Question 1: Example of what kind of balance sheet is provided below? What is the difference between classified balance sheet and unclassified balance sheet?

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Question 2: Prepare the following register of property, plant and equipment from fixed asset transactions and outline any 4 legislative and organisational policy and procedures you must consider preparing the given below register.
Relevant Information to consider to prepare fixed asset transactions and register of property, plant and equipment:

a. Ram on 20/01/2016 had a Cylvana Motor make model X345, serial number 92345, testing and tagging is current, it is reported as “fit for purpose”.

b. Daren on 20/01/2016 had a Cylvana Motor make model X346, serial number 92346, testing and tagging is current, it is not reported as “fit for purpose”.

c. Taslim on 21/01/2016 had a Cylvana Motor make model X345, serial number 92347, testing and tagging is current, it is reported as “fit for purpose” from Sydney.

Organisation requirements (according to policy and procedures)

a. Review date should be on an annual basis from the date of entry

b. Comments and feedback must include the other Information available or the person 
involved

c. Risk management form should be completed the next day of date of entry after 
thorough analysis of all the involved risks.

d. Location details are Melbourne, Australia for all the entries if a location is not 
particularly specified.

e. Testing and tagging and fit for purpose should be either “yes” or “no” based upon 
the information provided and evaluated.

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Question 3: Organisation XYZ calculates depreciation using the sum of the years’ digits.
Let’s now assume that a plant asset is purchased at a cost of $160,000. The asset is expected to have a useful life of 5 years and then be sold for $10,000. What will be the asset’s depreciable amount to be expensed over its useful life of 5 years?

Question 4: On April 1, 2011, Company A purchased an equipment at the cost of $140,000. This equipment is estimated to have 5-year useful life. At the end of the 5th year, the salvage value (residual value) will be $20,000. Calculate the depreciation expenses for year ended December 2011, 2012 and 2013 using straight line depreciation method.

Question 5: On April 1, 2011, Company A purchased an equipment at the cost of $140,000. This equipment is estimated to have 5-year useful life. At the end of the 5th year, the salvage value (residual value) will be $20,000. Company A recognizes depreciation to the nearest whole month. Calculate the depreciation expenses for 2011, 2012 and 2013 using double declining balance depreciation method.

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Question 9: Construction of Deb and Ham’s new store began on 1 April 2009. The following costs were incurred on the construction:

List price of machine
Import duty
Delivery fees
Electrical installation costs
Pre-production testing
Purchase of a five-year maintenance contract with Plant 7,000
In addition to the above information Yucca was granted a trade discount of 10% on the initial list price of the asset and a settlement discount of 5% if payment for the machine was received within one month of purchase. Yucca paid for the plant on 25 March 2008.

1,500 2,050 9,500 4,900

Cost incurred

 
  $000

Freehold land 4,500
Architect fees 620
Site preparation 1,650
Materials 7,800
Direct labour costs 11,200
Legal fees 2,400
General overheads 940

The store was completed on 1 January 2010 and brought into use following its grand opening on the 1 April 2010. Deb and Ham issued a $25m unsecured loan on 1 April 2009 to aid construction of the new store. The loan carried an interest rate of 8% per annum and is repayable on 1 April 2012.

Required

Calculate the amount to be included as property, plant and equipment in respect of the new store and state what impact the above information would have on the income statement (if any) for the year ended 31 March 2010.

Question 10: Prepare the assets section of a classified balance sheet of MNO, Inc. as at 30 June 2015 based on the information given below:

d. Fixed assets cost of $220 million, accumulated depreciation of $60 million and accumulated impairment losses of $5 million

e. Software of $20 million written down value

f. Goodwill of $30 million, impaired to the extent of $5 million

g. Accounts receivable $15 million

h. Inventories of $25 million (including $2 million which are stores and spares of machinery)

i. Prepayments of $15 million on account of rent of factory premises

j. Advances made to employees on long-term basis of $10 million (of which $2 million is due within 12 months)

k. Investments made of $20 million ($10 million are held to maturity investments, which is 2020, $5 million are marketable securities that meet the definition of cash equivalents, the rest are short-term investments)

Cash of $12 million

Question 11: During the year to 30 June 2017, Raxx sold a non-current asset for amount of $ 36,000. He acquired this asset 3 years ago, at the cost of 1,38,000. The accumulated depreciation at the date of disposal was $ 1,38,000. Calculate the profit and loss on disposal and proceed with the general journal for the asset disposable account.

