BSBFIA401 Prepare financial reports Assignment

Reference no: EM132807872

BSBFIA401 Prepare financial reports - Class Training International College

1. Explain the basic principles of double entry bookkeeping

2. Explain the three golden rules of accounting and how they apply to double entry accounting?

3. Explain the purpose of a general journal in accounting and give at least two examples of transactions that may be recorded in this journal.

4. Explain the purpose of a general ledger in accounting and give at least two examples of transactions that may be recorded in this journal.

5. Describe what is meant by "Fair Value" under AASB 116.

6. When working as an accountant you will spend many hours seated at your desk and at the computer, possibly doing lots of data entry. List three OHS issues you might need to consider, ensuring you are working safely and are not at risk of accident, injury or illness.

7. Research the Internet and find out how the Privacy Act 1988 will be changed in regard to storage of client data on cloud servers. What would an accounting firm need to do if it stores client data on an online/cloud accounting system?

8. Review the APES 110 Code of Ethics for Professional Accountants on the Internet. Explain what a Member of Business should do if they are not satisfied that the financial statements of an employing organisation are presented in line with Australian Accounting Standards.

9. Review the APES 110 Code of Ethics for Professional Accountants on the Internet. Explain how threats to compliance with the fundamental principles occur.

10. Explain the Australian Securities & Investments Commission's (ASIC's) role in approving codes of practice for the financial services sector. List their criteria for approval.

11. Explain whether financial services industry associations have to seek approval from ASIC regarding their codes of practice. Give examples of at least two financial services industry codes of practice.

12. List four types of laws that ASIC administers.

13. Explain two posting methods used in computerised accounting systems.

14. You need to prepare end of month financial reports. How would you make sure you have all the data you need?

15. Assume that you have been provided with the data for the end of financial month report. However, you have found some errors. What should you do in this situation and whom would you speak to?

16. Explain the difference between balance day adjustments required for accruals and balance day adjustments required for prepayments. Give an example of each.

17. Outline the reasons why an adjustment for depreciation expense is required at the end of each reporting period.

18. Distinguish between an allocation approach and a valuation approach to depreciation according to AASB1021 and AAS4.

19. Explain why it is important for estimates of the useful lives and expected residual values of depreciable non-current assets to be reviewed annually.

Assessment Task: Asset register project

Task summary
For this assessment task you are required to prepare journal entries according to standard practice to record the purchase of assets, depreciation expense, and accumulated depreciation.

Required
• Access to textbooks/other learning materials
• Computer with Microsoft Office and internet access
• Australian Accounting and Auditing Standards (either online or hard copy)
• Financial Policy and Procedures
• Asset Register Worksheet

Assessment Task 2 Instructions

Carefully read the following:

Andrew, the owner of Andrew's Slabs, purchased a bench planer (Asset No. 346) from Mullum Machinery on 1st July 2016 that cost $18,000. It is expected to produce 5,000 items during its life in the workshop. At the end of its working life, its scrap value will be $1,000.
The machine has been operating for two years. Its production in each of those years has been 800 and 1000 units respectively. It is being depreciated on the units of production method. Balance day is 30 June each year.

On the 1st of July 2016, Andrew also purchased a standing drill (Asset No. 348) from Danny's Drills. It cost $5,000 and will be used daily in the Workshop for a variety of purposes. The equipment has a useful life of 4 years and a residual value of $800. The straight-line deprecation method is used for this asset.

Complete the following activities in the Asset Register Worksheet:

1. Prepare journal entries according to standard practice to record the purchase of assets, depreciation expense and accumulated depreciation for the years ended 30 June 2016 and 2017. Show your workings for the depreciation calculation.

2. Prepare asset registers for the two items.

3. Prepare the correcting journal entries for the following:
a) Sold goods on credit to Lennox Furniture for $3,300 (including GST of $300) and incorrectly posted the item from the Credit Sales Journal by debiting Kingscliff Kitchens.
b) Timber worth $880 (including GST) purchased on credit from Shady Timber Mill was incorrectly debited to Purchases.
c) A cheque for $1,210 received for a kitchen bench slab was incorrectly posted from the cash receipts journal as a credit to the Sales account.
d) The bank column of the cash receipts journal was over added by $30, but the individual receipts were correctly entered and posted.

4. Calculate the following, taking into consideration the relevant procedures set out in the company's Financial Policy and Procedures:
At the end of March, there is an overdue debt of $550 (including GST) that has been outstanding for 92 days. The amount is owed by Domestic Bliss for furniture renovation.
The debt was transferred to a debt collection agency, but the debt was not paid.
Record these transactions in the table provided in the Worksheet.

Show the general ledger entries you would make to record this bad debt.

At the end of June, there is a debt of $990 that has been owed for 65 days. The amount is owed by Tables and Chairs. How would you show this on the end of year reports?

5. Send an email to your assessor.
The text of the email should be in grammatically correct English, written in an appropriate (polite, business-like) style.

It should introduce and summarise the contents of the attachment.

Assessment Task 3: Depreciation project

Task summary
For this assessment task you are required to prepare a number of journal and ledger entries in response to the purchase, depreciation, and eventual sale of a fixed asset.

