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2108AFE Financial Accounting Practice Set Assessment

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2108AFE Financial Accounting

Practice Set Assessment - Trimester 2, 2019

 

 

Practice Set Assignment and Quiz

  1. Students are required to complete the practice set assessment item in their own time and submit the completed files by the due date and time (10%).

  2. Students will then complete a 10-question quiz based on information in the practice set (10%).

Due Date

  1. Practice Set File – To be uploaded to Learning@griffith by 2nd September by 9am.

  2. Online Quiz – Available from 2nd September at 9am until 6th September at 5pm.

Where to submit your assessable work

  1. The Practice Set File is to be uploaded via the submission point under the Assessment tab in L@G.

  2. The Online Quiz will be available under the Assessment tab in L@G.

Weighting

In total 20% of your final grade

 

Students are required to complete a practice set, which concentrates on the way financial information is recorded using a manual accounting system. This process begins with the collection and analysis of data and finishes by summarising that data into financial report. Topics 1 to 5 are covered (i.e. up to and including internal control, cash, and receivables).

 

The practice set assignment assesses students' understanding of the process involved in using a manual accounting system. After completing the practice set assignment, students are required to complete a 10-question online quiz based on the practice set document. This online quiz assesses your ability to understand the accounting process and identify and extract relevant accounting information.

 

Further details about the online quiz are as follows:

  • The quiz contains ten (10) questions worth one (1) mark each (10% in total)

  • There is a pool of questions used for this quiz, which are randomly allocated as each student begins the quiz. This system means that everyone will not get the same questions.

  • Two (2) attempts of the quiz are permitted.

  • The time allowed for the quiz is 60 minutes for each attempt.

  • The highest score of the two attempts will count towards your final grade in the course.

 

  • The practice set document must be uploaded to Learning@Griffith by 2nd September, 2019 at 9.00am.

 

  • The quiz will be available online from 2nd September at 9am until 6th September at 5pm.

 

 

 

 


 

Sipping Slurpees

 

Background and Facts

 

Adam Lucio is the owner of Sipping Slurpees, a specialty slurpee machine business he started two years ago. Adam sells 2 types of slurpee machines that he purchases from manufacturers. He operates the business himself and employs one person full-time as an assistant. Adam also provides specialty slurpee training services to private clients on how to make deliciously flavoured slurpees.

 

Sipping Slurpees is operated from a rented premise and the business pays rent quarterly in advance.

 

The business has a variety of clients with whom Adam has built up a strong relationship. He offers them terms of 2/10, net/30.

 

The business uses a FIFO perpetual inventory system (First In, First Out).

 

The business is registered for GST. Business Activity Statements (BAS) are submitted quarterly to the Australia Taxation Office on an accrual basis.

 

Currently, the business uses a manual accounting system but plans to test a Xero accounting system later in the year.

 

Accounting Information

 

Sipping Slurpees uses the following specialised and general journals to record business transactions.

 

  • Sales Journal - to record all invoices issued for sales of inventory

  • Purchases Journal - to record all credit purchases

  • Cash Receipts Journal - to record all cash received

  • Cash Payments Journal - to record all cash payments

  • General Journal - to record all other transactions

 

Sipping Slurpees uses a general ledger in the form of a 4-column running balance. An Accounts Receivable and Accounts Payable subsidiary ledger is also used in this format.

 

Financial Statements are prepared at the end of each month, and the accounts are closed off at the end of each month.

 

All necessary pro-formas are included and are to be used to complete the manual practice set for April. The assignment can be completed using the templates provided in Excel.

Chart of Accounts and Opening Balances 1st April

 

Account Number

Account Name

Debit

Credit

110

Cash at Bank

18,385

 

120

Accounts receivable

16,140

 

121

Allowance for Doubtful Debts

 

646

130

Prepaid Insurance

 

 

140

Prepaid Rent

3000

 

150

Office Supplies

950

 

160

Inventory

19,000

 

180

Delivery Van

 

 

181

Accumulated Depreciation – Delivery Van

 

 

200

Accounts Payable

 

16,995

220

Wages Payable

 

377

230

GST Clearing

 

1,045

250

Superannuation Payable

 

756

300

Capital

 

37,656

310

Drawings

 

 

350

Income Summary

 

 

410

Sales Revenue

 

 

412

Sales Discounts

 

 

415

Services Revenue

 

 

420

Interest Revenue

 

 

500

Cost of Sales

 

 

512

Bad debts expense

 

 

515

Bank Charges

 

 

521

Depreciation expense – Delivery Van

 

 

530

Electricity and Gas Expense

 

 

540

Insurance Expense

 

 

560

Office Supplies Expense

 

 

565

Rent Expense

 

 

570

Superannuation expense

 

 

590

Wages Expense

 

 

 

All account balances at 1st April are normal in nature.

