- FLINDERS UNIVERSITY
FLINDERS BUSINESS SCHOOL
BUSN1011 Accounting for Managers
- ASSIGNMENT (Semester 2, 2015)
Due date is 9.00am Monday 28th September 2015.
This assignment must be submitted in .pdf format as one document. If you are using an MS Office application you should be able to go to 'print file' and print to a .pdf file format. You then save this file and then submit it through FLO.
If you are not certain how to create a .pdf document you will find help online through a google search. One converter can be found at http://www.pdfonline.com/convert-pdf/
You must only submit one document. Please clearly mark each question, and have all of one question’s answers together, followed by all of the other question’s answers.
Please read the assignment questions and expectations very carefully. There are two questions in the assignment.
You should note the following requirements relating to the assignments in this topic:
• Where appropriate, show detailed workings / calculations. In some cases, part-marks may be available for incorrect final answers (for example, this would apply when calculating depreciation, inventory etc).
• Presentation will be taken into account in determining your final grade for the assignment. Assignments must be typed, using a word and/or excel type of application. You must keep a copy of the final version of all assignments you submit. Remember, your assignment must be submitted in .pdf format in one document.
• Plagiarism and other forms of academic dishonesty are treated as serious offences by the University and are subject to harsh penalties, which may include expulsion from the University. Ensure that you have read and understood the University’s policy on academic dishonesty, as contained in the 2014 Student related Policies and Procedures Manual.
• Students are welcome to discuss the assignment concepts amongst themselves. However, it should be written on your own. There should be no sharing of files or completion of the assignment together. You need to be able to understand these concepts – understanding is often generated through discussion with other people – but it must be demonstrated by you alone.
• Students are welcome to ask suitable questions about the assignment on the Discussion board, where there should be only ONE topic running on this. I will not answer questions about the assignment by individual email – all students should be able to see all such discussion about the assignment.
• Extensions are automatically granted an extension for the number of working days shown on a sick certificate submitted with their assignment. Ensure you add this as the first document in your single .pdf file submission.
• No extensions are granted for other reasons. No extensions can be granted beyond the return date or Monday 12th October, whichever is the earlier.
Please see over for questions.
- BUSN1011 SEMESTER TWO 2015
Greg’s Golf Carts is a retail business that re-sells secondhand golf carts. The Statement of Financial Position as at 30th June 2015 is given below. Transactions for the month of July 2015 are also given.
1. Record the following transactions for July 2015 in a spreadsheet. Remember to add columns as necessary for additional assets, liabilities, owner’s equity, revenue and expense accounts that may be necessary.
2. Prepare an Income statement (Statement of Financial Performance) for the month ending 31 July 2015.
3. Prepare a Classified Balance Sheet (Statement of Financial Position) in the vertical format, as at 31 July 2015.
Greg’s Golf Carts
Statement of Financial Position
as at 30th June 2015
Cash 15 500
Inventory 8 000
Prepaid rent 2 000
Furniture & Fittings 45 000
Less: Accumulated Depreciation 5 000
Motor Vehicles 25 000
Less: Accumulated Depreciation 10 000
Total assets 92 500
EQUITY AND LIABILITIES
Accounts payable 5 300
Accrued expenses 1 200
Bank loan 6 500
Equity 46 500
Total Liabilities and Owners’ Equity
Transactions for July 2015
1 Some furniture originally costing $5,000 on the 1st July 2014 was sold $3,500 cash
2 Credit sale of two golf carts for $9,000. (Opening inventory is 6 golf carts bought at $2,000 each)
4 Greg goes to an auction and pays cash for 6 used golf carts, each costing $2,500
5 Greg pays $3,000 off his personal credit card
7 Credit sale of 5 golf carts for $23,000. Two of these were from his opening inventory and the other three were golf carts he’d bought at auction.
8 Paid $3,000 off his accounts payable
10 Bought two new computers for $4000 in total on credit
11 Cash sale of one golf cart for $5,000 from the carts bought at auction
13 Greg buys 2 golf carts on credit from a dealer for $3000 each
14 Received invoice for electricity of $500
17 Paid rent in advance for August, September and October of $6,000
18 Paid wages for his shop staff of $2,500
20 Paid $1,000 interest expense for the month and $1,000 off the loan principal
21 Greg sells 2 golf carts on credit for $9,000. One was bought at auction, the other was from the dealer.
22 Paid $500 for advertising
24 Received $6,000 of his Accounts Receivable
25 Paid cash $400 for monthly clean of premises
27 Greg crashes one of the carts from the opening inventory. It is no longer sellable
31 Greg receives an online order for 2 golf carts for $6,000. The customer has paid. The golf carts have not been delivered
At the end of the month, Greg reviews the accounts and makes these observations
• The Prepaid rent at the end of June was the prepayment of rent for July 2015.
• He owes his workers $800 in unpaid wages, which will be paid next week
• There are no other expenses that have not been recorded
• He reviews his accounts receivable, and notes that $1,000 invoice outstanding will not be paid and he thinks possibly another $3,000 might be uncollectible.
• Depreciation -:
Car: residual value zero. 50% reducing balance method
Furniture & fittings: residual value zero, straight line depreciation over 5 more years
Computer: residual value $400. Straight line depreciation over 3 years
Explain the effect on the profit, and on the Balance Sheet accounts for July 2015 if -:
1) Depreciation was not allocated for the month
2) Bad debts were not written-off when they occurred
3) An allowance for doubtful debts was not made
4) Unearned revenue was recognised as revenue in the period it was received
5) Expenses were incurred but not paid in cash nor an invoice received, and they were not accrued at the end of the period
6) Prepaid expenses were not appropriately accrued in the period
In total, what would be the effect on the financial statements
Question One: total 70%
Income Statement 10%
Balance Sheet 10%
Question 2: total 25%
Presentation: total 5%
- TOTAL 100%