Task -
Task covers the application of conceptual and technical aspects of accounting and the preparation of business financial statements, the appraisal of the use of information technology including spreadsheet software, to demonstrate business communication skills including report writing, to contextualise and evaluate accounting information for decision making, to explain the importance of ethics in accounting.
In today's business environment we need verbal skills, writing skills, numeracy skills AND digital literacy skills. All of these skills are assessed throughout this subject. The early questions in this assignment are designed to assess your digital literacy in a business/accounting environment. It is suggested that you attempt the assignment questions week by week.
Presentation
Please read this in conjunction with the assignment requirements below.
- Single spacing and small margins are welcome to save paper.
- For any business report style questions a report structure is expected.
- Provide references throughout your assignment including page references to texts, articles and URL's of websites.
- APA is the referencing style used by the Faculty of Business. Acknowledge ALL sources used.
- At the end of your assignment include a complete Bibliography (Reference List) of resources actually used including the Internet, textbook, Interact resources, software help files and videos supporting this subject.
Spreadsheet requirements
1. For every question with a spreadsheet solution, paste in the Word document displaying row and column headings, the spreadsheet solutions normal view and a formula view of each spreadsheet,
Thus your Word file will provide a complete answer to every question.
The pasted formula view may need to have adjusted column widths to display formulas correctly. Use portrait orientation wherever possible. The separate Excel file will provide a clear demonstration of correct spreadsheet structures. You may need to break up your report/solution into separate images.
2. For good spreadsheet design it is very important that you have completely separate data entry and solution/report areas. A good spreadsheet solution format is to key in the question in a structure which allows the solution to be completely formula driven. There should be no data in the report/solution area.
3. Create all spreadsheets solutions as separate spreadsheets in one workbook. Name the tags at the bottom of the computer screen with the question number, and sub-section as appropriate. See examples in the Spreadsheet Advice PDF in Interact Resources.
4. Save your workbook with the cursor in cell A1 of the first spreadsheet.
5. Where appropriate, use the IF function to provide built in checks of balances, net income/net loss, favourable/unfavourable variances etc.
6. How can you display negative numbers in brackets? Google the question! Hint. Format / Cells / Number and select Custom. Enter this: #,##0;(#,##0);0.
7. We have provided spreadsheet examples to guide you in the Spreadsheet Advice PDF in Interact2 Resources - it is important that you study these examples. Also consider using the spreadsheet templates available with your text and other online spreadsheet resources but note that the text templates do not necessarily comply with the subject spreadsheet requirements.
Solutions to questions should vary in length according to the nature of the question. Solutions to exercises and problem questions should be in a similar form to that demonstrated in the text.
Q2-1 Naming cells in spreadsheets
In a spreadsheet why replace cell references with names? Paste a simple example of a formula using names rather than cell references. For example Sales less Expenses = Net Profit. Create your own example.
Q2-2 Negative numbers
How can negative numbers be displayed in brackets; in red? Paste a simple spreadsheet example.
Q2-3 Separation of data and report areas
Evaluate why an accountant should design spreadsheets with a completely separate data entry area and a separate report area? Paste a simple spreadsheet example.
Q2-4 IF functions
What is an 'IF' statement (function)? Provide a spreadsheeted accounting example.
Q2-5 Spreadsheet apps
Microsoft Excel is an example of spreadsheet software. List four further examples of spreadsheet software. Evaluate the importance of spreadsheet software to computer development. Hint. Google VisiCalc.
This group of questions above can be answered from any source including internet resources.
Q2-6 Perpetual versus Periodic systems
Explain the essential differences between perpetual and periodic inventory systems. Give examples of products/situations suited to each. (Watch the 3 videos on Inventory in Interact2 Resources).
Q2-7 Journal entries
Show the journal entries for perpetual inventory and periodic inventory systems for the purchase and sale of inventory. (Watch the 3 videos on Inventory in Interact2 Resources).
Q2-8 Worksheet and financial reports
Watch the Foot Worksheet movie in Interact2 resources. Download the relevant doc file also on Interact2 resources. This doc file has a template of the example below.
Examine the original data from the video. Create a new report/solution and change every number and enhance/improve the example to prepare a ten column spreadsheeted worksheet and the Financial Reports. Do not create journal entries or ledger accounts. Ensure your trial balance still balances after your data changes. The changes should be your personal choice. So your solution will be unique.
Follow the spreadsheet requirements including a separate data entry and report area and implement IF functions wherever appropriate. As usual, paste the normal view and the formula view.
Write a business report evaluating spreadsheets as a tool for accounting. You may wish to search the Internet with terms such as "advantages of spreadsheets". Use the following resource to help you prepare and format your report: https://bit.ly/FoBAcademic-Writing-Skills
Q2-9 Accounting principles
List and explain two accounting principles or concepts relevant to inventory. Give your own examples.
