Unit: ACC101 – Fundamentals of Accounting I Submission Date: 9-Dec-2016 before 5.00 pm Weighting: The assignment is worth 40% of the total unit weight. Instructions:
1. Students are required to cover all stated requirements.
2. Your answer must be uploaded to Moodle in word file with
your full name and student ID number.
3. You need to support your answers with appropriate Harvard
style references where necessary.
4. Only include information in your appendixes that has been
directly referred to in the body of your document.
5. Include a title/cover page containing the subject title and code
and the name, student id number and name.
6. Please save the document as
ACC101_B1T22016_first name_Surename_Student
Number
Eg:ACC101_B1T22016_John_Smith_20160000 1 Question 1: Control Account and Subsidiary ledgers (15 marks)
The post-closing trial balance of Pollack Ltd as at I November 2012 contained the
following normal balances:
Account no.
1100
1120
1130
1140
1150
1160
1210
1215
1220
1225
2110
2120
2150
3110
3120
4110
4115
4120
5110
5115
5120
5130
5140
5150 Account title
Cash at Bank
Accounts Receivable
Bills Receivable
Inventory
Prepaid Insurance
GST Outlays
Delivery Vehicle
Accumulated Depreciation – Delivery Vehicle
Office Equipment
Accumulated Depreciation – Office Equipment
Accounts Payable
Bills Payable
GST Collections
Share Capital
Retained Earnings
Sales
Sales Returns and Allowances
Discount Received
Purchases
Purchases Returns and Allowances
Discount Allowed
Rent Expense
Electricity Expense
Salaries Expense Account balance
$120 000
14 540
1 500
160 000
4 000
80 000
8 000
48 000
8 000
11 560
7 000
384 000
9 480 Subsidiary ledger balances at 31 October 2012 were:
Accounts Receivable
Customer
D. Draper
C. Hand
T. Tremble Date of sale
28 October
30 October
18 October Terms
2/10, n/30
2/10, n/30
2/10, n/30 Amount
$4 200
4 620
5 720 Accounts Payable
Creditor
Laws Ltd
M. Merlow
Lenny Ltd Date of purchase
19 October
10 October
23 October Terms
1/30, n/60
n/30
1/15, n/30 Amount
$3 280
5 300
2 980 Nov.
1 Bought inventory from M. Merlow on credit, $4800 plus GST; terms n/30. Purchased 1
year’s insurance cover for $1800 plus GST, cheque no. 400. 3 Inventory sold to C. Hand last month was returned. Issued an adjustment note for the amount
of $110 (including GST).
Received a cheque from D. Draper to cover the sale made on 28 October. 4 Paid Lenny Ltd cheque no. 401 for purchase of 23 October.
Purchased inventory from Laws Ltd on credit, $4800 plus GST; terms 1/10, n/60. 5 Issued cheque no. 402 for $3300 to M. Merlow on account, and issued a 60-day 10% bill
2 payable for the balance due on the purchase of 10 October
8 12 Paid November rent of premises $1080 plus GST, cheque no. 403. Paid Laws Ltd for the
purchase of 19 October, cheque no. 404.
Sold inventory on account to A. Arnott, $9000 plus GST; terms 2/10, n/30. Received cash
for the issue of additional share capital, $60 000 (GST-free).
Received cheque for $2860 from T. Tremble in part payment of the sale made on 18
October, together with a bill receivable for the balance due.
Sold merchandise to D. Draper on account, $9600 plus GST; terms 2/10, n/30. 13 Purchased goods on credit from Lenny Ltd, $7920; terms 1/15, n/30 (including GST). 14 Paid fortnightly salaries by cheque no. 405, $2400.
Cash sales from 1 November to 14 November, $18 400 plus GST. 18 Sold goods to T. Tremble on account, $9300 plus GST; terms 2/10, n/30. 19 Received an adjustment note from Lenny Ltd for $154 for defective goods returned (includes
GST).
Forwarded cheque no. 406 to ATO to cover GST owing from previous month, $3000. 10
11 20 A. Arnott forwarded a cheque for $2640 on account; no discount was allowed. Purchased
goods for cash. Issued cheque no. 407 for $10 800 plus GST. 21
26 Received a cheque from D. Draper for $1320 and a promissory note (bill receivable) for the
balance of his account; no discount was allowed.
