Assessment Task – Tutorial Questions
Unit Code: HI5001
Unit Name: Accounting for Business Decisions
Assignment: Tutorial Questions 1
Due: 11:30pm 29th May 2020
Weighting: 25%
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:
Week 1
Evaluate the statement “Accounting is all about numbers.”. Using the definition of accounting to
justify your answer. (10 marks, maximum 250 words)
Week 2
Financial data for Safety Hire as of 30 June 2019 are:
Required:
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)
Week 3
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.
Required:
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)
Week 4
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.
Required:
Prepare the necessary adjusting entries at 30 June. (10 marks)
| Date | Accounts | Ref | Debit | Credit |
Week 5
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
| Adjusted trial balance | Income statement | Balance sheet | ||||
| Account | 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 | |||||
| Sundry Expenses | 9 200 | |||||
| $412 340 | $412 340 | |||||
| Profit for the period |
Required:
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)
Submission Directions:
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 Integrity
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.
Further Information:
For further information and additional learning resources, students should refer to their Discussion
Board for the unit.
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