Assessment Task – Tutorial Questions
Unit Code: HI5001
Unit Name: Accounting for Business Decisions
Assignment: Tutorial Questions 1
Due: 11:30pm 29th May 2020
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:
1. Analyze how various transactions will affect the accounting equation, the balance sheet, and the income statement and communicate this to a range of stakeholders;
2. Apply, analyze, synthesize and evaluate information from multiple sources to make decisions about the financial performance of entities including assets, liabilities, owner’s equity, revenue and expenses;
3. Employ information technologies to analyze transaction data and financial statement to facilitate data-driven decision-making;
4. Assess the impact of taxation and other liabilities, relevant legislation and industry codes of practice on business and define management strategies.
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 weeks 1 to 5 inclusive and submit these answers in a single document.
The questions to be answered are:
Evaluate the statement “Accounting is all about numbers.”. Using the definition of accounting to justify your answer. (10 marks, maximum 250 words)
Financial data for Safety Hire as of 30 June 2019 are:
Prepare an income statement for the month of June and a balance sheet in account format for Safety Hire as at 30 June 2019. (10 marks)
On 1 July 2018 Nicole Andreou opened a beauty parlour. The following transactions occurred during the first month of operations (ignore GST).
Use the following account titles and numbers: Cash at Bank, 100; Accounts Receivable, 101;
Supplies, 102; Equipment, 103; Loan Payable, 200; Nicole Andreou, Capital, 300; Nicole Andreou, Drawings, 301; Revenue, 400; Rent Expense, 500; Advertising Expense, 501; Insurance Expense, 502; Telephone Expense, 503.
a) Prepare the general journal entries to record the above transactions. (6.25 marks)
b) Post the entries from the general journal to the general ledger accounts (running balance format) and enter the posting references in the general journal. (2.75 marks)
c) Prepare a trial balance as at 31 July 2018. (1 mark)
The financial year for Drip Dry Cleaning Services ends on 30 June. Using the following information, make the necessary adjusting entries at year-end. Ignore GST. Ignore Narration.
1. On 15 February, Danielle Drip’s business borrowed $16 000 from Northern Bank at 8% interest. The principal and interest are payable on 15 August.
2. Drip Dry Cleaning Services purchased a 1-year insurance policy on 1 March of the current year for $660. A 3-year policy was purchased on 1 November of the previous year for $2700. Both purchases were recorded by debiting Prepaid Insurance.
3. The business has two part-time employees who each earn $220 a day. They both worked the last 3 days in June for which they have not yet been paid.
4. On 1 June, the Highup Hotel paid the business $2100 in advance for doing their dry cleaning for the next 3 months. This was recorded by a credit to Unearned Dry Cleaning Revenue.
5. The supplies account had a $280 debit balance on 1 July. Supplies of $1560 were purchased during the year and $190 of supplies are on hand as at 30 June.
Prepare the necessary adjusting entries at 30 June. (10 marks)
Date Accounts Ref Debit Credit
The adjusted trial balance columns in the worksheet of Elliot Painting Services are as follows.
ELLIOT PAINTING SERVICES
Worksheet (Partial) for the year ended 30 June 2019
Account Adjusted trial balance Income statement Balance sheet
Debit Credit Debit Credit Debit Credit
Cash at Bank 1 230
Accounts Receivable 75 600
Prepaid Rent 1 800
Office Supplies 8 320
Equipment 160 000
Accum. Depr. Equip’t 25 000
Accounts Payable 54 000
Salaries Payable 8 760
Unearned Revenue 3 430
F. Elliot, Capital 101 500
F. Elliot, Drawings 22 000
Painting Revenue 219 650
Salaries Expense 106 000
Rent Expense 6 050
Depreciation Expense 8 040
Telephone Expense 4 020
Office Supplies Used 10 080
Profit for the period 9 200
a) Complete the worksheet. (6 marks)
b) Prepare the closing entries necessary at 30 June 2019, assuming that this date is the end of the entity’s accounting period. (4 marks)
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 honesty is highly valued at Holmes Institute. Students must always submit work that represents their original words or ideas. If any words or ideas used in a class posting or assignment submission do not represent the student’s original words or ideas, the student must cite all relevant sources and make clear the extent to which such sources were used. Written assignments that include material similar to course reading materials or other sources should include a citation including source, author, and page number.
In addition, written assignments that are similar or identical to those of another student in the class is also a violation of the Holmes Institute’s Academic Conduct and Integrity Policy. The consequence for a violation of this policy can incur a range of penalties varying from a 50% penalty through to suspension of enrolment. The penalty would be dependent on the extent of academic misconduct and the student’s history of academic misconduct issues.
All assessments will be automatically submitted to SelfAssign to assess their originality.
For further information and additional learning resources, students should refer to their Discussion Board for the unit.