Reference no: EM133124877

BSBFIA401 Prepare financial reports - Sydney Metro College

Assessment Task 1 Instructions as provided to students
Provide answers to all of the questions below:

Question 1: Explain the basic principles of double entry bookkeeping

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

Question 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.

Question 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.

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

Question 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.

Question 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?

Question 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.

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

Question 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.

Question 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.

Question 12. List four types of laws that ASIC administers.

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

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

Question 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?

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

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

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

Question 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 2: 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.
This assessment is to be completed in the simulated work environment in the RTO.

Required
• Access to textbooks and 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

Complete the following activities:
Carefully read the following scenario.
For this assessment task, you are to assume you are responsible for Accounts at Andrew's Bespoke Hospitality Supplies. The company makes bespoke furniture for restaurants and cafes and is part of a larger hospitality supplies group.
Assume that your assessor is Andrew, the Manager of Andrew's Bespoke Hospitality Supplies, and any approvals you need to be granted as instructed in the Financial Policy and Procedure need to be approved in writing to your assessor's email address.
A bench planer (Asset No. 346) was purchased from Mullum Machinery on 1st July 2018 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 2018, 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 all of the activities below in the Asset Register Worksheet, making sure that you follow the procedures as outlined in the Financial Policy and Procedures provided to you in your Resources folder.

1. Journal entries.
Prepare journal entries according to standard practice to record the purchase of assets, depreciation expense and accumulated depreciation for the years ended 30 June 2019 and 2020. Show your workings for the depreciation calculation.

2. Asset registers.
Prepare asset registers for the two items.

3. Correcting journal entries.
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.
The bank column of the cash receipts journal was over added by $30, but the individual receipts were correctly entered and posted.

4. Calculations.
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. Draft an email.
Draft 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, seeking approval for the entries you have entered into the various journals to be approved as part of the General Ledger.
Attach your Asset Register Worksheet to the email.

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.
This assessment is to be completed in the simulated work environment in the RTO.

Complete the following activities:
Carefully read the following scenario.
Andrew's Bespoke Hospitality Supplies bought a delivery truck on 1/7/2018. It cost $33,000 (including GST), and it was decided to depreciate it at 30%.
At the end of the financial year, on 30/06/2019, the balance of the accumulated depreciation of the truck was $15,300.
On 31/03/2020 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 Bespoke Hospitality Supplies uses the diminishing balance method.
Complete the following activities, making sure that you follow the procedures as outlined in the Financial Policy and Procedures provided to you in your Resources folder.

1. Depreciation worksheet
Create a depreciation worksheet for 2019 and 2020. Show your calculations.

2. Journal entry.
Write a General Journal entry on 30 June 2018 for depreciation.

3. Ledge accounts.
Write Ledger accounts for Motor Vehicle, Accumulated Depreciation of Motor Vehicle and Depreciation Expense from 1/7/2018 to 30/6/2020.

4. Income statement and balance sheet.
Create an Income Statement and Balance Sheet extracts for the year ended 30 June 2020, showing the Depreciation Expense and the Motor Vehicle.

5. Journal entry.
Write the journal entries to record the disposal of the old delivery truck on 31 March 2020, including calculation of gain or loss. Show your calculations.
Submit your depreciation worksheet to your assessor.

Assessment Task 4: Balance day project

Task summary
For this assessment taskyou arerequired to prepareseveral 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.
This assessment is to be completed in the simulated work environment in the RTO.

Complete the following activities:
Carefully read the following.

The trial balance for Andrew's Bespoke Hospitality Supplies as at 30 June 2020 is as shown below.
Review the trial balance and then complete all of the activities making sure that you follow the procedures as outlined in the Financial Policy and Procedures provided to you in your Resources folder.

Trial Balance
Details	Debit $	Credit $
Cash at Bank	10,700
Accounts receivable	52,000
Inventory	20,000
Equipment	45,000
Accumulated depreciation on equipment		10,000
Vehicles	50,000
Accumulated depreciation motor vehicles		6,250
Land	27,500
Accounts payable		25,000
Loan		85,000
Capital		181,430
Sales revenue		120,000
Interest revenue		2,000
Cost of goods sold	86,250
Salaries expense	30,000
Rates expense	1,500
Stationery expense	800
Advertising expense	1,900
Interest expense	300
Motor Vehicle expense	780
Repairs Expense	2,500
Insurance Expense	450
Total	329,680	329,680

1. Record the following balance day adjustments in the general journal below and show your workings.
Depreciation of equipment 10% using the straight-line method
Depreciation of vehicles 12.5% using the diminishing balance method
Rates paid in advance $600
Salaries owing $3,500
Interest revenue earned but not received $1,300
Create an allowance for doubtful debts equal to 5% of accounts receivable.
Physical stocktake determined inventory at end 30 June 2020 was $18,800
General journal entries for balance day adjustments as at 30 June 2020

Adjustment	Accounts	Dr $	Cr $
a
b
c
d
e
f
g

Create a new Word document and insert your completed table into it.
Save it as Balance Day General Journal.
2. Draft an email.
Draft 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, along with a request for approval.
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. Participate in a meeting 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, you will need to 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.
4. Create an Excel Workbook
Create an Excel Workbook.
After the meeting, prepare each of the following as a separate Worksheet:
Adjusted trial balance at 30 June 2020.
Profit and loss statement for the year ending 30 June 2020.
Balance sheet as at 30 June 2020.
Save the Workbook as Balance Day.
Submit the Workbook to your assessor.

Attachment:- Prepare financial reports.rar