2108AFE Financial Accounting Assessable Homework Workshop Questions Topic 3 – Inventory and Retail Operations Question 1 ABC Ltd has the following information related to its inventory for December:...

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2108AFE Financial Accounting Assessable Homework Workshop Questions Topic 3 – Inventory and Retail Operations Question 1 ABC Ltd has the following information related to its inventory for December: Date Item Quantity Unit Cost 1st December Beginning Inventory 15 210 6th December Sale 12 9th December Purchase 6 250 16th December Purchase 2 240 26th December Sale 10 30th December Purchase 14 255 ABC Ltd uses a perpetual inventory system with FIFO costing. Required: (a) Complete the following inventory record below. Inventory Record. Date Purchases Cost of Sales Inventory on Hand Quantity Unit Cost Total Cost Quantity Unit Cost Total Cost Quantity Unit Cost Total Cost TOTAL Question 2 Explain the “Lower of Cost and Net-Realisable-Value (LCM) Rule in 5 lines or less. ________________________________________________________________________________ ________________________________________________________________________________ ________________________________________________________________________________ ________________________________________________________________________________ ________________________________________________________________________________ Question 3 What would the general journal entries be to record the 26th December sale if the selling price is $341 per unit which includes 10% GST. ________________________________________________________________________________ ________________________________________________________________________________ ________________________________________________________________________________ ________________________________________________________________________________ ________________________________________________________________________________ Question 4 – Reflection (Minimum 100 words, Maximum 150 words) What are some of the ethical issues associated with retail inventory? In your answer, explain the implications of these ethical issues on the financial statements? ________________________________________________________________________________ ________________________________________________________________________________ ________________________________________________________________________________ ________________________________________________________________________________ ________________________________________________________________________________ ________________________________________________________________________________ ________________________________________________________________________________ ________________________________________________________________________________ ________________________________________________________________________________ ________________________________________________________________________________ ________________________________________________________________________________ ________________________________________________________________________________ 2108AFE Financial Accounting Assessable Workshop Question(s) Topic 4 – Accounting Information Systems Question 1 Johnson Consulting *NOT REGISTERED FOR GST Dec 2 Received $20,000 cash investment by Frank Johnson. 2 Paid monthly office rent, $550. 3 Paid cash for a MacBook computer, $1,900. This equipment is expected to remain in service for 5 years. 4 Purchased office furniture on credit, $4,200. The furniture should last for five years. 5 Purchased supplies on credit, $900. 9 Performed consulting service for a client on credit, $1,500. 12 Paid electricity and gas expense, $250. 18 Performed service for a client and received cash of $1,100. Requirements: 1. Record the transactions in special journals. 2. Balance the special journals Requirement 1 Sales journal Date Invoice no. Customer account debited Post. ref. Accounts receivable DR/ Service revenue CR Cash payments journal Date Check no. Account debited Post. ref. Debits Credits Other accounts Accounts payable Inventory Cash $ $ . Cash receipts journal Date Debits Credits Cost of sales DR/ Inventory CR Cash Sales discounts Service revenue Accounts receivable Other accounts Account title Post. ref. Amount Total debits = $ ____ Total credits = $ _______ Purchases journal Date Credits Debits Supplier account credited Terms Post. ref. Accounts payable Inventory Supplies Other accounts Account title Post. ref. Amount Total debits = $ ______ Total credits = $ ______ Question 2 ***INCLUDES GST Casey Ltd’s accounting system uses special journals and subsidiary ledgers. The following transactions occurred during October 2019 (GST is ignored). All sales are n/30. Required Assuming that the company is registered for the GST, enter the appropriate transactions into suitably ruled purchases and sales journals, and explain how each would be posted to accounts in the ledgers. Purchases Journal Date Date of Inv. Account Terms Post Ref. Purchases GST Receivable Accounts Payable Sales Journal Date Inv. No. Account Terms Post Ref. Sales GST Payable Accounts Receivable Postings explanation: Purchases Journal: Sales Journal: 3