2024 – Objectives This assessment item relates to the course learning outcomes 1 3 as stated on Page
Accounting – Assestment – 2024
Objectives
This assessment item relates to the course learning outcomes 1 – 3 as stated on Page 1.
Details
This assignment can (and should be) worked on each week commencing in Week 1, and submitted when all questions have been completed. Penalties will apply for late submission of assignments.
Answer all questions.
Copies of the format for General Journal, General Ledger (T-Format and 3 column format) and Financial Statements will be available on Moodle. These should be used to record the answers for the assignment.
Do not use a computerised accounting program for this assignment.
This is an individual assignment.
Question 1 17 Marks
Secure Storage Services was formed on 1st May 2014. The following transaction took place during first month.
Transactions on 1st May
1. Paul Taylor invested $ 60,000 cash in business , as its sole owner.
2. Hired two employees to work in the warehouse. They will each be paid a salary of $1000 per month.
3. Signed a two years rental agreement on the warehouse; paid $18,000 cash in advance for the first year.
4. Purchase furniture and Equipment costing $35,000. A cash payment of $10,000 was made immediately; the remainder will be paid in six months.
5. Paid $1,500 cash for a 1 year insurance policy on the furniture and equipment.
6. Purchase basic supplies for $500 cash
7. Purchase more office supplies for $1,500 on account.
8. Total revenue earned was 15,000 – $5000 cash and @10,000 on account.
9. Paid $400 to supplier for account payable due.
10. Received $2,500 from customer in payment of accounts receivable.
11. Received utility bills in the account of $200 to be paid next month.
12. Paid monthly salaries of the two employees, totalling $2,000
Required:
a) Prepare journal entries to record each of the events listed. (3 Marks)
b) Open T account and Post the journal entries in T accounts. (11 Marks)
c) Prepare trial balance as at 31stMay 2014. (3 Marks)
Question 2 10 Marks
You are employed to investigate whether any accrual entries are needed in the business of Unique Security Services. On completion of your investigation on 30 June, you have discovered that the following items need attention:
- Employee salaries owed but not recorded $19,200.00.
- Prepaid insurance expired, $1900.00.
- Interest revenue accrued but not recorded $10,000.00.
- Unearned security services revenue now earned $14,600.00.
- Depreciation not recorded $16,000.00.
- Used supplies of $1,800.00.
- Nine months of rent $1,350.00 were paid in advance 1 April.
- Accrued advertising expenses, $900.00.
Required:
a) Prepare the adjusting entries for the items 1 to 8 at 30 June, the end of the accounting period. (8 marks)
b) Suppose the adjusting entries in requirement (a) were not made. Calculate
the total overstatement or understatement of profit as a result of the omission
of these adjustments. (2 marks)
QUESTION 3 23 Marks
On 30 June 2014, the ledger of Jackson Brown, roofing supplies, contained the accounts and account balances shown below:
|
ACCOUNT
|
DEBIT
|
CREDIT
|
|
Cask at bank
|
$ 5000
|
|
|
Accounts Receivable
|
3,600
|
|
|
Roofing supplies
|
2,280
|
|
|
Equipment
|
12,000
|
|
|
Accumulated Depreciation – Building
|
|
2,400
|
|
Accounts Payable
|
|
2,800
|
|
Unearned Revenue
|
|
600
|
|
Mr, Brown Capital
|
|
14,000
|
|
Mr, Brown Drawings
|
1,200
|
|
|
Service Revenue
|
|
6,000
|
|
Salaries Expense
|
1,400
|
|
|
Miscellaneous Expenses
|
400
|
|
|
|
|
|
|
|
|
|
|
TOTAL
|
$25,800
|
$25,800
|
The following information has not yet been recorded:
- A physical count reveals only $280 of roofing supplies on hand .
- Depreciation on the equipment is $400.00.
- Unearned Revenue amounted to $260 after adjustment at the yearend balance
- Accrued salaries are $700.
REQUIRED:
a) Prepare a 10-colum worksheet for the year ended 30 June 2014. (11 marks)
b) Prepare an income statement, a statement of changes in equity and a balance sheet. (5 marks)
c) Journalise the closing entries. (7marks)
Assessment criteria
The marking criteria sheet at the end of the assignment indicates the allocation of marks for the assignment. Please submit an electronic copy of this marking criteria sheet including your name and your student ID when submitting your assignment.
Note: there is a 5% penalty per day for late submission
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