Subsidiary Ledgers

 

Accounts Receivable Subsidiary Ledger

 

As at 1 April

Beverley’s Beverage Bar

4,000

J. Smith

12,140

 

16,140

 

Accounts Payable Subsidiary Ledger

 

As at 1 April

Fantastic Flavours Pty Ltd

6,765

Delicious Drinks Pty Ltd

10,230

 

16,995

 

Inventory on Hand

 

As at 1 April

 

Units on Hand

Cost per Unit

Total

Slurpee 3000

40

320

12,800

Super Slurpee

10

620

6,200

 

 

 

$19,000

 

 

 

 


 

APRIL TRANSACTIONS

 

The transactions for Sipping Slurpees during April are listed below.

Note: All amounts are GST-inclusive where applicable.

Credit sales are made on credit terms of 2/10, n/30

Round all amounts to the nearest dollar.

 

 

Date

Details

  1.  

April 1

Purchased a delivery van for $33,000 from Howard Autos on credit. Terms are n/60. Invoice number 15448.

  1.  

April 1

Paid insurance for 5 months in advance - $2,200 – chq 41.

  1.  

April 1

Paid Fantastic Flavours Pty Ltd in full for outstanding account balance at 1st April – no discounts applicable - chq 42.

  1.  

April 2

Sold 10 Slurpee 3000 machines for cash - $6,050.

  1.  

April 6

Purchased office supplies for cash - $330- chq 43.

  1.  

April 9

Received amount owed by Beverley’s Beverage Bar for March invoices less the discount.

  1.  

April 9

Paid fortnightly wages of $1,760 – chq 44.

($1,383 relates to April wages; $377 relates to the wages accrued for March )

 

  1.  

April 12

Received payment from J. Smith for part of the April balance - $2,140. There was no discount allowed.

  1.  

April 14

Purchased 15 Super Slurpee machines from Fantastic Flavours Pty Ltd for $10,395. Terms 3/10, n/30, Inv. 5430.

  1.  

April 15

Sold 17 Slurpee 3000 machines to Beverley’s Beverage Bar for $10,285, Inv. 4564.

  1.  

April 16

Invoiced Beverley’s Beverage Bar for slurpee training, Inv. 4565 for $3,300.

  1.  

April 16

The owner withdrew cash of $3,250 - chq 45.

  1.  

April 20

Paid the 1st April amount owing to Delicious Drinks Pty Ltd with chq 46. No discounts were applicable.

  1.  

April 22

Paid electricity and gas bill, $390 – chq 47.

  1.  

April 23

Paid fortnightly wages of $1,760 – chq 48.

  1.  

April 23

Paid superannuation contributions owing from March of $756 – chq 49.

  1.  

April 24

Received payment from Beverley’s Beverage Bar for invoice 4564, less the applicable discount.

  1.  

April 26

Sold to J. Smith, 10 Super Slurpee machines - $9,350, inv. 4566.

  1.  

April 26

Purchased 20 Slurpee 3000 slurpee machines from Delicious Drinks Pty Ltd for $7084. Terms 2/10, n/30, inv. 1389.

  1.  

April 30

Recorded bank charges of $35 and interest earned of $22.

 

Instructions for Completion of Practice Set

 

  1. Open all general ledger accounts by inserting the opening balances at 1 April as shown in the Chart of Accounts on page 3. For example, the balance of account 110 - Cash at Bank is $18,385 debit. Write “Opening Balance” in the “Details” column, and place $18,385 in the “Debit” balance column.

 

  1. Open all subsidiary ledger accounts for accounts receivable and accounts payable by inserting the opening balances as at 1 April as shown in the schedule of accounts receivable and accounts payable on page 4. Insert the opening inventory balances into the inventory cards.

 

Note: For the general ledger, accounts receivable subsidiary ledger and accounts payable subsidiary ledgers, all accounts have normal balances

 

  1. Record the transactions for April in the appropriate journals provided (narrations are not required).

 

  1. Post daily to the accounts receivable and accounts payable subsidiary ledgers.

Post daily from the general journal. All other amounts will be posted at the end of the month.

 

Note: For posting reference purposes, use the journal page names and numbers. For example, when posting from the sales journal the reference will be “SJ9”.