Assessment Task 3 Instructions

Carefully read the following:

Andrew's Slabs bought a delivery truck on 1/7/2016. It cost $33,000 (including GST), and it was decided to depreciate it at 30%.

At the end of the financial year, on 30/06/2017, the balance of the accumulated depreciation of the truck was $15,300.

On 31/03/2018 Andrew traded it in on a new delivery truck. He received $8,800 for the trade in, and he paid the balance, $44,000, in cash. All figures included GST.

Andrew's Slabs uses the diminishing balance method.

Complete the following activities:

1. Create a depreciation Worksheet for 2017 and 2018. Show your calculations.

2. Write a General Journal entry on 30 June 2016 for depreciation.

3. Write Ledger accounts for Motor Vehicle, Accumulated Depreciation of Motor Vehicle and Depreciation Expense from 1/7/2016 to 30/6/2018.

4. Create an Income Statement and Balance Sheet extracts for the year ended 30 June 2018, showing the Depreciation Expense and the Motor Vehicle.

5. Write the journal entries to record the disposal of the old delivery truck on 31 March 2018, including calculation of gain or loss. Show your calculations.

6. Send an email to your assessor.
The text of the email should be in grammatically correct English, written in an appropriate (polite, business-like) style.
It should introduce and summarise the contents of the attachment.

Assessment Task 4: Balance day project

Task summary
For this assessment task you are required to prepare several General Journal entries for balance day adjustments and participate in a meeting to discuss these. You will then be asked to generate an adjusted Trial Balance, a Profit & Loss Statement, and a Balance Sheet.

Complete the following activities:

1. Record the following balance day adjustments in the general journal below.
Show your workings.
a. Depreciation of equipment 10% using the straight-line method
b. Depreciation of vehicles 12.5% using the diminishing balance method
c. Rates paid in advance $600
d. Salaries owing $3,500
e. Interest revenue earned but not received $1,300
f. Create an allowance for doubtful debts equal to 5% of accounts receivable.
g. Physical stocktake determined inventory at end 30 June 2017 was $18,800

Create a new Word document and insert your completed table into it.
Save it as Balance Day General Journal

2. Send an email to your assessor.
The text of the email should be in grammatically correct English, written in an appropriate (polite, business-like) style.

It should introduce and summarise the contents of the attachment and ask for a meeting to discuss these.

Your assessor will answer the email with a date and time for a meeting to discuss the entries.

Attach your general journal to the email.

3. Meet with Andrew (your assessor).
The objective of the meeting is to discuss, and update where necessary, the journal entries.

At the meeting you should carefully go through the journal entries, explaining each entry clearly and using appropriate industry terminology.

During the meeting, demonstrate effective communication skills including:
• Speaking clearly and concisely
• Using non-verbal communication to assist with understanding
• Asking questions to identify required information
• Responding to questions as required
• Using active listening techniques to confirm understanding

4. Create an Excel Workbook.
After the meeting, prepare each of the following as a separate Worksheet:
a. Adjusted trial balance at 30 June 2017.
b. Profit and loss statement for the year ending 30 June 2017
c. Balance sheet as at 30 June 2017.

Save the Workbook as Balance Day.

5. Send an email to your assessor.
The text of the email should be in grammatically correct English, written in an appropriate (polite, business-like) style.

It should introduce and summarise the contents of the attachment.

Depreciation Worksheet Assessor

1. Create a depreciation table for 2016 and 2017. Show your calculations.

Andrew's Slabs Delivery Truck
Asset Cost:
Less Residual value:
Depreciation Amount:
Depreciation method:
Depreciation Rate:
2. General Journal entry on 30 June 2016 for depreciation.
3. Ledger accounts for Motor Vehicle, Accumulated Depreciation of Motor Vehicle and Depreciation Expense from 1/7/2016 to 30/6/2017.
4. Income Statement and Balance Sheet extracts for the year ended 30 June 2018, showing the Depreciation Expense and the Motor Vehicle.
5. Write the journal entries to record the disposal of the old delivery truck on 31 March 2018, including calculation of gain or loss.Show your calculations.

Asset Register Worksheet

1. Prepare journal entries according to standard practice to record the purchase of assets, depreciation expense and accumulated depreciation for the years ended 30 June 2017 and 2018. Show your workings for the depreciation calculation.
2. Prepare asset registers for the two items below.
3. Prepare the correcting journal entries for the following:
• Sold goods on credit to Lennox Furniture for $3,300 (including GST of $300) and incorrectly posted the item from the Credit Sales Journal by debiting Kingscliff Kitchens.
• Timber worth $880 (including GST) purchased on credit from Shady Timber Mill was incorrectly debited to Purchases.
• A cheque for $1,210 received for a kitchen bench slab was incorrectly posted from the cash receipts journal as a credit to the Sales account.

At the end of June, there is a debt of $990 that has been owed for 65 days. The amount is owed by Tables and Chairs.

How would you show this on the end of year reports?

Attachment:- Depreciation Worksheet.rar

Reference no: EM132807872

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