 

Question 14: Adjust the following ledger accounts for inventories, if required, and transfer to final accounts:

14.1 On 12/31/X2 (before the adjusting process), Supplies, an asset, has a balance of $2,500. Employees take a physical account of the supplies on hand. That physical count reveals that $1,200 of supplies remains.

14.2 On 8/31/X2, $4,800 was paid for a two-year insurance policy. The journal entry on that day included a debit to Prepaid Insurance and a credit to Cash for $4,800.

Question 15: Make the following general journal entries for balance day on June 30,2016 for the following:

General salaries of $1500 due but not paid.

Advertising expense of $3200 for moth of July paid in advance.

Bad debt of $2200 to be written off. The amount given is including GST.

Commission income for month of June $300 due.

Depreciation charges for the year for plant and equipments is $36,200.

Question 16: Prepare “Post revenue and expense account “balances to final general ledger accounts 
16.1 Entity A borrowed $300,000 dollars on June 1, 20X1 Interest on the borrowings is scheduled to be paid on July 28, 20×2 Interest amount for three months is $3,000. 
Prepare an adjusting journal entry on June 30 20X1

16.2 After the accounts have been adjusted at the end of the fiscal year, the following balances are taken from the ledger of Nomi Motors Pty Ltd.

Retained earnings $615,850

Dividends
Fees Earned
Wages Expense
Rent Expense
Supplies Expense MiscellaneousExpense$6200

$25,000 $380,450 $250,000 $65,000 $18,250

Journalise the four entries required to close the accounts.

Question 17: Answer the following questions regarding final general ledger accounts to reflect gross and net profits for reporting period (Answer each question in 50-100 words):

17.1 At the end of the financial year, after all adjustments have updated the General Ledger and an Adjusted Trial Balance has been prepared, what steps are taken to prepare final general ledger accounts to reflect gross and net profits for the reporting period in the manual set of books.

17.2 How does one calculate gross and net profits for a software company, given the virtual nature of the goods sold?

17.3 For the month of May, Jeff has sold 30 products at $15 each. Each product costs him $10 to produce and his overall operating costs for the month are $80. What will be Jeff’s Gross and Net Profits for the month?

Question 18: Given below is a revenue statement prepared in accordance with organisational requirements to reflect operating profit for reporting period. Review the details and answer the following questions:

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18.2 What are three benefits to using a multiple-step revenue statement instead of a single-step revenue statement?

 

Question 19: Prepare the following income statement and balance sheet to reflect financial position of business at end of reporting period based on the trial balance:

Following is a sample of trial balance provided in the attached template. You are required to prepare an income statement and balance sheet based on trial balance.

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Question 27: Using the information below, you are required to complete an asset register, including the depreciation schedule and disposal details, for each non-current asset listed:

Note: Each item requires you to use a different depreciation calculation method.

XYZ PTY ltd Fixed Asset List

1 Plant and Equipments 1 Jan 2010 1,40,000 5 years 20,000 Double declining depreciation method

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Please note the disposal details for each asset:

Asset 1

31 Dec 2015 Sale – Auction $20,000
Asset 31 Dec 2015

Sale – Private $20,000

Your facilitator can provide you with an electronic copy of the asset register for you to complete this assessment. Alternatively, you can recreate the template in Excel.

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Specifications

l. Please complete one asset register for each asset.

m. Ensure you keep a copy of all work submitted for your records. And:

n. All fields on the asset register must be completed.

The depreciation schedule must demonstrate that you accurately calculated depreciation 
using the correct method of calculation.

 

Question 28: When looking at a T-account for each of the account classifications in the general ledger, mention if these are debit or credit balance:

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Question 30: Following are key balance day adjustments.
Relevant information for the preparation of adjusting entries of Company A:

General salaries for amount of $1200 are not paid and still due that needs to be paid.

Prepaid advertising expense of $1600 paid in advance for current month i.e. June

Bad debts by a company of $1,100 that the company has not received needs to be written off.

Note: the bad debts include GST.

The commission income is still due and has not been received of amount $300

Depreciation charges for year for plant and Equipment is $34,200.

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Based on the adjusting entries, create a general Journal and Prepare final general ledger accounts in MS-Excel.

