Assessment Task – Tutorial Questions Unit Code: HI5001 – Mid Term/Block Mode Unit Name: Accounting for Business Decisions Assignment: Tutorial Questions Due: 11:30pm Friday, 23 October 2020 Weighting:...

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Assessment Task – Tutorial Questions Unit Code: HI5001 – Mid Term/Block Mode Unit Name: Accounting for Business Decisions Assignment: Tutorial Questions Due: 11:30pm Friday, 23 October 2020 Weighting: 50% Total Assignment Marks: 50 marks Purpose: This assignment is designed to assess your level of knowledge of the key topics covered in this unit Unit Learning Outcomes Assessed: 4, 5, 6, 7 Description: Each week students were provided with three tutorial questions of varying degrees of difficulty. These tutorial questions are available in the Tutorial Folder for each week on Blackboard. The Interactive Tutorials are designed to assist students with the process, skills and knowledge to answer the provided tutorial questions. Your task is to answer a selection of tutorial questions for the following topics and submit these answers in a single document. The questions to be answered are: Question 1 (Topic 4) - 10 marks The unadjusted trial balance of Helena’s Hire Cars is shown below (ignore GST). Helena’s Hire Cars Trial Balance As at 30 June 2019 Account Debit Credit Cash at bank 18,140 Accounts receivable 21,340 Office supplies 640 Prepaid advertising 3,880 Hire cars 93,600 Accumulated Depreciation - hire cars 39,400 Accounts payable 10,800 Unearned hire fees 2,260 Helena, Capital 68,340 Helena, Drawings 20,600 Hire fees revenue 98,700 Wages expense 50,620 Fuel and oil expense 10,680 219,500 219,500 Additional information a. Petrol purchased on credit for $680 and used during the last week in June has not been paid for or recorded. b. A physical count showed office supplies totalling $340 were still on hand at 30 June. c. Depreciation for 1 year on the hire cars is $12,400. d. Prepaid advertising has a balance of $600 at the end of the month. e. The balance in the Unearned Hire Fees account includes $1,800 received in May for hire services completed in June. Required: Prepare a 10-column worksheet for the year ended 30 June 2019. Unadjusted trial balance Adjustments Adjusted trial balance Income statement Balance sheet Account Title Debit Credit Debit Credit Debit Credit Debit Credit Debit Credit Cash at Bank 18,140 Accounts Receivable 21,340 Office Supplies 640 Prepaid advertising 3,880 Hire Cars 93,600 Accum. Depr. Hire Cars 39,400 Accounts Payable 10,800 Unearned Hire Fees 2,260 Helena, Capital 68,340 Helena, Drawings 20,600 Hire Fees Revenue 98,700 Wages Expense 50,620 Fuel and Oil Expense 10,680 $219,500 $219,500 Profit for the year Question 2 (Topic 7) - 9 marks Below is information about Adam Ltd’s cash position for the month of May 2020. 1. The general ledger Cash at Bank account had a balance of $42,400 on 30 April. 2. The cash receipts journal showed total cash receipts of $585,408 for May. 3. The cash payments journal showed total cash payments of $530,148 for May. 4. The June bank statement reported a bank balance of $82,368 on 30 May. 5. Outstanding cheques at the end of May were: no. 221, $2896; no. 225, $308; and no. 230, $820. 6. Cash receipts of $20,180 for 31 May were not included in the May bank statement. 7. A dishonoured cheque written by a client Jim Ltd, $272 8. A credit for an electronic transfer from a customer of $1,288 9. Interest earned, $88 10. Account and transaction fees, $240. Required: a) Update the cash receipts and cash payments journals by adding the necessary adjustments and calculate the total cash receipts and cash payments for May. (4 marks) b) Post from cash receipts and cash payments journals to the Cash at Bank ledger account and balance the account. (1 mark) c) Prepare a bank reconciliation statement at 31 May. (4 marks) Cash Receipts Journal Date Particulars Cash at Bank Cash Payments Journal Date Particulars Cash at Bank Question 3 (Topic 8) - 9 marks On 1 June 2020, Mason Ltd. had Accounts Receivable $424,778 and Allowance for Doubtful Debts accounts $6,050. Ignore GST. During June, the following transactions occurred: 1. Revenue earned on credit, $597,500. 2. Sales returns, $12,050. 3. Accounts receivable collected, $700,000. 