辅导案例-ACCT7101
ACCT7101 Accounting – Assignment #1 Problem sets: Journal Entries, Posting, and Financial Statements Due Date for Submission: 12 pm Monday 13th April 2020 (Weight: 25% of Final Grade) Aims of this assignment This assignment aims to develop your a) ability to understand the concept of accrual accounting, and b) skills and knowledge to complete the accounting recording process. This assignment is to be completed on an individual basis. Your submitted assignment must be entirely your own work. You may seek guidance from lecturers, tutors or fellow students to clarify concepts or the application of concepts to the financial reporting in general. Advice that is clearly associated with the assignment tasks cannot be sought or provided. Plagiarism is the submission of work or ideas which are not your own but for which academic credit is claimed. It is important that you review the University’s policy on plagiarism. The originality of your assignment will be assessed by the Turn-it-in system. Information from the course profile relating to plagiarism is reproduced below. Plagiarism The University has adopted the following definition of plagiarism: Plagiarism is the act of misrepresenting as one's own original work the ideas, interpretations, words or creative works of another. These include published and unpublished documents, designs, music, sounds, images, photographs, computer codes and ideas gained through working in a group. These ideas, interpretations, words or works may be found in print and/or electronic media. Students are encouraged to read the UQ Student Integrity and Misconduct policy (http://ppl.app.uq.edu.au/content/3.60.04-student-integrity-and-misconduct) which makes a comprehensive statement about the University's approach to plagiarism, including the approved use of plagiarism detection software, the consequences of plagiarism and the principles associated with preventing plagiarism. Assignment overview Students are required to answer the following two problem sets related to the accounting recording process. - [Journalising, posting, adjusting, closing, and the financial statements]- Q1. Ben Consulting Inc. completed the following transactions during its first month of operations for March 2020. (Note: Ignore GSTs) 01 Mar Ben Consulting Inc. began operations by issuing shares for $8,000 cash and a laptop worth $3,000 01 Mar Paid $1,500 cash for office supplies 01 Mar Borrowed $12,000 from the bank 01 Mar Prepaid $1,800 for 9-month insurance policy effective 1 March. 07 Mar Performed consulting services for a customer and received $1,300 cash 10 Mar Completed a consulting job, invoiced the customer $4,500 which is due to be collected within two weeks 14 Mar Paid employee salary, $1,200 15 Mar Received $10,000 cash for performing consulting services 18 Mar Collected $1,000 in advance for consulting service to be performed later 20 Mar Collected $4,500 cash from a customer on account 24 Mar Performed consulting services on credit, $1,800 28 Mar Paid employee salary, $1,200 31 Mar $200 amount of interest expenses are accrued 31 Mar Paid $1,500 cash dividend 31 Mar Paid office rent, $2,000. This rent is for the month of March Ben Inc. – Chart of accounts Assets Liabilities Equity Revenues Expenses 100 Cash 202 Salaries payable 300 Share capital 400 Service revenue 500 Salaries expense 105 Accounts receivable 203 Unearned service revenue 305 Retained earnings 503 Office supplies expense 110 Office supplies 205 Bank loan 310 Dividends 504 Depreciation expense 111 Prepaid insurance 210 Interest payable 330 Income summary 505 Insurance expense 112 Laptop 510 Interest expense 113 Accumulated depreciation 520 Rent expense a. Record each transaction in the journal. (Note: Narrations are not required.) b. Post the journal entries using the T-accounts. c. Prepare a trial balance for the month ended 31 March 2020. d. Journalise the following adjustments given at 31 March 2020. 1) Accrued salary expense, $300 2) Depreciation expense $150 3) Prepaid insurance expired, $200 4) Office supplies on hand, $1,000 5) Unearned service revenue earned during March 2020, $500 e. Post adjusting entries to the T-accounts. f. Prepare an adjusted trial balance. g. Prepare the statement of profit or loss and a calculation of retained earnings for March, and prepare a statement of financial position as at 31 March. h. Journalise and post closing entries and complete the closing process as if it were the end of the financial month. - [Inventory using the perpetual system: FIFO & LIFO]- Q2. In the following month (April 2020), Ben Consulting Inc. completed the following transactions. (Note: Ignore GSTs) 02 Apr Ben Consulting Inc. completed a consulting engagement and received cash of $8,200 02 Apr Prepaid three months’ office rent, $5,400 08 Apr Purchased 120 units software inventory on credit, $1,800. 11 Apr Paid employee salary, $1,200 14 Apr Sold 40 software units on credit, $1,000 16 Apr Consulted with a client for a fee of $2,500 on credit. 18 Apr Purchased 250 units software inventory on cash, $3,000 21 Apr Sold 120 software units for cash, $2,800 25 Apr Purchased 100 units software inventory on credit, $1,800 25 Apr Paid employee salary, $1,200 26 Apr Paid on account, $2,400 28 Apr Sold 220 software units for cash, $4,800 29 Apr Performed consulting services on credit, $2,500 30 Apr $200 amount of interest expenses are accrued 30 Apr Recorded the following adjusting entries: Accrued salary expense: $600 Depreciation: $150 Expiration of prepaid rent: $1,800 Office supplies on hand: $200 Prepaid insurance expired: $200 Unearned service revenue earnings during April 2020: $500 Ben Inc. – Chart of accounts Assets Liabilities Equity Revenues Expenses 100 Cash 200 Accounts payable 300 Share capital 400 Service revenue 500 Salaries expense 105 Accounts receivable 202 Salaries payable 305 Retained earnings 410 Sales Revenue 503 Office supplies expense 110 Office Supplies 203 Unearned service revenue 310 Dividends 504 Depreciation expense 111 Prepaid insurance 205 Bank loan 330 Income summary 505 Insurance expense 112 Laptop 210 Interest payable 510 Interest expense 113 Accumulated depreciation 520 Rent expense 120 Software inventory 530 Cost of sale - Software 131 Prepaid rent (a) Considering that Ben Inc. estimates inventory using FIFO method under perpetual inventory system, please (1) journalise and (2) post April transactions. (Note: Posting process requires opening & closing balances.) (b) Journalise and post adjusting entries. (Note: Posting process requires opening & closing balances.) (c) Let’s suppose that Ben Inc. estimates inventory using LIFO method under perpetual inventory system. Please journalise April transactions under this assumption. Assignment administration Format Submit your work as a single PDF document. Include your student number and name as a header to the document. The assignment should be prepared hand-written in order to mitigate cheating issues. Students may present either scanned hand-written answers or digital hand-written notes using their tablets. Submission Submit your assignment before or on the due date. Follow the instructions below. Submit the assignment electronically as a PDF to the Turn-it-in link in the course Blackboard, under the “Assessment” tab, then under “Assignment #1 Problem Sets”. Follow the submission instructions. The title of your assignment must be your student number followed by your name. Late submission An assignment submitted after the due date and time for which no extension has been granted prior to the due date will incur a late submission penalty. The penalty is applied at the rate of 5% of the total available marks for the assignment for each calendar day or part thereof that the assignment remains overdue. Extension of due date Requests for granting an extension to the due dates must be made in writing and signed (not via email) to the Course Coordinator at least 24 hours prior to the submission date. The request must contain documentation satisfactorily supporting the request. If an extension is approved, the new agreed date for submission will be noted on the application together with the Course Coordinator’s and the student’s signatures and a copy returned to the student.