Assignment -
Part A - You are an accountant of GREENPLACE, a small business offering gardening and landscaping services. Before closing accounts for April 2018, you find three transactions that have not been recorded in the accounts as below:
- April 28, purchased supplies on credit $1200
- April 29, paid monthly office rent $3500
- April 30, received payment from a customer $5600
After recording the above transactions, below are the company's account balances at 30 April 2017:
|
Rent expense
|
$5,200
|
Accounts receivable
|
$35,500
|
|
Supplies expense
|
1,200
|
Cash
|
20,000
|
|
Long term Loan payable
|
45,000
|
Accumulated depreciation
|
25,200
|
|
Bartlett, Drawings
|
5,000
|
Accounts payable
|
25,800
|
|
Salary expense
|
18,600
|
Equipment
|
120,000
|
|
Salary payable
|
18,400
|
Advertising expense
|
7,500
|
|
Service revenue
|
65,000
|
Insurance expense
|
3,600
|
|
Supplies
|
4,500
|
Interest expense
|
3,880
|
|
Capital
|
29,780
|
Prepaid insurance
|
8,600
|
|
Depreciation expense
|
9,800
|
Unearned revenue
|
34,200
|
Requirements:
1. What is PALER? Based on PALER, identify the type of account for each account listed above.
2. Provide journal entries for transactions that have not been recorded.
3. From the account listed above, prepare the trial balance.
4. What are temporary and permanent accounts? From the account listed above, choose four permanent and four temporary accounts.
5. From the account listed above, choose two accounts with normal debit balances and two accounts with normal credit balances.
6. What are adjusting entries? Why do we have to do adjusting entries? Give five examples with journal entries.
7. Open T-accounts for all accounts listed above and post your examples of adjusting entries to the T-accounts. Provide your handwritten solution - scan or use your phone to copy and paste its image in your assignment. You can use a free scanning app such as Camscanner, OfficeLens, or Google Drive.
8. Using your T-accounts in the preceding question and Excel spreadsheet, prepare the ten column worksheet for the month ended 30 April. In the spreadsheet, you are required to have a data section separated from a report section. Use an IF function for Profit or Loss. Present your answers in both normal and formula views, showing columns and rows.
9. Using the spreadsheet, prepare three financial reports. Present your answers in both normal and formula views.
10. Describe the current ratio. Calculate the firm's current ratio, what does it tell you?
11. Evaluate the firm's debt ratio.
Part B - Watch the video below: Toshiba CEO quits over $1.2 billion accounting scandal.
Requirements: Use the video, reading resources in Interact2 and other resources on the internet that relate to the case to write a business report (about 600 words) addressing the issues below:
1. What is the case about?
2. What are the five Fundamental Principles of Ethics in accounting? Describe them.
3. In the case, which and how are codes of ethics violated?
You are required to use the format of a business report, and provide at least one reference from the readings in Interact2 and two references from the accounting resources on the Internet.
Presentation - You are required to provide a quality presentation the total assignment including referencing throughout and bibliography. Details are listed under the presentation and spreadsheet requirement sections.
Rationale - This assessment task will assess the following learning outcome/s:
- be able to apply conceptual and technical aspects of accounting and prepare relevant business financial statements.
- be able to appraise the use of information technology including spreadsheet software in accounting problem solving, and evaluate the Internet as a professional resource.
- be able to demonstrate relevant business communication skills including report writing.
- be able 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.
This assignment task is designed to give you an opportunity to demonstrate knowledge and skills in aspects of accounting and information systems including technical issues as well as concepts such as the accounting equations, cash and accrual accounting, current and non-current assets and liabilities, trial balance, worksheets, income statement, statement of owner's equity, balance sheets and the application of spreadsheet software to the presentation and solution of accounting problems.
In this assignment task, you are required to complete all questions and submit all necessary workings. A list of references is required at the end of your assignment as well as references throughout your assignment. The assignments in this subject are designed to assess your application of knowledge and skills.