Using the information in your data sheet, you are required toi. use an accounting worksheet to analyse transactions and balance-day adjustments for the month’s activities, then record it in an excel worksheet.
ii. By using the analysis archived in your assignment worksheet to prepare financial statements: Income Statement, Balance Sheet, and Classified Statement of Cash Flows.
iii. Provide a short justification (less than 120 words) on the possibility to comprehend financial performance of the proprietor that you analysed.
1 +- Read the below data sheet and complete the two requirements to fulfill Part A individual assignment Proprietor: Mr. Isell Holmes Name of the private business: Realtor 21 Description: Real Estate Agent Staff number: 20 The business has the following opening balances: Additional information: Cash at bank $11,674 Bank loan interest rate (% per year) 10 Account receivable $16,961 Motor vehicle useful life(years) 3 Motor Vehicle $35,313 Motor vehicle scrap value ($) $2,810 Account payable $7,679 Insurance paid for (months) 4 Bank loan (due 2013) $28,425 Rent paid for (months) 3 Furniture $23,407 Furniture useful life(years) 2 Promotional Material Supplies $503 Furniture scrap value ($) $0 Capital ? Closing stock of promotional materials on 30/6($) $959 Staff work a 14 days forngiht and are paid on the 15th day. Transaction: Date Description Amount Date Description Amount 1-Jun Motor Vehicle Expenses $408 1- Jun Paid general insurance $2,627 S2 2020 ACC-ACF Accounting for Business 5903 - Department of Accounting – Assignment 1 2 3-Jun Rent of Business Premises $3,724 4- Jun Rental commission - account $1,442 5-Jun Advertising placement fees -cash $703 5- Jun Cash withdrawal by the owner $840 8-Jun Purchase promotional materials $644 8- Jun Rental commission - cash $1,994 9-Jun Auction commission - Cash $1,857 10- Jun Receive Payment from account customers $1,966 11-Jun Advertising placement fees - account $854 11- Jun Auction commission - account $758 11-Jun Advertising expenses - account $1,182 12- Jun Auction commission - cash $1,833 13-Jun Auction commission - account $896 13- Jun Rental commission - account $1,370 13-Jun Advertising placement fees - account $801 15- Jun Staff wages $2,517 17-Jun Payment to account payable $1,346 19- Jun Advertising placement fees - cash $775 20-Jun Sundry expenses $283 22- Jun Receive payment from account customers $1,563 23-Jun Advertising expenses - cash $772 23- Jun Payment to account payable $1,018 27-Jun Rental commission - cash $1,900 27- Jun Additional cash contributed by owner $3,406 29-Jun Staff wages $2,517 Comments: -Assume that this assignment involves an existing business that was purchased by the new owner on 1 June 2010. -Note the list of transactions is in date order, left to right, line by line. -Use three separate ledger accounts for revenue, namely rental commission, auction commission and advertisement placement fees. All revenues relate to the month of June. -Transactions involve cash unless specificed as 'Account'. 3 -Record payments for rent and insurance in prepaid accounts initially. -Information relevant to complete adjusting entries can be found in the top right section of this page. -The periods to which the rent and insurance apply commence on 1 June. -Round your calculations to the nearest dollar. Requirements: 1. Prepare Worksheet entries, Income statement, Balance Sheet, and Classified statement of Cash Flows (submission requirement refers to Assignment Guideline at Moodle) 2. By using the financial statements you prepared in question (1), are you able to have a comprehensive evaluation of the focal company's financial performance? Provide your justification (less than 120 words). Copyright@Monash University 2020. mailto:Copyright@Monash%20University%202020. Copyright © Monash University 2020. All rights reserved. Except as provided in the Copyright Act 1968, this work may not be reproduced in any form without the written permission of the host Faculty and School/Department. ACC/ACF5903 Semester 2 2020 Assignment 1 – Accounting Basics Chief Examiner: Dr. Karen Zhang Assessment marks: This assignment accounts for 15% (part A 10% and part B 5%) of the total marks for the unit. The assignment must be completed and submitted individually. Due Date: 8am Friday 11 Sep (Week 6) If you are a student registered with Disability Support Services and require approved forms of support to complete this assignment, you must notify the Chief Examiner prior to one week before the due date. Submission Details • The Assignment consists of two parts. Part A must be submitted through Moodle link (under the session entitled Assignment 1). If for any unexpected circumstance cannot submit by due time, you must notify the lecturer with supporting document(s) one week in advance. • Late assignments may be subject to penalties and any extensions will not be granted. • Assignment Part A must be submitted with the Faculty cover sheet attached. The cover sheet can be accessed in the Assignments section on Moodle. Objective: The objective of the assignment is to give you experience in recording business transactions, preparing and evaluating (where appropriate) financial reports for a service business. Data Sheet: You will receive a data sheet at your Moodle allocated tutorial group with which to complete the assignment. Note, the format of the data sheet is pdf. Requirements: PART A Using the information in your data sheet, you are required to i. use an accounting worksheet to analyse transactions and balance-day adjustments for the month’s activities, then record it in an excel worksheet. An Excel worksheet to assist you is available on Moodle; ii. By using the analysis archived in your assignment worksheet to prepare financial statements: Income Statement, Balance Sheet, and Classified Statement of Cash Flows. Copyright © Monash University 2020. All rights reserved. Except as provided in the Copyright Act 1968, this work may not be reproduced in any form without the written permission of the host Faculty and School/Department. iii. Provide a short justification (less than 120 words) on the possibility to comprehend financial performance of the proprietor that you analysed. Note: • Use the Notes column of the Worksheet to describe the type of expense and income – this will make your preparation of the Income Statement easier; • You may wish/need to change the column headings of the work sheet (i.e. the account names) and/or add columns; • You must show and explain your calculation of the values of all adjusting entries. This can be provided either in the Worksheet or on separate pages; • Formatting: ensure it fits well in an A4 page and readable at Moodle. • The Statement of Cash Flows must be classified, i.e. cash flows must be shown in the categories of operating, investing, and financing cash flows; • You must use the Direct Method to prepare the Statement of Cash Flows. Show all calculations; • Round all monetary amounts to the nearest dollar; • Since the business does not trade in products, it does not have an inventory account, and it is not necessary for the Income Statement to show Cost of Sales or Gross Profit. PART B Part B consists of a short quiz to be completed in week 6 Friday 11 Sep (6-6:15pm – please reverse the time). The skills and knowledge required by the task are relevant to those required for Part A. Marking: Part A (quantitative 7 + qualitative 3) Part B 5 Total 15 Assignment Part A will be scored out of 100 and converted to a mark out of 10. Scoring is as follows (Consequential marks will be given): Worksheet entries 44 Income Statement 8 Balance Sheet 8 Statement of Cash Flows 10 Qualitative justification 30 Total 100 Assignment worksheet BALANCE SHEETINCOME STATEMENTNOTES DATEASSETSLIABILITIESEQUITYINCOME EXPENSE CashPre-paymentsVehiclesVehicle Acc. Dep'nSuppliesOffice Equip'tOffice Acc dep'nA/RecA/PayBank loanAccrued expensesCapitalDrawings o/balances Unadjusted month end balances$0$0$0$0$0$0$0$0$0$0$0$0$0$0$0 Adjusting Entries c/balances$0$0$0$0$0$0$0$0$0$0$0$0$0$0$0