Assessment Task – Tutorial Questions Assignment Unit Code: HA1020Unit Name: Accounting Principles and PracticesAssignment: Tutorial Questions Assignment (Individual)Due: Week 13 - Friday, 16th October 2020 (11:30pm)Weighting: 50%Purpose:This assignment is designed to assess your level of knowledge of the key topics covered in this unit Unit Learning Outcomes Assessed:• Understand the logic and assumptions of accounting procedures;• Record business transactions in the journals and ledgers that make up a business accountingsystem;• Prepare financial statements; and• Analyse and interpret financial statements.Description:Each week students were provided with three tutorial questions of varying degrees of difficulty. The 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 from weeks 1 to 11 inclusive and submit these answers in a single document.1
The questions to be answered are:Question 1 (7 marks)(Note this question is from the Week 5 Tutorial)Sandox Retail has the following unadjusted trial balance as at 30 June 2020 in the table: AccountsCashAccounts ReceivableSuppliesPrepaid InsuranceInsurance ExpenseEquipmentAccumulated DepreciationOther AssetsWages PayableAccounts PayableIncome Tax PayableShare Capital (3000 shares outstanding all year) Retained ProfitSales RevenueCOGSWages ExpenseSupplies ExpenseIncome Tax ExpenseTotalDebit ($)8,5247,000 15,000 300 600 27,0005,100Credit ($) 12,0001,500 7,500 3,15016,000 10,300 95,000 32,900 18,000 25,6805,346 145,450145,450 2
Question 1 (Cont’d) Required:a) Prepare an Income Statement for Sandox Retail for the financial year 2019-2020. (2.5 marks)b) Prepare a Balance Sheet as of 30 June 2020. (2.5 marks)c) Prepare the closing journals for Sandox Retail. (2 marks)Question 2 (7 marks)(Note this question is from the Week 6 Tutorial)Beacon Limited had the following trial balance as at 1 January 2019, as shown in the table below: AccountCashAccounts receivable InventoryPrepaid insurancePrepaid rentEquipmentAllowance for doubtful debts Accumulated depreciation Accounts payableRevenue received in advance Income tax payableLoanShare capitalRetained profitsDebit $250 000 600 000 730 000 60 000 50 0001 500 000Credit $20 000 500 000 700 000 120 000 530 000 600 000 400 000 320 000 3 190 000 3 190 000 You are given the following additional information for the year ended 31 December 2019:a) Bad debts of $14,380 were written off.b) It was decided that allowance for doubtful debts should be 5 per cent of accounts receivable.Required:1) Prepare journal entries for these transactions. (5 marks)2) State the balance of the following accounts via T-ledger for the year ended 31 December 2019:a) Accounts receivable (1 mark)b) Allowance for doubtful debts (1 mark)3
Question 3 (11 marks) (Note this question is from the Week 7 Tutorial)The following information has been extracted from the records of Kakadu Ltd, which sells special camping tents. The company uses the perpetual inventory system to record stock. Its monthly reporting date is 31 May. Kakadu Ltd uses the FIFO Method. Date Transaction1/05 Beginning balanceQuantity $ Unit cost6 720 4 600 8 ? 6 650a) Ignoring GST and narrations, create and complete the inventory stock record shown above for transactions during the month of May.b) Calculate the cost of inventory on hand as at 31 May and the cost of sales as at 31 May. 6/05 Purchases (850/unit)16/05 Sold @1700/unit17/05 Purchases29/05 Sold @ 1500/unit 2 30/05 Sales Return from 29/03 Sales 1Required: ? ? Question 4(Note this question is from the Week 8 Tutorial)Transactions and balances for Diana Wonder are provided below:• 31 Jul 2020 Bank Statement balance $ 78,495• 31 Jul 2020 balance per Diana’s records $ 77,370• Diana received a cash payment that she has not deposited $ 380• Diana issued a cheque payable to Michael Hill Enterprises that has not been presented tothe bank $ 1,499• Bank charges for the month of July were $10• Interest on bank balance credited to Diana’s account $ 16Required:Perform a bank reconciliation.a) Reconcile Diana Wonder’s month end cash balance as of 31 Jul 2020. (5 marks)b) Based on your analysis, propose the adjusting entries (if any). (2 marks)(7 marks)4