 

  1. Total all columns of the special journals. Post from the special journals to the general ledger.

 

  1. Prepare schedules of Accounts Receivable and Accounts Payable. Check that the total of the Schedule of Accounts Receivable equals the Accounts Receivable Control account in the general ledger and that the Schedule of Accounts Payable equals the Accounts Payable account in the general ledger.

 

  1. Use the worksheet provided to prepare an Unadjusted Trial Balance as at 30 April.

 

 

 

Check figures for this stage of the assignment are as follows:

 

  • Total of the Cash column in the Cash Receipts Journal - $22212

  • Cash at Bank account balance – Dr $13121

  • Inventory account balance – $20050.

  • GST Clearing account balance - Dr $1200

  • Unadjusted trial balance from worksheet - $115153

 

Note: If any of your figures do not match those above, you have made an error which you will need to find and correct.

 


 

  1. Using the following information record the necessary adjusting journal entries at 30 April in the general journal. Post these to the general ledger.

 

  1. Insurance

Adam paid 5 months insurance in advance on April 1.

 

  1. Depreciation

On April 1, the business purchased a delivery van. It has a useful life of 10 years and a residual value of $6,000. The vehicle is depreciated using the straight-line method. Record depreciation for one month.

 

  1. Accrued Wages

Wages owing at 30 April totalled $880.

 

  1. Superannuation

Superannuation contributions accrued for April total $871.

 

  1. Office Supplies

A stocktake of office supplies was performed on April 30. It was noted that $650 of supplies remain.

 

  1. Bad Debts

An assessment of bad and doubtful debts at April 30 showed an increase in the amount falling into this category. Adam has decided to increase the Allowance for Doubtful Debts to 6% of the accounts receivable balance at April 30.

 

  1. Rent

Rent of $4,500 is paid every quarter, and was last paid on the 1st of March.

 

  1. Record these adjustments in the adjustments column of the worksheet.

 

  1. Complete the worksheet.

 

  1. Record all closing entries in the general journal and post them to the general ledger.

 

  1. Prepare a Post-closing Trial Balance as at 30 April.

 

  1. Prepare the Income Statement (functional format), Statement of Changes in Equity, and Classified Balance Sheet.

 

 

 

 

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[Solved] 2108AFE Financial Accounting Practice Set Assessment

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2108AFE Financial Accounting Practice Set Assessment - Trimester 2, 2019 Practice Set Assignment and Quiz (1) Students are required to complete the practice set assessment item in their own time and submit the completed files by the due date and time (10%). (2) Students will then complete a 10-question quiz based on information in the practice set (10%). Due Date (1) Practice Set File – To be uploaded to Learning@griffith by 2nd September by 9am. (2) Online Quiz – Available from 2nd September at 9am until 6th September at 5pm. Where to submit your assessable work (1) The Practice Set File is to be uploaded via the submission point under the Assessment tab in L@G. (2) The Online Quiz will be available under the Assessment tab in L@G. Weighting In total 20% of your final grade Students are required to complete a practice set, which concentrates on the way financial information is recorded using a manual accounting system. This process begins with the collection and analysis of data and finishes by summarising that data into financial report. Topics 1 to 5 are covered (i.e. up to and including internal control, cash, and receivables). The practice set assignment assesses students' understanding of the process involved in using a manual accounting system. After completing the practice set assignment, students are required to complete a 10-question online quiz based on the practice set document. This online quiz assesses your ability to understand the accounting process and identify and extract relevant accounting information. Further details about the online quiz are as follows: • The quiz contains ten (10) questions worth one (1) mark each (10% in total) • There is a pool of questions used for this quiz, which are randomly allocated as each student begins the quiz. This system means that everyone will not get the same questions. • Two (2) attempts of the quiz are permitted. • The time allowed for the quiz is 60 minutes for each attempt. • The highest score of the two attempts will count towards your final grade in the course. • The practice set document must be uploaded to Learning@Griffith by 2nd September, 2019 at 9.00am. • The quiz will be available online from 2nd September at 9am until 6th September at 5pm. Sipping Slurpees Background and Facts Adam Lucio is the owner of Sipping Slurpees, a specialty slurpee machine business he started two years ago. Adam sells 2 types of slurpee machines that he purchases from manufacturers. He operates the business himself and employs one person full-time as an assistant. Adam also provides specialty slurpee training services to private clients on how to make deliciously flavoured slurpees. Sipping Slurpees is operated from a rented premise and the business pays rent quarterly in advance. The business has a v...
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2108AFE Financial Accounting Practice Set Assessment

2108AFE Financial Accounting Practice Set Assessment - Trimester 2, 2019 Practice Set Assignment and Quiz (1) Students are required to complete the practice set assessment item in their own time and submit the comp...

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