Only 5 questions
RMIT Classification: Trusted STUDENT – PRODUCT ASSESSMENT TASK Task Number 2 of 2 Task Name Portfolio – Financial Statements National unit/s code FNSACC414 National unit/s title Prepare Financial Statements for Non-reporting entities National qualification code FNS40217 National qualification title Certificate IV in Accounting and Bookkeeping RMIT Program code C4398 RMIT Course code ACCT5423C Section A – Assessment Information Assessment duration and/or due date Due Week 15 Task instructions Type of Product (tick which applies) ☐ Project ☐ Report Portfolio ☐ Case study Summary and Purpose of Assessment There are a total of two (2) assessment tasks you need to complete for this unit. This is the second assessment (Assessment Task 2). This assessment allows you to demonstrate your skills in preparing financial statements for non-reporting entities. You are required to work on preparing the answers to all the questions and submit in a Word format on Canvas by the due date. Assessment Instructions What You need to complete a series of tasks using the information provided. The following six questions (Q1, 2, 3, 4, 5A & 5B) are based on common predictable accounting problems using different sources of information and involve a range of scenarios. To answer the questions, you will need to read the information carefully, analyse any data provided and develop solutions by firstly coding and then classifying the data accordingly. When completing these questions, you will need to pay attention to the reliability of the data and ensure accuracy throughout their workings. You are to perform a check on your final calculations, including reviewing against all internal and external financial data sources you are given. You must ensure they follow all necessary protocols, policies and procedures and accounting standards. Where You will be provided some class time to work on this assessment, however, it is expected that the majority of this assessment will be completed outside of class. How This assessment is to be completed individually. You will be assessed against the criteria listed in the marking guide in Section B of this task. To achieve a satisfactory result, you need to address all criteria satisfactorily. You need to achieve Satisfactory (S) results for both Assessment Task 1 and Assessment Task 2 to be deemed Competent (CA) for this unit. Conditions for assessment · This is an individual assessment task. You must not copy the work of others. · This written assessment should follow RMIT guidelines regarding referencing and plagiarism. · You must submit your file in Canvas by the due date. Your assessor will assess the documentation you provide, and you will receive feedback within 2 weeks of your submission. · You are required to name their file as < your="" student="" number="" _your="" name_="" fnsacct414_="" portfolio="" –="" financial="" statements="">. For example, 23456789JohnSmith_TLIR4003_ Portfolio – Financial Statements.docx · You will be assessed as Satisfactory or Not Satisfactory. · If you do not answer all questions satisfactorily, you will be given another attempt to respond to the questions that were incorrect. If you do not answer the questions correctly on the second attempt, your RMIT teacher will contact you to discuss your assessment. · You need to make arrangements with your assessor at least one week prior to the assessment due date if you require special allowance or allowable adjustment to this task · If you require extension of time (up to seven days) you must apply in advance and prior to the assessment due date if you feel that you require special allowance or allowable adjustment to this task. How to apply instructions are available on https://www.rmit.edu.au/students/student-essentials/assessment-and-exams/assessment/extensions-of-time-for-submission-of-assessable-work webpage · For the other circumstances and types of assessments students need to apply for Special Consideration. More information is available on https://www.rmit.edu.au/students/student-essentials/assessment-and-exams/assessment/special-consideration · Other assessment related information for students https://www.rmit.edu.au/students/student-essentials/assessment-and-results · Assessment appeals information https://www.rmit.edu.au/students/student-essentials/assessment-and-results/special-consideration/assessment-and-outcomes Instructions on submitting your assessment You must submit your file in Canvas by the due date. Your assessor will assess the documentation you provide, and you will receive feedback within 2 