Question 5 (7 marks) (Note this question is from the Week 9 Tutorial)Greyhound Ltd purchased a new bus for $280,000. The company expects the bus to be used for trips between Sydney and Melbourne for 8 years, or 400,000 miles, with an estimated residual value of $40,000 at the end of that time. During the third (3rd) year, the bus was driven 60,000 miles.Required:Calculate the depreciation expense for the 3rd year using each of the depreciation methods: a), b)and c) stated below. (Show ALL of your workings and calculations)a) Straight-line (2 marks)b) Diminishing balance at 20% p.a. (2.5 marks)c) Units-of-activity (2.5 marks)Question 6(Note this question is based on the Week 11 and Week 12 Tutorials)(11 marks)Safeway Inc. had the following comparative current assets and current liabilities, as shown below:31 Dec 2019CashMarketable securitiesAccounts receivableInventory 120,00031 Dec 2018 Current AssetsPrepaid expensesTotal Current AssetsCurrent LiabilitiesAccounts payable Salaries payable Income tax payableTotal Current liabilities Additional Information35,000$292,000$145,000 40,000 20,000 $205,000$230,000$130,000 30,000 15,000 $175,000$ 65,000 30,000 42,000$25,000 15,000 80,000 90,000 20,000 During 2019 net credit sales were $680,000 and the associated cost of goods sold was $365,000. Net cash provided by operating activities for 2019 was $142,000.5
Question 6 (Cont’d) (11 marks) Required:Based on the comparative current assets and current liabilities of Safeway Inc., as shown above, compute the following ratios:1. Current ratio for both 2018 and 2019. (2 marks)2. Quick ratio for both 2018 and 2019. (3 marks)3. Current cash debt coverage ratio for 2019. (2 marks)4. Receivables turnover for 2019. (2 marks)5. Inventory turnover for 2019. (2 marks)Submission DirectionsThe assignment will be submitted via Blackboard. Each student will be permitted only ONE submissionto Blackboard. You need to ensure that the document submitted is the correct one.Academic IntegrityHolmes Institute is committed to ensuring and upholding Academic Integrity, as Academic Integrity is integral to maintaining academic quality and the reputation of Holmes’ graduates. Accordingly, all assessment tasks need to comply with academic integrity guidelines. Table 1 identifies the six categories of Academic Integrity breaches. If you have any questions about Academic Integrity issues related to your assessment tasks, please consult your lecturer or tutor for relevant referencing guidelines and support resources. Many of these resources can also be found through the Study Skills link on Blackboard.Academic Integrity breaches are a serious offence punishable by penalties that may range from deduction of marks, failure of the assessment task or unit involved, suspension of course enrolment, or cancellation of course enrolment.6
Table 1: Six Categories of Academic Integrity Breaches PlagiarismReproducing the work of someone else without attribution. When a student submits their own work on multiple occasions this is known as self-plagiarism. CollusionWorking with one or more other individuals to complete an assignment, in a way that is not authorised.Falsely presenting oneself, or engaging someone else to present as oneself, in an in-person examination.Manipulating or inventing data with the intent of supporting false conclusions, including manipulating images. CopyingReproducing and submitting the work of another student, with or without their knowledge. If a student fails to take reasonable precautions to prevent their own original work from being copied, this may also be considered an offence. Impersonation Contract cheatingContracting a third party to complete an assessment task, generally in exchange for money or other manner of payment. Data fabrication and falsification Source: INQAAHE, 2020If any words or ideas used the assignment submission do not represent your original words or ideas, you must cite all relevant sources and make clear the extent to which such sources were used.In addition, written assignments that are similar or identical to those of another student 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 suspension of enrolment. The penalty would be dependent on the extent of academic misconduct and your 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 please refer to your Discussion Board for the unit.7