T. Tremble forwarded a cheque for the goods sold on 18 November. 27
28 Paid Lenny Ltd for the purchase made on 13 November, cheque no. 408.
Paid fortnightly salaries with cheque no. 409, $2400 (GST-free). 30 Electricity account paid by cheque no. 410, $420 plus GST.
Cash sales from 15 November to 30 November, $18 000 plus GST.
Purchased inventory on credit from Lenny Ltd, $7260; terms 1/15, n/30 (includes GST). Required A. Record the November transactions (round amounts to the nearest dollar) in appropriate special
journals and the general journal. B. Open running balance accounts in the subsidiary ledgers and their control accounts in the
general ledger, and enter the opening details of these accounts. C. Post relevant data from the journals to the appropriate running balance subsidiary ledger
accounts. D. Prepare schedules of accounts receivable and accounts payable as at 30 November 2012, and
reconcile to the appropriate subsidiary ledger control accounts in the general ledger. E. Prepare the GST Collections and GST Outlays accounts as they would appear at 30 November
2012. 3 Question 2: Journal Entries, Discounts, Closing Entries and Income Statement- Both
Perpetual and Periodic Inventory Systems (15 marks)
Starbright Lighting buys lamps for $40 each and sells them for $70 each. On 1April 2013, 24 lamps
were in inventory. Starbright Lighting completed the transactions below during April.
April 3 Purchased 40 lamps on account. Terms: 2/10, n/30, EXW supplier’s warehouse. 4
5 Paid freight cost of $60 on 3 April purchase. 9 13 Returned 10 of the lamps purchased on 3 April and paid the amount due on the lamps
retained in stock.
A customer returned 3 of the lamps sold on 5 April. The lamps were not defective and
were returned to stock.
Purchased 20 lamps on credit. Terms: 2/10, n/30, EXW supplier’s warehouse. 14
19 Received payment from customer for the amount due on 5 April sale.
Sold 39 lamps for cash at $60 each. 20 Four of the lamps sold on 19 April were returned by the customer for a cash refund.
The lamps were not defective.
Paid the supplier the amount owed for the 13 April purchase. 10 22 Sold 22 lamps on account. Terms: 3/10, n/30, DDP acquirer’s warehouse. Paid freight
cost of $30. A physical inventory count taken on 30 April 2013 showed 20 lamps in stock. Required
A. In two columns and ignoring GST, prepare general journal entries to record the transactions
assuming:
1. a perpetual inventory system is used
2. a periodic inventory system is used. Narrations are not required.
B. Repeat requirement A but assume the business is registered for the GST. C. Assuming Starbright closes its accounts at month-end, prepare relevant entries to close
the accounts under both inventory systems. 4 Question 3: Adjusting the accounts and preparing financial statements (10 marks)
The following trial balance was prepared from the ledger accounts of Taiwan Consultants a firm
of management consultants.
Taiwan Consultants
Unadjusted Trial Balance as at 30 June 2011 Debit
Bank
Stock office supplies on hand
Office equipment
Accumulated depreciation, office equipment
Premises
Accumulated depreciation, premises
Accounts payable
GST collections
GST outlays
Accounts receivable
Fees revenue
Rent revenue
Advertising expense
Administrative expenses
Salaries
Internet service provider
Interest expense
Telephone expense
Loan (due 1 Sept 2015)
Capital – L. Lee
Drawings – L. Lee $
41,520
11,890
152,000 Credit
$ 24,400
800,000
64,000
33,000
5,500
3,500
46,000
880,600
16,000
25,000
30,000
390,000
2,000
19,000
8,000
200,000
345,410
40,000
$1,568,910 $1,568,910 Adjustments:
•
•
•
•
•
•
• Salaries are $1500 per day. They are paid weekly in arrears. The next pay day is July 3 which
is a Wednesday.
Depreciation on premises is 2% pa, on a straight-line basis.
Depreciation of office equipment is 10% of the equipment’s cost.
On 1 January, 2011. Taiwan Consultants rented part of its premises to T. Light for 12 months
and received a cheque for $16,000 representing the whole year’s rental.
Office supplies of $6,390 had been used during the year. Office supplies of $5,500 were on
hand at the end of the period.
Advertising of $2,000 was prepaid for an advertising campaign starting in July 2011.
$6,000 is owing for consulting work completed but not yet billed to the client. Required a)
b)
c) Prepare general journal entries for the balance day adjustments.
Prepare an Income Statement for the year ended 30 June 2011.
Prepare a classified Balance sheet as at 30 June 2011. 5