Individual Assignment

UNIT DETAILS
UNIT NAME	FINANCIAL ACCOUNTING APPLICATIONS
UNIT NO.	700029		Year/Term	2021.2
ASSIGNMENT DETAILS
WEIGHTING	20%	Part 1 Due Date		Week 8
		Part 2 Due Date		Week 11
MAXIMUM MARKS	100
OUTCOME ASSESSED	3	NO. OF PAGES (including cover sheet)		12
INSTRUCTIONS TO STUDENTS
Part 1 of the assessment is due at 11.59pm on Friday 27th August 2021 (week 8)Part 2 of the assessment is due at 11.59pm on Friday 17th September 2021 (week 11) All submission must be uploaded to the Turnitin dropbox on vUWS.Detailed submission instructions are on pages 2-3 of this document

INDIVIDUAL ASSIGNMENT GUIDELINES

• This task relates to completing a set of accounts for a business and preparing the financial statements for one financial period (being one month).

• Based on the brief about the business in the next section on pages 4-6 and the accompanying business transactions for the company on pages 7-8, you will need to complete the set of accounts using the Excel file that is assigned to you according to the assignment instructions on pages 9-10.

• Please note, there are two versions of the Excel spreadsheet. The two versions are available on the unit vUWS site under the “Assignment” tab.

Your tutor will assign you a specific version of the Excel file to use during the tutorial class of Week 6. The assigned version will be communicated to you via the vUWS announcement and e-mail. You cannot randomly choose a version on your own.

• Students are required to upload a file copy of the completed Excel spreadsheet to vUWS via Turnitin only. The digital receipt generated by Turnitin and sent to the student’s email account should be retained as proof of submission. The dropbox for the assignment is located under the “Assignment” tab. No hard copy submissions will be accepted.

• The Excel file to be submitted should have 6 completed sheets for Part 1 (numbered 1 to 6) and 12 completed sheets (numbered 1 to 12) for Part 2. That is, the submission of Part 2 must include Part 1. The Excel sheet names and marks are as follows:

Part 1: (50 marks) – Due on vUWS by 11.59pm FRIDAY 27^th August 2021

1. Sales & Purchases Journal (SJ & PJ)                                   (10 marks)
   1. Cash Receipts Journal (CRJ)                                               (10 marks)
   1. Cash Payments Journal (CPJ)                                             (10 marks)
   1. Accounts Receivable Subsidiary Ledgers (ARSL)                  (5 marks)
   1. Accounts Payable Subsidiary Ledgers (APSL)                      (5 marks)
   1. Inventory Cards (IC)                                                            (10 marks)

Part 2: (50 marks) – Due on vUWS by 11.59pm FRIDAY 17^th September 2021

• General Journal (GJ)                                                           (10 marks)
  • General Ledger T Accounts (GL)                                         (10 marks)
  • Worksheet (WS)                                                                  (15 marks)
  • Trial Balance (TB)                                                               (5 marks)
  • Income Statement (IS)                                                         (5 marks)
  • Balance Sheet & Statement of Changes in Equity (BS & SOCIE) (5 marks)

• It is not necessary to include a cover page, table of contents or an executive summary.

• This assignment does not require a reference list.

• This is an individual assignment and students should work independently. Any evidence of collusion will be reviewed and may lead to the application of the Student Misconduct Rule.

• Please refer to the Learning Guide for details on Late Submissions and Special Considerations.

• The Individual Assignment Marking Guide (see page 11-12) will show you how your marks will be determined and provide a form of additional feedback.

FREEFOX PUBLISHING – BACKGROUND

1.1    History

Benjamin Franklin is the sole proprietor of Freefox Publishing – a GST-registered business.  Its operations are primarily focused on supplying retailers with select book titles, publishing independent and local authors.  It also provides editorial and marketing services.  While editing, layouts and design of the titles are completed in-house, the final drafts of manuscripts are sent to the supplier, Meta Printing Services for printing.  Further, under the firm’s contract with Meta Printing Services, printing costs per unit are fixed and reviewed every six months.

