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[answered] ACC101 - Fundamentals of Accounting I Submission Date: 9-De


Just confused about the question 1 and question 3. thanks a lot!


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

 


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