Please aim to complete this assignment a few days prior to the due date to allow for any unforeseen circumstances such as illness, holidays, family issues, work commitments etc. You may submit the...

Please aim to complete this assignment a few days prior to the due date to allow for any unforeseen circumstances such as illness, holidays, family issues, work commitments etc. You may submit the assignment early if you have other commitments around the due date.

The due date and time are stated in the subject outline, on the subject website and above. All times listed are local (South Australia) times. Please ensure you factor in any time difference between Adelaide (South Australia) and your location when submitting your assignment, to avoid incurring any late submission penalties.

Please note the following important instructions relating to the assignment format and submission:

IMPORTANT - Failure to follow these instructions may result in your assignment not being marked, so please read them carefully.

1. You
must
complete your assignment using the assignment Word document provided.

2. There is no need to delete any part of this template.

3. Do not convert this document into any other format (.docx or .doc are the only permissible file formats than can be uploaded).

4. You can only submit this one file.

5. If you use Excel for calculations, ensure you only copy and paste as a table. Do not ‘embed’ spreadsheets in the assignment Word document.

6. Do not include any files as pictureswithin the assignment Word document.

7. You cannot scan hand written responses and submit. All assignments must be word processed.

8. Remember to fill out the assignment coversheet which is the third page of assignment Word document.

9. All assignments must be lodged via Learnonline page (link located on same page as assignment).

10. Assignments submitted via e-mail (or any other method) will
NOT
be accepted.

11. Make sure that you upload the correct file. If you discover (after the due date) that you have uploaded a draft version or the wrong file completely, you will not be allowed to submit a second file.

Note that this is an individual piece of assessment. Pay particular attention to the student declaration which forms part of the coversheet. You must type your name and the date in the appropriate field in this declaration.

Please also be aware that extensions to assignment due dates will only be approved in exceptional circumstances and for reasons that could not have been foreseen at the commencement of the study period. All applications for extensions must be submitted via the “Extensions” link provided on the subject website and must include an explanation of the circumstances under which the extension is being sought and relevant supporting documentation must be included with the original application. Please note that circumstances such as usual workload (university or employment), taking a holiday, being overseas or any situation within the control of the student do not qualify as grounds for an extension.

Please note that extension requests made within 7 days of the due date must also include a draft of the work you have completed to that point.

Best of luck with your assignment.

Accounting for Business Assignment – Learning Outcomes

The Assignment is a further opportunity to apply the knowledge and skills that you are developing. The Assignment also develops learning outcomes which are highly valued by the employers of accounting graduates: Knowledge, Judgement, Critical analysis and Problem solving skills, and Communication skills. Learning outcomes are the knowledge and skills that graduates are expected to know, understand and be able to do as a result of their learning. Go to the
Commerce home page
to find out more about these important learning outcomes.

Communication skills

Employers want graduates who are strong communicators. Communication skills rank among the most important selection criteria that employers use when recruiting graduates (Source: Graduate Careers Australia). These three aspects of your written communication skills development will be assessed in the assignment to a maximum of 9 marks:

· Paraphrasing,

· Being relevant and the art of selection, and

· An introduction to writing for a professional business audience.

Please refer to the resource
Developing written communication skills in Accounting for Business
on the subject learnonline site.
It has information about the three aspects of your written communication skills development and links to resources that will assist you develop your skills. As you use the resources in your assignment, remember that your studies is the perfect time to start developing these skills and appreciating their importance in your career.

QUESTION 1: General Journal (15 marks)

Sahra Ong is the sole proprietor of ‘Vacation’ a beach clothing business. Sahra designs and sews fashionable beachwear that has a high SPF rating. Sahra launched a bespoke beachwear range twelve months ago, and thanks to a cover story of her business published in the inflight magazine of a large airline company, demand for her bespoke beachwear has increased significantly.

Sahra is so busy with the growth of the business that she has been unable to attend to the bookkeeping, so she has recently hired Stone & Co Accounting Specialists Pty Ltd to take over the accounting function. You are the graduate accountant working at Stones & Co Accounting Specialists Pty Ltd and are now responsible for preparing the monthly journals for ‘Vacation’.

The following is a list of transactions that took place during the month of July 2020 that need to be recorded in the General Journal.

July 1 The business purchased a new sewing machine at a cost of $8,500. $2,500 was paid in cash and the remaining amount was paid using a loan from Wi Bank.

July 2 The monthly shop & workshop rent of $2,500 was paid.

July 5 A new range of SPF fabric was purchased from ‘World Fabrics Ltd’ on credit for $4,000.

July 11 Sahra sold on credit 27 long sleeve Rashies for $58 each to ‘The Tornadoes’, a local beach volleyball club. The terms of the sale require full payment is made within 30 days.

July 18 Sahra shut the shop at midday for an hour and paid $20 from the business bank account for lunch at ‘Waves’, a local beachside café.

July 27 The first payment of $200 was paid off the loan that ‘Vacation’ borrowed from Wi Bank on July 1.