Benjamin prides himself on providing the highest quality customer service.  Since its formation, the firm has been relatively profitable.  Benjamin now has a full complement of staff looking after the various aspects of operations.  Currently, the firm uses a manual accounting system managed by the accountant, Walter Ralegh. An outline of their manual accounting system is shown below:

1.2    Accounting System

1.2.1   Journals and Ledgers

Walter Ralegh uses the following ledgers, special and general journals in maintaining all the accounting records:

Sales Journal                  Records all credit sales of inventory.

Purchases Journal          Records all credit purchases of inventory.

Cash Receipts Journal    Records all cash received by the firm, including cashsales, cash receipts from debtors and other sundry receipts.

Cash Payments Journal  Records all cash payments and cheques issued by the firm, including cash purchases, cash payments to creditors and other sundry payments.

General Journal               Records all transactions that cannot be recorded in the special journals listed above.

Subsidiary Legers           Maintained for accounts receivable and accounts payable, which are then reconciled against the relevant general ledger control accounts.

1.2.2   Schedule of Accounts Receivable as at 1 July 2020

(Refer to the Excel Information sheet)

1.2.3   Schedule of Accounts Payable as at 1 July 2020

(Refer to the Excel Information sheet)

1.2.4   Schedule of Inventory as at 1 July 2020, Selling Price and Cost Price

(Refer to the Excel Information sheet)

1.2.6   Schedule of Employees

(Refer to the Excel Information sheet)

1.2.7   Chart of Accounts

(Refer to the Excel Chart of Accounts (COA) sheet)

1.3              Accounting Policies

1.3.1   Freefox Publishing uses the accrual accounting method.

1.3.2   Freefox Publishing uses a perpetual inventory system.

1.3.3  Freefox Publishing has the following depreciation policies (Hint: these are balance day adjustment journals):

–   Buildings:  depreciated over 20 years using the straight-line method.  The cost of buildings is $750,000.  The estimated residual value of the buildings is $50,000.

–   Computer equipment:  depreciated at the rate of 30% per annum using the reducing balance method. No residual value.

–   Furniture and fixtures:  depreciated at the rate of 15% per annum using the reducing balance method. No residual value.

1.3.4   Employees work a normal five-day week (Monday to Friday) but are paid fortnightly. The total payroll amount is $21,000 per fortnight.  Employees are paid via direct debit to their bank account fortnightly on the 2^nd and 4^th Thursday of each month.  For this month it will be 9/7/2020 and 23/7/2020.

For example: employees’ fortnightly work starts on Monday 6/7/2020 and ends on Friday 17/7/2020. They are then paid on Thursday 23/7/2020.

Balance day adjustment for salaries payable are raised at the end of each month for days work but not paid.

1.3.5   Freefox Publishing receives monthly bills in arrears from its electricity supplier. That is, the bill will be received the following month after the usage. For example, the bill received in July relates to the electricity usage in June.

1.3.6   Interest on mortgage (GST is not applicable):

• The loan, secured by a mortgage on the land and buildings, is interest-only at the rate of 6.25% per annum, simple interest. The balance day adjustment for interest payable is raised at the end of each month and payable on the 8^th day of the following month.  The bank withdraws the interest automatically from the firm’s bank account via direct debit on the due date.

1.3.7  All transactions and calculations are to be rounded to the nearest whole dollar.

1.3.8  Freefox Publishing is a GST registered business. Where applicable all transactions will be plus GST. TheGST rate is 10%.

FREE FOX BUSINESS TRANSACTIONS FOR JULY

The following information relates to the operation of Freefox Publishing during July 2020.

2^nd      Sold goods for cash, plus GST. (Refer to the Excel Information sheet for the selling and cost prices):

Donne001	230 units
Donne002	280 units

2^nd      Received and paid the quarterly property rates from July to September 2020: $10,224 (Cheque # 601). (hint: GST is not applicable on rates and a balance day adjustment is required at the end of the month).

2^nd      Received from Milton Booksellers for goods sold on in June 2020: $33,528

3^rd      Paid Meta Printing Services account outstanding as at 1 July 2020 in full (cheque # 603).

