1 Assessment Task – Tutorial Questions Assignment 2 Unit Code: HC1010 Unit Name: Accounting for Business Assignment: Tutorial Questions Assignment 2 Due: 11:30pm, Friday 26th June, 2020 Weighting: 25%...

how much will cost me?


1 Assessment Task – Tutorial Questions Assignment 2 Unit Code: HC1010 Unit Name: Accounting for Business Assignment: Tutorial Questions Assignment 2 Due: 11:30pm, Friday 26th June, 2020 Weighting: 25% Total Assignment Marks: 50 Marks Purpose: This assignment is designed to assess your level of knowledge of the key topics covered in this unit Unit Learning Outcomes Assessed: • Obtain and contextualise business information for business accounting to explain and apply different concepts of costs to business decisions; • Apply, analyse, synthesise and evaluate information from multiple sources to make decisions about the financial performance of entities including assets, liabilities, owner’s equity, revenue and expenses; • Prepare, analyse, and interpret transaction data and financial statements for data- driven decision- making; • Evaluate the complex concepts of accounting such as roles and purposes of accounting and preparation of worksheets; and • Communicate accounting information in writing professionally. Description: Each week students were provided with three tutorial questions of varying degrees of difficulty. These tutorial questions are available in the Tutorial Folder for each week on Blackboard. The Interactive Tutorials are designed to assist students with the process, skills and knowledge to answer the provided tutorial questions. Your task is to answer a selection of tutorial questions for weeks 6 to 10 inclusive and submit these answers in a single document. 2 The questions to be answered are: Week 6 – Question 1 (10 marks) (Note this question is Q3 in the Pre-recorded Tutorial Questions) The cash flows shown below were extracted from the accounts of Jason Taylor, a music shop owner. Repayment of loan $390 000 Sale of property 390 000 Interest received 1 560 Payment to employees 78 000 Receipts from customers 273 000 Expenses paid 23 400 Computer equipment purchase 23 400 GST paid 780 Payments to suppliers 156 000 Income taxes paid 3 120 Beginning cash balance 7 800 A. Prepare a statement of cash flows using the direct method. (5 marks) B. Outline some cash flow warning signals. (5 marks) 3 Week 7 – Question 2 (10 marks) (Note this question is Q3 in the Pre-recorded Tutorial Questions) Selected information for two companies competing in the catering industry is presented in the table below: Account Name Lawson Dawson Current assets $110500 $167900 Non-current assets $250000 $299000 Current Liabilities $58600 $23500 Non-current Liabilities $89700 $145000 Equity $212200 $298400 Profit $75000 $53000 Required: A. Calculate the following ratios for Lawson and Dawson: i. Current ratio. (2 marks) ii. Return on Assets (ROA). (2 marks) iii. Return on Equity (ROE). (2 marks) B. From your calculations in part (A), explain which entity is in a more favourable position. (2 marks) C. Discuss two limitations of ratio analysis as a fundamental analysis tool. (2 marks) Week 8 – Question 3 (10 marks) (Note this question is Q3 in the Pre-recorded Tutorial Questions) King Sports owned by Tim Lane, sells sports equipment to schools and sporting clubs in Victoria. The following balances were reported in the Balance Sheet as at 30 June 2019. Account Name Balance ($) Cash at bank 39 400 Accounts receivable 2 800 Accounts payable 1 200 Capital – Tim Lane 41 000 (Note this question continues over the page) 4 Week 8 – Question 3 (10 marks) (Cont’d) Transactions for July 2019 were as follows: July 2 Received $2800 from accounts receivable 3 Paid $1000 of accounts payable 4 Paid rent for July $700 5 Sent invoice to customer $5600 7 Purchased office equipment for cash $2000 9 Recorded cash sales $800 10 Recorded credit sales $1500 14 Purchased office supplies for cash $330 23 Recorded cash sales $2000 31 Cash drawing by Tim Lane $800 Required: a. Prepare worksheet entries for the business transactions for the month ended 31 July 2019. (7 marks) b. Describe how an accounting worksheet assists in the preparation of the statement of profit or loss and the balance sheet. (3 marks) Week 9 – Question 4 (10 marks) (Note this question is Q3 in the Pre-recorded Tutorial Questions) King Sports owned by Tim Lane, sells sports equipment to schools and sporting clubs in Victoria. The following balances were reported in the Balance Sheet as at 30 June 2019; Account Name Balance ($) Cash at bank 39 400 Accounts receivable 2 800 Accounts payable 1 200 Capital – Tim Lane 41 000 (Note this question continues over the page) 5 Week 9 – Question 4 (10 marks) (Cont’d) (Note this question is Q3 in the Pre-recorded Tutorial Questions) July transactions for 2019 were as follows: July 2 Received $2800 from accounts receivable 3 Paid $1000 of accounts payable 4 Paid rent for July $700 5 Sent invoice to customer $5600 7 Purchased office equipment for cash $2000 9 Recorded cash sales $800 10 Recorded credit sales $1500 14 Purchased office supplies for cash $330 23 Recorded cash sales $2000 31 Cash drawing by Tim Lane $800 Required: a. Record Journal entries for the business transactions for the month ended 31 July 2019.(4 marks) b. Record the transactions in the following ledger accounts for King Sports for the month ended 31 July 2019. (i) Cash account. (1/2 mark) (ii) Accounts receivable. (1/2 mark) (iii) Office equipment. (1/2 mark) (iv) Rent expense. (1/2 mark) (v) Office supplies expense. (1/2 mark) (vi) Drawings account. (1/2 mark) (vii) Tim Lane’s capital account. (1/2 mark) (viii) Sales revenue account. (1/2 mark) c. Prepare a trial balance at 31 July 2019. (2 marks) 6 Week 10 – Question 5 (10 marks) (Note this question is Q3 in the Pre-recorded Tutorial Questions) Mel Gibbeson has recently graduated from a business school and has joined the family business as an accountant. At the first management meeting with production, marketing and sales, a great deal of time was spent discussing the unit cost of products. Required: What kinds of decisions can managers make using the unit cost information? Submission Directions The assignment has to be submitted via Blackboard. Each student will be permitted one submission to Blackboard only. Each student needs to ensure that the document submitted is the correct one. Academic Integrity Academic honesty is highly valued at Holmes Institute. Students must always submit work that represents their original words or ideas. If any words or ideas used in a class posting or assignment submission do not represent the student’s original words or ideas, the student must cite all relevant sources and make clear the extent to which such sources were used. Written assignments that include material similar to course reading materials or other sources should include a citation including source, author, and page number. In addition, written assignments that are similar or identical to those of another student in the class is also a violation of the Holmes Institute’s Academic Conduct and Integrity Policy. The consequence for a violation of this policy can incur a range of penalties varying from a 50% penalty through to suspension of enrolment. The penalty would be dependent on the extent of academic misconduct and the student’s history of academic misconduct issues. All assessments will be automatically submitted to Safe-Assign to assess their originality. Further Information For further information and additional learning resources, students should refer to their Discussion Board for the unit.