan |
Darcycompletedgardeningworkforaregularclient.Nobodywashomeatthetimeso he left an invoice for $170 in the letterbox. |
|
10Jan |
Asecond-handtrailerwaspurchasedbyDarcyfor$2,660oncredittermsn/60.This wouldenablehimtoworkmoreefficiently,makingfewertripstodisposeofgarden waste. |
|
11Jan |
Darcyperformedlawnmowingfor$110,andgardeningfor$155,receivingboth amounts in cash. He also disposed of garden waste for $85 cash. |
|
12Jan |
Darcywithdrew$100fromthebusinessbankaccountforpersonaluse. |
|
15Jan |
Darcymowedseverallawnsthroughouttheday,collectingatotalof$410incash. |
|
18Jan |
Darcypurchasedfuelandoilincashfor$140. |
|
19Jan |
$170cashwasreceivedbybanktransferfromthegardeningclientwhoseinvoicewas dated 9 Jan. |
|
20Jan |
Darcypaid$800tocreditorsasaninstalmentonthetrailerpurchased. |
|
22Jan |
Darcycompletedanextensivegardeningprojectfor$520cash. Garden waste disposal fees were paid for $120. |
|
25Jan |
Darcyperformedlawnmowingandreceived$205cash,andgardeningservicesfor$125 oncredit(aninvoicewasleftfortheclient). |
|
26Jan |
AregularclientpaidDarcy$280tomowtheirlawnforthenextfourweeksasthey would be away on holidays. |
|
28Jan |
Darcywithdrew$250fromthebusinessbankaccountforpersonaluse. |
|
31Jan |
Informationregardingend-of-monthadjustments: oDarcy mowed the regular clients lawn (the client who had already paid). He estimatedthathewouldmowthelawnthreemoretimeswhiletheyareaway. oDarcyestimatesthathehas$30worthoffuelandoilonhand. o75%oftheadvertisinghasbeenconsumed. Depreciation details (all straight-line method): oPhone(Life=oneyear,$0residual) oGardeningequipment(Life=3years,$0residual) oVehicle(Life=5years,$2,600residual) oTrailer(Life=3years,residual$500) |
Required:
Part A (Practicalcomponent)
Recordtheinformationprovidedaboveinthetemplatesprovidedattheendofthisdocumentfor DS Gardening by completing the following steps:
- Create a chart of accounts
- Enter the data in the general journal
- Post the entries to ledger accounts
- Total the ledgers and prepare a trial balance
- Transfer the data to prepare the four financial statements
PartB(Writtencomponent)
Answerbothparts(placeyouranswersinthesameworddocumentasPart A):
- Analyse the financial statements youIf you were Darcy, would you be happy with the performance, position and cash flow of the business at the end of January? Explain and justify with any assumptions you make. Maximum 200 words.
- Reflect on the process you undertook in Part A to complete thisIdentify which part of the recording process you found to be the most challenging and explainwhy. Maximum 100 words.
Markingcriteria:
Submissionswillbemarkedbasedontheaccuracyoftherecordingprocess,presentation and formatting of accounting records, and quality of theoretical responses.
PleaseusethesetemplatestocompleteAssignment1.
You must edit them(add or remove lines, format the text with underlineorbold,addfulltitlesetctomakethemsuitableforyour needs). Presentation is important.
CHARTOFACCOUNTS
|
No. |
AccountName |
GENERALJOURNAL
|
Date |
Details |
No. |
Debit |
Credit |
LEDGERS
TRIALBALANCE
|
No. |
AccountName |
Debit |
Credit |
INCOMESTATEMENT
|
$ |
$ |
|
|
Income |
||
|
Expenses |
||
|
Profit(loss) |
STATEMENTOFCHANGESINEQUITY
|
$ |
|
BALANCESHEET
|
CurrentAssets |
$ |
CurrentLiabilities |
$ |
||
|
Non-CurrentAssets |
Non-CurrentLiabilities |
||||
|
OwnersEquity |
|||||
|
TotalAssets |
TotalLiabilitiesand Owners Equity |
STATEMENTOFCASHFLOWS
|
CashflowsfromOperatingActivities |
$ |
$ |
|
CashflowsfromInvestingActivities |
||
|
CashflowsfromFinancingActivities |
||
|
NetCashFlow |
||
