Accounting assignment
Assignment 1 Value: 20% Pete's Handyman Services Trial Balance as at 30th June 2019 Debit Credit $ $ Bank 3,600 Accounts receivable 800 Prepaid expenses 300 Supplies 400 Equipment 1,800 Less: Accumulated depreciation 800 Motor vehicle 12,000 Less: Accumulated depreciation 3,600 Accounts payable 300 Unearned revenue 600 Pete Smith, capital 13,600 Pete Smith, drawings Service revenue Advertising Depreciation Insurance Interest expense Motor vehicle expenses Repairs Supplies expense Telephone Total 18,900 18,900 Date Detail 1-Jul Purchased a tool trailer for $4,200. Pete took out a business loan to pay for the trailer (repayable within 12 months). Interest is charged at 8% p.a. to the loan account, and monthly repayments are $400, due on the last day of each month. 2-Jul Paid $300 owing to a supplier in relation to June 2019 expenses, from the bank account. 4-Jul Provided handyman services to Mrs Jones on credit, for $700. 7-Jul Received $500 in the bank from a customer in relation to services provided in June 2019. 8-Jul Provided handyman services to Mrs Smart for $600. Mrs Smart had paid for these services in June 2019. 9-Jul Purchased supplies from Bunnings for $350 (paid from the bank account). 10-Jul Provided handyman services to Mr Budd on credit, for $1,300. 12-Jul Withdrew $2,500 from the bank account for personal expenses. 14-Jul Provided handyman services to Mrs Hunt for $1,250. Mrs Hunt paid by electronic funds transfer. 15-Jul Purchased fuel for the business vehicle, for $80 (paid from the bank account). 16-Jul Received $1,300 in the bank from Mr Budd in relation to services provided on 10 July. 22-Jul Provided handyman services to Mr Diaz on credit, for $500. 23-Jul Received $2,600 from a customer, Mr Hatter, for services to be provided in August. 23-Jul Entered into a contract with Hit Radio, for radio advertising for August - October, for $1,200. $1,200 was paid from the bank account. 23-Jul Received $700 in the bank from Mrs Jones in relation to services provided on 4 July. 26-Jul Withdrew $2,500 from the bank account for personal expenses. 26-Jul Provided handyman services to Mr Catt for $280. Mr Catt paid by electronic funds transfer. 30-Jul Paid $320 for business insurance, for the month of August. 31-Jul Interest is charged on the business loan, and the $400 loan repayment for July is paid from the bank account. 31-Jul Received an invoice from Mower Repairs Ltd, for repairs to equipment, for $320. The due date for payment 14 August. 31-Jul Received an invoice from Telstra, for July telephone, for $150. The due date for payment 20 August. Due Date: 16-Aug-2019 Return Date: 06-Sep-2019 Submission method options: Alternative submission method Task back to top Assessment conditions: This is an individual assessment task (not a group assessment task). Complete the 3 questions given below. A total of 40 marks are allocated to the questions below, which will then be converted to a mark out of 20%. All workings, where appropriate, must be shown to substantiate your answers. Question 1 [20 marks] Preparation of accounting records – using spreadsheets The trial balance for Pete’s Handyman Services (a small business operated by Pete Smith, as a sole trader) as at 30 June 2019 is as follows (after closing entries prepared on 30 June 2019): During July 2019, the following transactions took place: Additional information as at 31 July 2019: · Depreciation to be recognised for July is $80 for the equipment, and $100 for the vehicle. · There were supplies on hand on 31 July of $260. · In June 2019, $300 was paid for insurance relating to the month of July 2019. · Ignore any GST. Required: i) Prepare journal entries for July 2019 transactions listed above (including any adjusting entries). Include dates, references and narrations. ii) Prepare T-accounts in an Excel spreadsheet, and enter the opening balances from the Trial Balance from 30 Jun 2019. Post all of the above journal entries to the T-accounts. Include dates and references for each entry. Total all of the T-accounts to determine their balances at the end of the July 2019. You are not required to prepare closing entries. iii) Prepare the ‘Adjusted Trial Balance’ in an Excel spreadsheet as at 31st July 2019. Use formulas to generate all of the figures in the ‘Adjusted Trial Balance’ from the balances in the T-Accounts. iv) Prepare the income statement, balance sheet, and statement of changes in equity in Excel. Use formulas to generate all of the figures in the financial statement reports from the ‘Adjusted Trial Balance’. When preparing the balance sheet, classify assets and liabilities as current or non-current. v) Calculate and evaluate the business’s current ratio and debt ratio. Please also refer to the 'Requirements' section below for additional submission and spreadsheet requirements. Question 2 [10 marks] History of accounting - essay Accounting is considered to be one of the world’s oldest professions. Prepare an essay discussing the origins of accounting, and how accounting practices have changed over time. (Word count: Approximately 1,400 - 1,800 words in total). Question 3 [10 marks] Ethics in accounting Chartered Accountants Australia and New Zealand (CAANZ) and Certified Practising Accountants Australia (CPAA) have a joint code of ethics for professional accountants, issued through the Accounting Professional and Ethical Standards Board (APESB). Required: i) List and explain each of the ethical principles in the code of ethics. In your discussion, provide an illustrative example of how each of these principles would be applied by accountants in a particular scenario. ii) When