 

 

 

 

 

 

 

 

Project1 :

Ms. Mehra has been operating her volume controlled business and bought several equipment’s, ingredients, components, facilities and other resources. His business has been growing rapidly and has approached the end of financial period. The accountant for Ms. Mehra’s business in required to prepare the financial reports based on trial balance of the company. 
The trial balance for the Ms. Mehra’s organisations has been disclosed in the attached template.

The adjusting entries are provided to for the month of June 30,2008. Trial balance is attached in the provided templates

Based on the trial balance and accounting cycle requirements as per organisational policy, Accountant is required to prepare the following before the end of financial year and fill in the provided templates:

Template 1: Template for General Journal of adjusting entries Template 2: Template for General Ledger
Template 3: Template for adjusted trial balance
Template 4: Template for Asset Register

Template 5: Template for Income statement
Template 6: Template for Balance Sheet
Template 7: Template for identified errors and resolution

Prepare the following for Ms. Mehra:

1. Prepare a register of property, plant and equipment from fixed asset transactions

2. Determine the method of calculating depreciation

3. Maintain the asset register and associated depreciation schedule as required

4. Record depreciation of non-current assets and disposal of fixed assets as required (use 
straight line depreciation method)

5. Adjust expense accounts and revenue accounts for prepayments and accruals

6. Record bad and doubtful debts

7. Adjust ledger accounts for inventories, if required, and transfer to final accounts

8. Enter general journal entries for balance day adjustments in general ledger system as 
required

9. Post revenue and expense account balances to final general ledger accounts system

10. Prepare final general ledger accounts to reflect gross and net profits for reporting period

11. Prepare revenue statement to reflect operating profit for the reporting period

12. Prepare balance sheet to reflect financial position of the business at the end of the reporting 
period

13. Identify and correct, or refer errors for resolution in accordance with policies and 
procedures

14. Prepare a register of property, plant and equipment from fixed asset transactions

15. Determine the method of calculating depreciation

16. Maintain the asset register and associated depreciation schedule as required

17. Record depreciation of non-current assets and disposal of fixed assets as required

18. Adjust expense accounts and revenue accounts for prepayments and accruals

19. Record bad and doubtful debts

20. Adjust ledger accounts for inventories, if required, and transfer to final accounts

21. Enter general journal entries for balance day adjustments in general ledger system as 
required

22. Post revenue and expense account balances to final general ledger accounts system

23. Prepare final general ledger accounts to reflect gross and net profits for reporting period

24. Prepare revenue statement to reflect operating profit for the reporting period

25. Prepare balance sheet to reflect financial position of the business at the end of the reporting period

26. Identify and correct error

 

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Adjusting entries:

Balance day adjustments are required for:

commission income due, not received $370

bad debt to be written off $660 including GST

allowance for doubtful debts to be adjusted to 3% of accounts receivable (after bad debt 
write-off)

holiday pay to be provided $880

physical stocktake revealed inventory on hand $58,520

depreciation buildings $3 100 and motor vehicles $5 580 to be provided.

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Template 2: Template for General Ledger:

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Template 3: Template for adjusted trial balance:

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Template 4: Template for Asset Register:

 

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Template 5: Template for Income statement:

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Template 6: Template for Balance Sheet:

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Template 7: Template for identified errors and resolution:

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Project 2

Part 1:
Complete the following steps and record journal entries for balance day adjustments:

Record the general journal entries for January and February

Adjust expense and revenue accounts for prepayments and accruals as required

Any bad debt should be recorded appropriately following Australian Accounting Standards

Adjust ledger accounts for inventories and transfer this into final accounts. Ray White is able to store his fish for 2 months without them going bad.

Students should next prepare final general ledger accounts as follows:

Enter general journal entries for balance day adjustments into general ledger

Post revenue and expense account balances

Ensure general ledger accounts reflect gross and net profits for the reporting period of 
January-February 2016.

Note: The instructor may role play the part of Ray White if more information in term of company procedure etc. is sought.

Part 2:
For this part, students are required to prepare end-of-period reports as instructed.

• Prepare a revenue statement for the January-February Operating period

• Prepare a balance sheet with organizational requirements to reflect final position of 
business

• Ensure any errors are identified & referred to Ray White (Played by instructor). If 
adjustments are required, they should be done in accordance to the guidelines set by the instructor. 
Fill the attached templates based on information provided in appendix 1-3:

o TemplateforGeneralJournalEntriesforJanuary

o TemplateforGeneralJournalEntriesforFebruary

o TemplateforGeneralLedger

o Templateforbalancesheet

o TemplateforIncomestatement

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