Chief Examiner: Dr Sandip Dhole

Assessment marks:

This assignment accounts for 15% (part A 10% and part B 5%) of the total marks for the unit. The assignment must be completed and submitted individually.

Due Date:

Part A: 11:55 pm (AEST) 25th  August 2023

Part B: a 19-minute quiz to be completed between 4:30 pm – 11:55 pm (AEST) 1st  September 2023

Objective:

The  assignment's  objective  is  to  give  you  experience  in  recording  business  transactions and preparing and evaluating (where appropriate) financial reports for a service business.

Data Sheet:

The datasheet is available at the end of this document.

The datasheet is assigned to  students based on the last digit of their student ID number. E.g., if the last digit of your student ID number is 1 or 2, you should use the first datasheet. Using the wrong datasheet will result in a penalty of 1 mark.

Requirements:

Submission Details:

The Assignment consists of two parts. Part A must be submitted through Moodle. The link for the submission is under the section titled Assignment 1.

If you are unable to submit Part A, on time due to circumstances out of your control, you must apply for special consideration using the Special Consideration block on Moodle.

If you are unable to finish the quiz in Part B, you must apply for special consideration using the Special Consideration block on Moodle.

.    Students  who  submit  an  assessment  task after the due date will receive a late-submission penalty of 10 per cent of the available marks in that task. Tasks submitted more than seven days after the due date will receive a mark of zero for that task. The detailed university policy is here.

.    Assignment Part A must be submitted with the Faculty cover sheet attached. The cover sheet can be accessed in the Assignments section on Moodle.

.    If you are a student registered with Disability Support Services and require approved forms of support to complete this assignment, please notify the Chief Examiner at least one week before the due date.

PART A

1.   Using  the  information  in  the  datasheet,  please  analyse  the  transactions  and  balance-day adjustments  for  the  month’s  activities.  This  worksheet  (Microsoft  Excel)  is  available  on Moodle.

2.   Based on your worksheet, prepare the Income Statement, Balance Sheet, and statement of Cash Flows. Please refer to the formats in the prescribed textbook.

3.   Calculate the profit if the business uses cash accounting. Compare the profit from cash and accrual accounting for the business and give 3 reasons why the amounts are different. Explain which accounting method is better for the business in your datasheet.

You need to submit: Score

2        Datasheet 3

3        Worksheet                                                                                                                                 44

4        Income Statement for the month of June                                                                                    8

5        Balance Sheet at 1 June 5

6        Balance Sheet at 30 June                                                                                                              8

7        Classified Statement of Cash Flow for the month of June                                                        10

8        Analysis of difference between two profit numbers                                                                20

Total                                                                                                                                         100

Note:

· Use the Notes  column of the Worksheet to describe the type of expense and income – this will make your preparation of the Income Statement easier;

You may need to add the column headings of the accounting worksheet (i.e. the account names) and/or add columns/rows;

· You  must  show  and  explain  your  calculation  of  the  values  of  all  adjusting  entries. This can be provided either in the Worksheet or on separate pages;

· Formatting: ensure it fits well on an A4 page and is readable at Moodle.

· The  Statement  of Cash Flows must be classified, i.e. cash flows must be shown in the categories of operating, investing, and financing cash flows;

· You  must  use  the  Direct  Method  to  prepare  the  Statement  of  Cash  Flows.  Show  all calculations;

Round all monetary amounts to the nearest dollar;

· All non-current assets are depreciated using the straight-line method

PART B

Part B consists of a 10-minute quiz.  The  skills  and  knowledge  required  for  the  task  are relevant to those required  for Part A.

ASSIGNMENT 1: DATASHEET 1

Use this datasheet if the last digit of your Student ID number is 1 or 2.

Proprietor:              Ms Enid Blackwell

Business Name:      Your Dream Home Ltd

Business Type:       Real Estate

Comments:

-  Assume that this involves an existing business that was purchased by the new owner on 1 June 2022.

-  Use three separate accounts for revenue: rental commission, auction commission and advertisement placement fees. All revenues relate to the month of June.

-  Transactions involve cash unless specified as ‘Account’ .

-  Record payments for rent and insurance in prepaid accounts initially.

-  Information relevant to complete adjusting entries can be found in the top right section of this page.

-  The periods to which the rent and insurance apply commence on 1 June.