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Assessment Task – Tutorial Questions Assignment 2
Unit Code: HC1010
Unit Name: Accounting for Business
Assignment: Tutorial Questions Assignment 2
Due: 11:30pm, Friday 26th June, 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:
• Obtain and contextualise business information for business accounting to explain and
apply different concepts of costs to business decisions;
• Apply, analyse, synthesise and evaluate information from multiple sources to make
decisions about the financial performance of entities including assets, liabilities,
owner’s equity, revenue and expenses;
• Prepare, analyse, and interpret transaction data and financial statements for data-
driven decision- making;
• Evaluate the complex concepts of accounting such as roles and purposes of accounting
and preparation of worksheets; and
• Communicate accounting information in writing professionally.
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 6 to 10 inclusive
and submit these answers in a single document.
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The questions to be answered are:
Week 6 – Question 1 (10 marks)
(Note this question is Q3 in the Pre-recorded Tutorial Questions)
The cash flows shown below were extracted from the accounts of Jason Taylor, a music shop owner.
Repayment of loan $390 000
Sale of property XXXXXXXXXX
Interest received XXXXXXXXXX
Payment to employees XXXXXXXXXX
Receipts from customers XXXXXXXXXX
Expenses paid XXXXXXXXXX
Computer equipment purchase XXXXXXXXXX
GST paid XXXXXXXXXX
Payments to suppliers XXXXXXXXXX
Income taxes paid XXXXXXXXXX
Beginning cash balance
7 800
A. Prepare a statement of cash flows using the direct method. (5 marks)
B. Outline some cash flow warning signals. (5 marks)
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Week 7 – Question 2 (10 marks)
(Note this question is Q3 in the Pre-recorded Tutorial Questions)
Selected information for two companies competing in the catering industry is presented in the table
elow:
Account Name Lawson Dawson
Cu
ent assets $110500 $167900
Non-cu
ent assets $250000 $299000
Cu
ent Liabilities $58600 $23500
Non-cu
ent Liabilities $89700 $145000
Equity $212200 $298400
Profit $75000 $53000
Required:
A. Calculate the following ratios for Lawson and Dawson:
i. Cu
ent ratio XXXXXXXXXXmarks)
ii. Return on Assets (ROA). (2 marks)
iii. Return on Equity (ROE XXXXXXXXXXmarks)
B. From your calculations in part (A), explain which entity is in a more favourable position.
(2 marks)
C. Discuss two limitations of ratio analysis as a fundamental analysis tool. (2 marks)
Week 8 – Question 3 (10 marks)
(Note this question is Q3 in the Pre-recorded Tutorial Questions)
King Sports owned by Tim Lane, sells sports equipment to schools and sporting clubs in Victoria.
The following balances were reported in the Balance Sheet as at 30 June 2019.
Account Name Balance ($)
Cash at bank 39 400
Accounts receivable XXXXXXXXXX
Accounts payable XXXXXXXXXX
Capital – Tim Lane XXXXXXXXXX
(Note this question continues over the page)
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Week 8 – Question 3 (10 marks) (Cont’d)
Transactions for July 2019 were as follows:
July 2 Received $2800 from accounts receivable
3 Paid $1000 of accounts payable
4 Paid rent for July $700
5 Sent invoice to customer $5600
7 Purchased office equipment for cash $2000
9 Recorded cash sales $800
10 Recorded credit sales $1500
14 Purchased office supplies for cash $330
23 Recorded cash sales $2000
31 Cash drawing by Tim Lane $800
Required:
a. Prepare worksheet entries for the business transactions for the month ended 31 July 2019.
(7 marks)
. Describe how an accounting worksheet assists in the preparation of the statement of profit or loss
and the balance sheet. (3 marks)
Week 9 – Question 4 (10 marks)
(Note this question is Q3 in the Pre-recorded Tutorial Questions)
King Sports owned by Tim Lane, sells sports equipment to schools and sporting clubs in Victoria.
The following balances were reported in the Balance Sheet as at 30 June 2019;
Account Name Balance ($)
Cash at bank 39 400
Accounts receivable XXXXXXXXXX
Accounts payable XXXXXXXXXX
Capital – Tim Lane XXXXXXXXXX
(Note this question continues over the page)
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Week 9 – Question 4 (10 marks) (Cont’d)
(Note this question is Q3 in the Pre-recorded Tutorial Questions)
July transactions for 2019 were as follows:
July 2 Received $2800 from accounts receivable
3 Paid $1000 of accounts payable
4 Paid rent for July $700
5 Sent invoice to customer $5600
7 Purchased office equipment for cash $2000
9 Recorded cash sales $800
10 Recorded credit sales $1500
14 Purchased office supplies for cash $330
23 Recorded cash sales $2000
31 Cash drawing by Tim Lane $800
Required:
a. Record Journal entries for the business transactions for the month ended 31 July XXXXXXXXXXmarks)
. Record the transactions in the following ledger accounts for King Sports for the month ended
31 July 2019.
(i) Cash account. (1/2 mark)
(ii) Accounts receivable. (1/2 mark)
(iii) Office equipment. (1/2 mark)
(iv) Rent expense. (1/2 mark)
(v) Office supplies expense. (1/2 mark)
(vi) Drawings account. (1/2 mark)
(vii) Tim Lane’s capital account. (1/2 mark)
(viii) Sales revenue account. (1/2 mark)
c. Prepare a trial balance at 31 July XXXXXXXXXXmarks)
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Week 10 – Question 5 (10 marks)
(Note this question is Q3 in the Pre-recorded Tutorial Questions)
Mel Gi
eson has recently graduated from a business school and has joined the family business as an
accountant. At the first management meeting with production, marketing and sales, a great deal of
time was spent discussing the unit cost of products.
Required:
What kinds of decisions can managers make using the unit cost information?
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 co
ect one.
Academic Integrity
Academic honesty is highly valued at Holmes Institute. Students must always submit work that
epresents 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 Safe-Assign to assess their originality.
Further Information
For further information and additional learning resources, students should refer to their Discussion
Board for the unit.