4^th      Sold goods to Heyrick Book Company on credit, plus GST (invoice #701). (Refer to the Excel Information sheet for the selling and cost prices):

Marvell001	282 units
Marvell002	144 units
Southwell001	99 units

5^th      Purchased computer equipment from Godolphin Technology with cash for $12,120 plus GST (cheque #605).

8^th      Paid electricity invoice for June 2020: $2,375 plus GST (cheque #606)

9^th      Received from Heyrick Book Company in full for amount outstanding as at 1 July 2020.

9^th      Purchased inventory from Meta Printing Services on credit, plus GST (invoice #4212).  (Refer to the Excel Information sheet for the cost price):

Donne001	660 units
Donne002	400 units
Marvell001	500 units
Marvell002	300 units
Cartwright001	150 units
Southwell001	250 units
Vanghan001	150 units

10^th    Sold goods to Milton Booksellers on credit, plus GST (invoice #702). (Refer to the Excel Information sheet for the selling and cost prices):

Donne001	435 units
Donne002	311 units
Marvell001	317 units

10^th     Received from Leigh Books for goods sold in June 2020: $95,000

12^th    Benjamin withdrew $19,000 from the business account to purchase a car for his personal use (cheque #607)

15^th     Paid annual insurance premium of $70,380 plus GST, for the period from 1 July 2020 to 30 June 2021 (cheque #608). (hint: adjustment is also required at month end)

16^th     Received and paid invoice for advertising: $10,500 plus GST (cheque #609)

17^th     Invoiced Wilmont Book Store for the following order, plus GST (invoice #703). (Refer to the Excel Information sheet for the selling and cost prices)

Donne001	350 units
Marvell001	650 units
Southwell001	256 units
Vaughan001	216 units

17^th     Received part payment from Milton Booksellers for outstanding account: $67,500

18^th     Purchased inventory on credit from Meta Printing Services, plus GST (invoice #4228). (Refer to the Excel Information sheet for the cost price):

Donne001	300 units
Donne002	300 units
Marvell002	100 units
Cartwright001	100 units
Cartwright002	600 units
Southwell001	540 units
Vaughan001	540 units

19^th    Sold goods on credit, plus GST, to Norris Bookroom (invoice #704). (Refer to the Excel Information sheet for the selling and cost prices):

Donne002	300 units
Marvell002	200 units
Cartwright001	200 units

23^rd    Paid fixed monthly internet service charges in advance (for 1 August to 31 August 2020): $3,000 plus GST (cheque #610) (hint: you also need to do a general journal for the amount expensed in July, which was paid in advance in June)

24^th     Received outstanding amount from Heyrick Book Company for goods sold on 4 July.

25^th     Paid Meta Printing Services in full for inventory purchased on 9 July (cheque #611)

25^th     Received from Wilmont Book Store in full for the sale of goods made on 17^th July.

31^st     Supplies used for July: $6,500 (hint: this is a balance day adjustment journal)

31^st     Estimated electricity bill for the month of July 2020: $2,350 (hint: this is a balance day adjustment journal)

ASSIGNMENT REQUIREMENTS

You may need to insert/delete rows/columns in some of the worksheets for completeness, formatting, and presentation reasons. All Journals, General Ledger Accounts, Trial Balance, Worksheets and Financial Statements must have appropriate labels, headings, account name and number. Where applicable, examples have been provided for you. It is highly recommended that you use Excel formulae for your calculations.

Part 1 – Due on vUWS by 11.59pm FRIDAY 27^th August 2021

1. Record all cash and credit sales transactions in the proforma sales invoice (PSI) sheet. Record all cash and credit purchases transactions in the goods received advice (GRA) sheet. Ensure to include the totals.

Using the PSI and GRA, transfer all necessary credit transactions to the relevant sales and purchases journals (SJ & PJ). Ensure to include the totals, account numbers and posting references. The totals are used to transfer to the subsidiary ledgers (where relevant) and the general ledgers (GL) in part 2.