4. Accounts written off as uncollectable, $5,926. Based on an ageing of accounts receivable on 30 June, the firm determined that the Allowance for Doubtful Debts account should have a credit balance of $6,750 on the balance sheet as at 30 June 2020. Ignore GST. Required: a) Prepare general journal entries to record the four transactions. (4 marks) b) Prepare journal entries to adjust the bad debts expense and allowance for doubtful debts account. (1.5 marks) c) Show how accounts receivable and the allowance for doubtful debts would appear on the balance sheet at 30 June 2020. (2 marks) d) On 10 July 2020, Kent Ltd, whose $1,300 account had been written off as uncollectable in June, paid its account in full. Prepare journal entries to record the collection. (1.5 marks) Question 4 (Topic 9) - 8 marks The following information relates to the inventory of Margaret’s Megamart Ltd during December. Ignore GST. Date Units Units cost Total cost 1/12 Beginning inventory 700 $ 12.00 $ 8,400 10/12 Purchase 500 12.60 6,300 15/12 Purchase 300 13.20 3,960 23/12 Purchase 500 14.00 7,000 Totals 2,000 $25,660 Margaret’s Megamart Ltd uses the periodic inventory system. A physical count on 31 December verified that 650 units were on hand. Required: a) Determine the Ending inventory and Cost of Sales for the month of December, using the FIFO costing method. (3 marks) b) Determine the Ending inventory and Cost of Sales for the month of December, using the weighted average costing method. (3 marks) c) Which cost flow method(s) resulted in higher gross profit on sales? a higher ending inventory? Explain your results. (2 marks) Question 5 (Topic 10) - 9 marks Nevertire Ltd purchased a delivery van costing $52,000. It is expected to have a residual value of $12,000 at the end of its useful life of 4 years or 200,000 kilometres. Ignore GST. Required: a) Assume the van was purchased on 1 July 2019 and that the accounting period ends on 30 June. Calculate the depreciation expense for the second year using each of the following depreciation methods (6 marks) · straight-line · diminishing balance (depreciation rate has been calculated as 31%) · units of production (assume the van was driven 50,000 kilometers in the first year and 78,000 kilometres during the second financial year). b) Record the adjusting entries for the depreciation at the end of the second financial year using straight-line method. (1 mark) c) Show how the van would appear in the balance sheet prepared at the end of year 2 using Straight-line method. (2 marks) Question 6 (Topic 11) - 5 marks The following information is related to Sunglow Solar Ltd: · Sales for the year ended 30 June 2019 was $1,200,000 · Provision for warranties before adjustment was $36,000 At 30 June 2019, Sunglow Solar Ltd. adjusted its Provision for Warranties so that it would be equal to 4% of sales for the year ended on that date. On 16 September 2019, a successful claim for warranty on faulty goods to the cost of $700 was made on Sunglow Solar Ltd. Required: a) Prepare the general journal entry at 30 June 2019 to adjust the Provision for Warranties to the required level. (3 marks) b) Record the payment of the warranty claim on 16 September 2019 in general journal format. (2 marks) Submission Directions: The assignment has to be submitted via Blackboard. Each student will be permitted one submission to Blackboard only. Each student needs to ensure that the document submitted is the correct one. Academic Integrity: (see next page) Academic Integrity Holmes Institute is committed to ensuring and upholding Academic Integrity, as Academic Integrity is integral to maintaining academic quality and the reputation of Holmes’ graduates. Accordingly, all assessment tasks need to comply with academic integrity guidelines. Table 1 identifies the six categories of Academic Integrity breaches. If you have any questions about Academic Integrity issues related to your assessment tasks, please consult your lecturer or tutor for relevant referencing guidelines and support resources. Many of these resources can also be found through the Study Skills link on Blackboard. Academic Integrity breaches are a serious offence punishable by penalties that may range from deduction of marks, failure of the assessment task or unit involved, suspension of course enrolment, or cancellation of course enrolment. Table 1: Six categories of Academic Integrity breaches Plagiarism Reproducing the work of someone else without attribution. When a student submits their own work on multiple occasions this is known as self-plagiarism. Collusion Working with one or more other individuals to complete an assignment, in a way that is not authorised. Copying Reproducing and submitting the work of another student, with or without their knowledge. If a student fails to take reasonable precautions to prevent their own original work from being copied, this may also be considered an offence.
Answered Same DayOct 23, 2021HI5001

Answer To: Assessment Task – Tutorial Questions Unit Code: HI5001 – Mid Term/Block Mode Unit Name: Accounting...