faced with an ethical dilemma, what should accountants do? (You will need to undertake some research to answer this). Provide an example of an ethical dilemma that an accountant might be faced with, and explain what steps should be taken to resolve it. Rationale back to top This assessment task will assess the following learning outcome/s: · be able to apply conceptual and technical aspects of accounting and prepare relevant business financial statements. · be able to discuss the historical development of accounting. · be able to appraise the use of information technology including spreadsheet software in accounting problem solving, and evaluate the Internet as a professional resource. · be able to demonstrate relevant business communication skills including report writing. · be able to contextualise and evaluate accounting information for decision making purposes. · be able to explain the importance of ethics in accounting. In today’s business environment we need verbal skills, writing skills, numeracy skills AND digital literacy skills. All of these skills are assessed throughout this subject. The early questions in this assignment are designed to assess your digital literacy in a business/accounting environment. This assignment is designed to give you an opportunity to demonstrate knowledge and skills in aspects of accounting and information systems including technical issues as well as concepts such as the accounting equations, cash and accrual accounting, current and non-current assets and liabilities, trial balance, worksheets, income statement, statement of changes in equity, balance sheets and the application of spreadsheet software to the presentation and solution of accounting problems. Marking criteria and standards back to top The marking guide for this assessment task is provided below. Criteria High Distinction Distinction Credit Pass Question 1: Apply computer software and basic accounting ideas, concepts and techniques to prepare accounting information that is useful for decision making. Analyse the nature, and measurement of assets, liabilities, equity, income and expenses. Evaluate accounting information for decision making purposes. Applies the definitions for assets, liabilities, income, expense and equity items, and other basic accounting concepts and techniques to a range of practical situations without flaw. Demonstrates the ability to use computer software and spreadsheets to prepare useful accounting information for a variety of users, without flaw. All required Excel spreadsheet features and functions have been applied. Discussions and explanations presented are exemplary and clear, well justified, and show an in-depth understanding of the topic. Applies the definitions for assets, liabilities, income, expense and equity items, and other basic accounting concepts and techniques to a range of practical situations with minor flaw. Demonstrates the ability to use computer software and spreadsheets to prepare useful accounting information for a variety of users, with minor flaw. Almost all of the required Excel spreadsheet features and functions have been applied. Discussions and explanations presented are clear and succinct, and show a thorough understanding of the topic. Applies the definitions for assets, liabilities, income, expense and equity items, and other basic accounting concepts and techniques to a range of practical situations with a limited number of minor errors. Demonstrates the ability to use computer software and spreadsheets to prepare useful accounting information for a variety of users, with a limited number of minor flaws. Most of the required Excel spreadsheet features and functions have been applied. Discussions and explanations presented are clear and adequate, and show a good understanding of the topic. Applies the definitions for assets, liabilities, income, expense and equity items, and other basic accounting concepts and techniques to a range of practical situations with a limited number of errors. Demonstrates the ability to use computer software and spreadsheets to prepare useful accounting information for a variety of users, with a limited number of errors. Most of the required Excel spreadsheet features and functions have been applied. Discussions and explanations presented are basic, and show a satisfactory understanding of the topic. Question 2: Discuss the historical development of accounting, and demonstrate relevant business communication skills. Discussions and explanations presented are exemplary and clear, well justified, and show an in-depth understanding of the topic. Answers are presented in an appropriate format and are structured exceptionally well. The writing style is succinct, cohesive, easy to read and it is grammatically correct with accurate use of syntax, spelling and punctuation. In-text citations have been included where necessary. APA referencing system has been followed, without flaw. Discussions and explanations presented are clear and succinct, and show a thorough understanding of the topic. Answers are presented in an appropriate format and are structured very well. The writing style is clear and succinct, easy to read and it is grammatically correct with accurate use of syntax, spelling and punctuation. In-text citations have been included where necessary in almost all instances. APA referencing system has been followed, with minor flaw. Discussions and explanations presented are clear and adequate, and show a good understanding of the topic. Answers are presented in an appropriate format and are structured well. The writing style is appropriate and easy to read most of the time, with