weeks of your submission. You are required to name their file as < your="" student="" number="" _your="" name_="" fnsacct414_="" portfolio="" –="" financial="" statements="">. For example, 23456789JohnSmith_TLIR4003_ Portfolio – Financial Statements.docx Equipment/resources students must supply: Equipment/resources to be provided by RMIT or the workplace: · Access to a laptop or mobile device · Internet access if not on campus · Pens, pencils, erasers, non-programmable calculator · Access to Canvas and internet sites required for study in this course · Appropriate software as required Section B – Student Answer Sheet Student Name Student ID Question 1 You are working as one of the employees of Complete Business Services and you are contacted by the business named Platinum Heights seeking Accounting consultation. They have provided you the following data from their accounting system for the year ended 30 June 2019: Sales (all credit) $224,000 Cost of Goods Sold 152,000 Operating expenses 32,000 Capital - 01/07/2018 160,000 - 30/06/2019 190,000 Inventory - 01/07/2018 42,000 - 30/06/2019 34,000 Current Assets 50,000 Non Current Assets 220,000 Current Liabilities (including Bank Overdraft $12000) 40,000 Non Current Liabilities 40,000 Complete the following: You are asked to Calculate for Platinum Heights the following ratios for the year ended 30 June 2019: (a) Gross Profit Rate (b) Net Profit Rate (c) Current Ratio (d) Quick Ratio (e) Briefly analyse the significance of liquidity of the business with the help of the ratios calculated above Question 2 You are working as one of the employees of Complete Business Services and you are contacted by the partnership business for Alice, Alex and Chris seeking accounting consultation. They have provided you the following trial balance from their accounting system for the year ended 30 June 2019: Extract of Accounting Policies and Procedures: Partnership Business of Alice, Alex and Chris · There are 3 partners in the business and operating under partnership structures. · Alice, Alex and Chris are the partners in the business engaged in trading activity of garments. · They are sharing profits and losses equally. · Interest is to be credited on fixed capitals at 5% p.a. · Interest is to be charged on drawings at 10% p.a. From the Trial Balance and the Cash at Bank Ledger below, collect and compile the following data together with the additional information and prepare the financial statements in line with accounting standards. Trial Balance as on 30th June 2019 Account Names Debit Credit Accounts Receivable $ 194,000.00 Allowance for doubtful debts $ 16,000.00 Accounts Payable $ 149,330.00 Inventory $ 94,870.00 Fixtures and Fittings $ 24,400.00 Accumulated depreciation $ 1,440.00 Motor Vehicles $ 115,100.00 Accumulated depreciation $ 37,000.00 Bank $ 54,600.00 Profit and Loss (Net Profit) $ 98,200.00 Capital - Alice $ 90,000.00 - Alex $ 60,000.00 - Chris $ 50,000.00 Current - Alice $ 14,000.00 - Alex $ 8,000.00 - Chris $ 2,000.00 Drawings - Alice $ 20,000.00 - Alex $ 15,000.00 - Chris $ 8,000.00 $ 525,970.00 $ 525,970.00 Further matters requiring adjustments are: · Alice, Alex and Chris are to be credited with salaries of $15,000, $17,500 and $20,000 respectively. · Interest on capital and interest on drawings need to be charged as well. · The partners have each agreed to transfer $10,000 from their Current account to their Capital account. · The opening Bank balance on 1st July 2018 was $30000. Cash at Bank Ledger Cash at Bank Debit Credit Balance 1/07/2018 balance b/d 30000 30000 DR 30/06/2019 accounts receivable 39000 69000 DR cash sales 151000 220000 DR interest received 7600 227600 DR sale of equipment 76000 303600 DR rent received 34000 337600 DR 30/06/2019 accounts payable 65000 272600 DR wages paid 35000 237600 DR other expenses paid 15000 222600 DR bank loan repayment 56000 166600 DR equipment purchased 89000 77600 DR GST paid to ATO 23000 54600 DR Complete the Following: (a) Prepare the Profit and Loss Appropriation account (b) Prepare the partners' current accounts in columnar form (c) Prepare the partnership Balance Sheet as at 30 June 2019 (d) Prepare a cash flow statement for the period ending 30th June 2019 (e) Write an email to your manager (teacher) to obtain verification and authorisation so that you have clear guidelines and approval to prepare the financial statements in accordance with the organisational requirements. (f) During an internal audit it was discovered that the cash sales amounting to $151000 shown in the above ledger is an incorrect figure and the correct