• Using the PSI, transfer the totals of all relevant cash sales transactions to the cash receipts journal (CRJ). Then record all other cash receipt transactions in the CRJ. Ensure to include the totals, account numbers and posting references. The totals are used to transfer to the subsidiary ledgers (where relevant) and the GL in part 2.

• Using the GRA, transfer the totals of all relevant cash purchase transactions to the cash payments journal (CPJ). Then record all other cash payment transactions in the CPJ. Ensure to include the totals, account numbers and posting references. The totals are used to transfer to the GL in part 2.

• Enter all opening balances for the relevant accounts receivable subsidiary ledgers (ARSL). Then post all relevant credit sales (SJ) and cash received (CRJ) from customers to the ARSL. Correctly balance off the ARSL accounts.

• Enter all opening balances for the relevant accounts payable subsidiary ledgers (APSL). Then post all relevant credit purchases (PJ) and cash paid (CPJ) to suppliers to the APSL. Correctly balance off the APSL accounts.

• Prepare the inventory cards using the perpetual inventory method (moving average). Ensure to only use the cost price and show the closing inventory balance and the total cost of goods sold (COGS). The balance/total are used to transfer to the GL in part 2.
  

Ensure to read your teacher’s feedback to Part 1 before submitting Part 2 of your assignment.

Part 2 – Due on vUWS by 11.59pm FRIDAY 17^th September 2021

• In the general journal, record all transactions that were not been recorded in the special journal (sales, purchases, cash receipts and cash payments journals from Part 1 above). These are specific transactions relating to the balance day adjustments (BDA). Narrations are not required. (Hint: do not record GST for the balance day adjustment). Note: the reversals for the previous month (June) BDA have been provided for you, and closing entries are not required.

• Use the Chart of Accounts (COA) and enter all relevant opening balances in the general ledger T accounts (GL). Post ALL totals from the special journals and general journals to the relevant GL. Correctly balance off the GL accounts.

• Using the GL, transfer the balances to the relevant accounts in worksheet (WS) under the heading ‘Adjusted Trial Balance’. Complete the adjusted trial balance totals and the remaining columns in the worksheet.

1. Using the completed worksheet, prepare the trial balance (TB) as at 31 July 2020.

1. Using the trial balance, prepare a classified Income Statement (IS) for the month ending 31 July 2020.

1. Using the trial balance, prepare a classified Balance Sheet (BS) as at 31 July 2020 and a Statement of Changes in Equity (SOCIE) for the month ending 31 July 2020.

INDIVIDUAL ASSIGNMENT MARKING GUIDE

Total Marks for Part 1 and Part 2: 100

Level  ⮊ Criteria ⮋	FAIL	PASS	CREDIT	DISTINCTION	HIGH DISTINCTION
MARKING GUIDE FOR PART 1 of 2: 50 Marks
Sales & Purchases Journals	Displays very limited understanding and application of the Sales and Purchases Journals.	Demonstrates acceptable understanding and application of the Sales and Purchases Journals.	Demonstrates sound understanding of the Sales and Purchases Journals. Applies understanding of these journals to practice in a structured fashion.	Demonstrates excellent understanding of the Sales and Purchases Journals. Understanding of these journals is developed and applied accurately.	Displays complete understanding of the Sales and Purchases Journals.  Able to portray comprehensive clarity in application.
(10 marks)	0 to less than 5	5 to less than 6.5	6.5 to less than 7.5	7.5 to less than 8.5	8.5 – 10
Cash Receipts & Cash Payments Journals	Displays very limited understanding and application of the Cash Receipts and Cash Payments Journals.	Demonstrates acceptable understanding and application of the Cash Receipts and Cash Payments Journals.	Demonstrates sound understanding of the Cash Receipts and Cash Payments Journals. Applies understanding of these journals to practice in a structured fashion.	Demonstrates excellent understanding of Cash Receipts and Cash Payments Journals. Understanding of these journals is developed and applied accurately.	Displays complete understanding of the Cash Receipts and Cash Payments Journals.  Able to portray comprehensive clarity in application.
(20 marks)	0 to less than 10	10 to less than 13	13 to less than 15	15 to less than 17	17 to 20
Accounts Receivable and Payable Subsidiary Ledgers	Displays very limited understanding and application of the Subsidiary Ledgers.	Demonstrates acceptable understanding and application of the Subsidiary Ledgers.	Demonstrates sound understanding of the Subsidiary Ledgers. Applies understanding of these Subsidiary Ledgers to practice in a structured fashion.	Demonstrates excellent understanding of the Subsidiary Ledgers. Understanding of these Subsidiary Ledgers is developed and applied accurately.	Displays complete understanding of the Subsidiary Ledgers.  Able to portray comprehensive clarity in application.
(10 marks)	0 to less than 5	5 to less than 6.5	6.5 to less than 7.5	7.5 to less than 8.5	8.5 to 10
Inventory Cards – Perpetual (moving average)	Displays very limited understanding and application of the Inventory Cards.	Demonstrates acceptable understanding and application of the Inventory Cards.	Demonstrates sound understanding of the Inventory Cards. Applies understanding of these Inventory Cards to practice in a structured fashion.	Demonstrates excellent understanding of the Inventory Cards. Understanding of these Inventory Cards is developed and applied accurately.	Displays complete understanding of the Inventory Cards.  Able to portray comprehensive clarity in application.
(10 marks)	0 to less than 5	5 to less than 6.5	6.5 to less than 7.5	7.5 to less than 8.5	8.5 to 10