July 28 ‘The Tornadoes’ beach volleyball club paid $522 off the amount they owe ‘Vacation’ for the purchase of the Rashies on July 11.

Required:

Record the General Journal entries in the proforma provided on the following page to record each of the above transactions where required. Remember to format the journals correctly and include a narration (explanation) for each journal entry.

General Journal

Question 2

(11 marks)

Although Sahra now pays Stone & Co Accounting Specialists Pty Ltd to manage the accounting function of the business, she still likes to prepare a few journals when she has time. The following general journal entries for the business ‘Vacation’ were prepared by Sahra for transactions occurring in October, however she needs your assistance in posting them to the General Ledger. Sahra has posted the opening balances (where required) into the general ledger and they are correct.

Required:

Post the General Journals recorded below to the General Ledger provided on the following page. Remember to foot each ledger to determine the ledger balance.

Hints to assist in completing the ledgers:

· Do not delete the opening balances given.

· The ledgers are formatted using tables, therefore it is best to navigate through the ledgers using the ‘tab’ function.

· When using tables, it is often easier to click on the “¶” function so you can see the formatting.

· It is quite acceptable to shorten account names i.e. Cash at Bank becomes CAB.

Post the journals from above to the General Ledger provided below. All ledgers below must be footed
(the closing balance must be made clear either by way of ‘c/d’ / ‘b/d’ notation, the wording ‘balance’ next to the amount, highlight the balance
or
with a circle around the balance).

Cash at Bank (CAB)

Sewing Table

Clothing Racks

Accounts Payable

Capital

Beachwear Sales

Interest Expense

Electricity Expense

(
assignment continues over the page)

Question 3

(16 marks)

You have been so helpful to Sahra that she has recommended you to a friend of hers, Jed Skee. Jed set up the business ‘Surfs Up’ in October 2019 which sells Surf Ski’s. Jed completed a basic bookkeeping course before he commenced his business and is able to prepare his business’s accounting information up to the point of the Trial Balance, but requires your assistance in preparing the financial statements.

Required:

Prepare an Income Statement, Statement of Changes in Equity and a Balance Sheet from the Trial Balance provided below.

QUESTION 4: Conceptual Framework (10 marks)

*(Element: Asset, Liability, Revenue, Expense, Equity)

**(a link explaining this method of referencing is available on the ACCT1008 Learnonline site under the “Subject Essentials” block)

REQUIRED:

Please write a letter
in your own words, using the Harvard** referencing system wherever appropriate addressing the queries raised by Sahra Ong (the client).

Sahra Ong has written to the Managing Partner of the accounting firm you work for as a graduate accountant because she is confused about a journal entry she prepared on the 31^st
October (see question 2). When Sahra discussed this transaction with her friend Jed Skee, he told her that she should debit the account “Accounts Payable” but she does not know why and is a bit embarrassed to ask her friend to explain.

· Explain with reference to the appropriate accounting definition the accounting element* that was
debited
on the 31^st
of October. Ensure you explain why the account was debited. (8 marks)

Up to an additional 2 marks will be awarded for following the formatting requirements below.

Formatting hints:

· Date your letter the 4^th
of November 2020

· Address your letter to Sahra Ong, ‘Vacation’, 4a Lane Court, Pt Shortz, SA 5111

· Any formal business letter format is acceptable (a template has not been provided - students are expected to research business letter formats themselves).

· Set out your letter with subheadings to separate each part of your letter as you address the criteria required.

· Consider an appropriate way to begin and end your letter (consider the context of the letter).

· The use of appropriate language, accounting terminology and reference in your letter to the specific information presented in the question.

· No specific word count is prescribed. However, given the nature of the question, it would be expected that the entire letter (including address and sign-off) should require no more than a full page.

The following aspects of students’ written communication skills development are also awarded a total of
6 marks.

PARAPHRASING

· Presenting ideas and information that the student read in their own words,

·
Not simply taking what someone else has written and changing a
few words. It is about translating another person’s ideas into
the student’s own words.

Mark (maximum 2):

BEING RELEVANT

Does what is written contribute to answering the question(s)

· Setting out to specifically answer the question(s) by using relevant information,

· Staying ‘on track’ with answers,

· Avoiding straying from the question and going off on irrelevant tangents.

Mark (maximum 2):

WRITING FOR A PROFESSIONAL BUSINESS AUDIENCE (including good presentation)

· The written work is clear and understandable,

· Where applicable, the written work is based on the facts and available evidence,

· Exaggeration and bold statements which are not supported by the facts and evidence are avoided.

Good presentation

· The written work contains
no
spelling and grammatical errors. Obvious evidence of editing displayed. (Where the work contains any spelling and grammatical errors, it cannot be awarded more than 5 marks),

· Any headings and sub-headings displayed properly, and are used consistently throughout the document,

· Font size and font style are used consistently throughout the document,

· If applicable, requested templates are used.