Q2-10 Inventory flow assumptions
List and explain the three major inventory costing (flow) methods.
Q2-11 Application of Inventory flow assumptions.
Create a well-designed spreadsheet to solve the following assuming periodic inventory. Make several of your own changes to the original data and create a new solution. Paste the two solutions and one formula view. Highlight your changes.
Q2-12 Thinking about internal control issues.
How is the separation of duties an example of internal control? Give two examples.
Q2-13 Bank Reconciliation
A. Write a brief introductory scenario and create your own bank reconciliation spreadsheet. You may choose to use a text example as a template but use your own numbers. Your spreadsheet will demonstrate all the usual spreadsheet requirements and will include an IF function.
B. Why do firms construct bank reconciliation statements on a regular basis?
Q2-14 Journalising accounts receivable entries.
Using your text as a resource, show the T accounts needed to show sales on credit, the collection of part of the amount owing, the write off of accounts receivable, the reinstatement of an amount written off and the collection in full of the amount owing. Create your own numbers. A spreadsheet is not required.
Q2-15 Estimating bad debts
Contrast two different methods of estimating bad debts. Create simple examples.
Q2-16 Evaluation of a firm's financial position
How can we use receivables to evaluate a firm's financial position?
Q2-17 Percentage of sales method
Spreadsheet required.
Following are some selected transactions of David Jones (DJ) during 2015 and 2016. Reporting date is 31 December. DJ uses the allowance method and makes adjusting and closing entries on reporting date.
2015
31 December - DJ estimated that bad debt expense for the year was 5% on credit sales of $1,500,00 and recorded that amount as expense.
31 December - Made the closing entry for bad debt expense.
10 January - DJ sold $8,000 of inventory to Mills & Brown (MB) on account
2016
20 June - DJ wrote off the receivable from MB after repeated efforts to collect.
25 July - DJ also failed to collect $13,000 receivables from BK and $10,000 from MM with no hope to collect them in future.
15 August - DJ received an apology letter for paying late and $8,000 from MB.
31 December - DJ estimated that bad debt expense for the year was 4% on credit sales of $2,000,000 and recorded that amount as expense.
31 December - Made the closing entry for bad debt expense.
Required:
1. Record the transactions in the general journal and post to the two ledger accounts.
2. Open general ledger T accounts for Allowance for doubtful debts and Bad debt expense. All accounts begin with a zero balance.
3. The 31 December 2016 balance of Accounts receivable is $500,000. Show how Accounts receivable would be reported on the balance sheet at that date.
Q2-18 Dishonour of a note receivable
Write a scenario which includes a credit sale, a conversion to a Note receivable, the dishonour of the note and subsequent delayed payment. Show the T accounts. Create your own simple numbers.
Q2-19 Account classification
What kind of account is Goodwill, Allowance for bad debts, Accumulated depreciation? Explain. Refer to the P A L E R mnemonic.
Q2-20 Work Integrated Assessment case study
Qantas Annual Report
Learning Objectives: The subject you are studying is vocational. It is designed with the workplace in mind. Work integrated assessment provides opportunities for students to link theory and skills learned in a subject to a real work context. Students can use these opportunities to develop and practice the professional and academic skills they learn about in a subject or through the online environment and then be assessed on their capabilities in these simulated authentic environments. Work integrated assessment allows students to simulate and situate their learning in an authentic workplace that encourages them to explore their knowledge and apply it to practice. Integrating real world, authentic assessment tasks allows students to learn about the particular environments and culture of their chosen professions, while at the same time absorbing and practicing the skills they need to succeed. Doing these tasks can help students develop skills that can help their employability.
Resources for this task include the 2015 Annual Report for Qantas.
Your friend Bob is studying architecture at another University and knows very little about accounting and annual reports. Bob's uncle gave him $30,000 recently to invest. Bob knows you have begun studying accounting and is considering buying Qantas shares. Bob has some questions for you. Present your answers concisely in a business report format. Bob's questions:
1. What is the Balanced Scorecard and how is this relevant to Qantas?
2. In summary, how much were the Executives paid in 2015?
3. What expertise does Todd Sampson bring to the Board of Directors?
4. Explain Revenue Seat Factor, EBITDA, Revenue received in advance and Retained Earnings.
5. Calculate and comment on the Working Capital ratio.
6. Create a two charts in Excel from any data in the Qantas report showing 3D columns and a pie chart. Paste the spreadsheet graphs in your assignment. Show the data area.
7. Summarise your advice to Bob re the investment decision.
Find the Qantas 2015 Annual Report on the web.
Attachment:- Accounting Assignment.rar