Kiran answered on Oct 23 2021
137 Votes
Question 1 (Topic 4) - 10 marks
The unadjusted trial balance of Helena’s Hire Cars is shown below (ignore GST).
    Helena’s Hire Cars
Trial Balance
As at 30 June 2019
    Account
    Debit
    Credit
    Cash at bank
    18,140
    
    Accounts receivable
    21,340
    
    Office supplies
    640
    
    Prepaid advertising
    3,880
    
    Hire cars
    93,600
    
    Accumulated Depreciation -
hire cars
    
    39,400
    Accounts payable
    
    10,800
    Unearned hire fees
    
    2,260
    Helena, Capital
    
    68,340
    Helena, Drawings
    20,600
    
    Hire fees revenue
    
    98,700
    Wages expense
    50,620
    
    Fuel and oil expense
    10,680
    
    
    219,500
    219,500
Additional information
a. Petrol purchased on credit for $680 and used during the last week in June has not been paid for or recorded.
b. A physical count showed office supplies totalling $340 were still on hand at 30 June.
c. Depreciation for 1 year on the hire cars is $12,400.
d. Prepaid advertising has a balance of $600 at the end of the month.
e. The balance in the Unearned Hire Fees account includes $1,800 received in May for hire services completed in June.
Required:
Prepare a 10-column worksheet for the year ended 30 June 2019.
     
    Unadjusted trial balance
    Adjustments
    Adjusted trial balance
    Income statement
    Balance sheet
    Account Title
    Debit
    Credit
    Debit
    Credit
    Debit
    Credit
    Debit
    Credit
    Debit
    Credit
    Cash at Bank
    18,140
     
     
     
    18,140
     
     
     
    18,140
     
    Accounts Receivable
    21,340
     
     
     
    21,340
     
     
     
    21,340
     
    Office Supplies
    640
     
     
    300
    340
     
     
     
    340
     
    Prepaid advertising
    3,880
     
     
    3280
    600
     
     
     
    600
     
    Hire Cars
    93,600
     
     
     
    93,600
     
     
     
    93,600
     
    Accum. Depr. Hire Cars
     
    39,400
     
    12400
     
    51,800
     
     
     
    51,800
    Accounts Payable
     
    10,800
     
    680
     
    11,480
     
     
     
    11,480
    Unearned Hire Fees
     
    2,260
    1800
     
     
    460
     
     
     
    460
    Helena, Capital
     
    68,340
     
     
     
    68,340
     
     
     
    70,280
    Helena, Drawings
    20,600
     
     
     
    20,600
     
     
     
     
     
    Hire Fees Revenue
     
    98,700
     
    1800
     
    1,00,500
     
    1,00,500
     
     
    Wages Expense
    50,620
     
     
     
    50,620
     
    50,620
     
     
     
    Fuel and Oil Expense
    10,680
     
    680
     
    11,360
     
    11,360
     
     
     
     
    $219,500
    $219,500
     
     
     
     
    0
     
     
     
    Office Supplies Expense
     
     
    300
     
    300
     
    300
     
     
     
    Depreciation Expense - Hire car
     
     
    12400
     
    12,400
     
    12,400
     
     
     
    Advertising Expense
     
     
    3280
     
    3,280
     
    3,280
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
    18460
    18460
    2,32,580
    2,32,580
     
     
     
     
    Profit for the year
     
     
     
     
     
    22,540
     
     
     
     
     
     
     
     
    
    100500
    100500
    1,34,020
    1,34,020
     
     
     
     
     
    
     
     
Question 2 (Topic 7) - 9 marks
Below is information about Adam Ltd’s cash position for the month of May 2020.
1. The general ledger Cash at Bank account had a balance of $42,400 on 30 April.
2. The cash receipts journal showed total cash receipts of $585,408 for May.
3. The cash payments journal showed total cash payments of $530,148 for May.
4. The June bank statement reported a bank balance of $82,368 on 30 May.
5. Outstanding cheques at the end of May were: no. 221, $2896; no. 225, $308; and no. 230, $820.
6. Cash receipts of $20,180 for 31 May were not included in the May bank statement.
7. A dishonoured cheque written by a client Jim Ltd, $272
8. A credit for an electronic transfer from a customer of $1,288
9. Interest earned, $88
10. Account and transaction fees,...
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