Level  ⮊ Criteria ⮋	FAIL	PASS	CREDIT	DISTINCTION	HIGH DISTINCTION
MARKING GUIDE FOR PART 2 of 2: 50 Marks
General Journal (GJ) and Posting to General Ledger (GL)	Displays very limited understanding and application of the GJ and GL.	Demonstrates acceptable understanding and application of the GJ and GL.	Demonstrates sound understanding of the GJ and GL. Applies understanding of the GJ and GL to practice in a structured fashion.	Demonstrates excellent understanding of the GJ and GL. Understanding of the GJ and GL is developed and applied accurately.	Displays complete understanding of the GJ and GL.  Able to portray comprehensive clarity in application.
(20 marks)	0 to less than 10	10 to less than 13	13 to less than 15	15 to less than 17	17 to 20
Worksheet and Trial Balance (TB)	Displays very limited understanding and application of the Worksheet and Trial Balance.	Demonstrates acceptable understanding and application of the Worksheet and Trial Balance.	Demonstrates sound understanding of the Worksheet and TB. Applies understanding of the Worksheet and Trial Balance to practice in a structured fashion.	Demonstrates excellent understanding of the Worksheet and Trial Balance. Understanding of the Worksheet and Trial Balance is developed and applied accurately.	Displays complete understanding of Worksheet and Trial Balance. Able to portray comprehensive clarity in application.
(20 marks)	0 to less than 10	10 to less than 13	13 to less than 15	15 to less than 17	17 to 20
Income Statement	Displays very limited understanding and application of the Income Statement.	Demonstrates acceptable understanding and application of the Income Statement.	Demonstrates sound understanding of the Income Statement. Applies understanding of the Income Statement to practice in a structured fashion.	Demonstrates excellent understanding of Income Statement. Understanding of the Income Statement is developed and applied accurately.	Displays complete understanding of Income Statement. Able to portray comprehensive clarity in application.
(5 marks)	0 to less than 1	1 to less than 2	2 to less than 3	3 to less than 4	4 to 5
Balance Sheet & Statement of Changes in Owner’s Equity (SOCIE)	Displays very limited understanding and application of the Balance Sheet & SOCIE.	Demonstrates acceptable understanding and application of the Balance Sheet & SOCIE.	Demonstrates sound understanding of the BS & SOCE. Applies understanding of the Balance Sheet & SOCIE to practice in a structured fashion.	Demonstrates excellent understanding of the Balance Sheet & SOCIE. Understanding is developed and applied accurately.	Displays complete understanding of the Balance Sheet & SOCIE.  Able to portray comprehensive clarity in application.
(5 marks)	0 to less than 1	1 to less than 2	2 to less than 3	3 to less than 4	4 to 5

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