Reference no: EM132445476 , Length: 19 pages

Question 1:

Imagine that you are a newly employed accountant working in public practice in an office in the city. You are to prepare a profit report, using the example in the book as a guideline for content and format, for Lilly's paintings from the following transactions.

Date	Transactions
2 August	Lilly sets up business with thirteen paintings each costing $500.
4 August	Lilly sells eight paintings for $1,100.
9 August	Lilly buys twenty paintings for $550 each. Freight costs $80
11 August	Lilly returns two of the paintings as they were marked
13 August	Lilly pays wages $4,300
16 August	Lilly pays rent $1,000
19 August	Lilly pays insurance $500
22 August	Lilly pays for repairs $500
27 August	Lilly pays for advertising $440
29 August	Lilly pays Boticelli supplies on account $344 (boyfriend's birthday)
30 August	Lilly sells 23 Paintings for $1,200 each
31 August	A stocktake revealed 0 paintings on hand.

a) Prepare a profit report for Lilly' paintings from the following transactions.

b) Identify statutory responsibilities to report the profit statement in the annual report for large companies and detail how they would comply?

c) Why would a requirement to regularly and comprehensively review all requirements for statutory and management reporting obligations exist including source documents?

d) How would you plan for the provision of reports? Include lead times and contingencies in your answer.

e) Provide examples of who the reports may be distributed to.

f) Why is it important to negotiate the responsibilities that are being accepted and those that are not?

g) Develop a number system for each account identified in this question using a Chart of Account system.

Question 2:

Consider a business in 20X8 with a number of assets. They are trying to determine the written down value of the assets and the depreciation expense. There was no personal aspect in the asset value (which means they are all able to be fully depreciated).

• Equipment worth $60,000 purchased on the 31st of December 20X6 which used the straight line method at a rate of 15% with a 10,000 scrap value.

• Office furniture worth $50,000 purchased on the 31st of December 20X7 which used the reducing balance method at a rate of 25% with no scrap value.

• Cash register worth $20,000 purchased on the 31st of December 20X8 which used the reducing balance method at a rate of 15% with a zero scrap value.

a) Develop an excel macro to calculate the requirements above.

b) What methods are there to calculate deprecation?

c) Are all expenses allowable deductions? Explain your answer using director fees and entertainment expenses as examples.

d) Is purchased goodwill a benefit or intangible asset. If it is deemed as an intangible assets can it be amortised and if so is it an allowable deduction?

Question 3:

Jim, Bob, Pete and Mark are all trained to take the cash register for a large tennis supplies business called Tennis Ace Ltd. The sales data is fed back to head office who consolidates all centres and prepares the monthly sales reports. They are all happy to work days or nights (Wednesday, Thursday and Friday) but cannot work 2 days in a row as they have coaching requirements. Pete and Mark do not see eye to eye and cannot work together. Jim and Bob are brothers and prefer to work together if possible. They often talk about business they are both Chief Executive Officers of companies that are reporting entities that trade together. The monthly sales included $20,000 racquet sales, $10,000 restringing, $50,000 coaching fees and $45,000 clothes and accessories. The returns amounted to $3,000.

a) Organize a schedule so that there is control over the cash register.

b) How would you report deadlines and data requirements to internal users unambiguously?

c) How would you present the sales data?

d) Is there any statutory responsibility for the recording of the sale data?

e) Is there any issue raised in the accounting standards given Jim and Bob are brothers and both Chief Executive Officers of companies that are reporting entities that trade together?

f) Why is it important to keep a shareholder register?
 
Question 4:

a) Visit the following website and describe the trick to remember debits and credits.

b) Explain the trick to a friend and document their response.

c) Visit the following website and answer the following questions. You are with a group of people with different cultural backgrounds to yourself, which hand would you use to pass a gift to the group leader? In which region or country is it rude to face the sole of your feet to a person? In Japan a colleague is about to wipe his nose with a handkerchief and put it back in his pocket but before doing so asks if you have any cultural advice for him. What advice would you give him?

d) Professional accounting bodies require their members to undertake Continuing Professional Development. How does this contribute to keeping up with Best Practice and procedure e.g. forecasting systems?

e) Brian Ltd. had four different industries including Whitegoods 25%, Real Estate 18%, Management Consulting 23% and Manufacturer 34%. Each industry has its own manger which reported directly to the CEO. Present a chart to display the Brian Ltd. sectors and a diagram to reflect the company's hierarchy.

f) Larry Hendricks is an accountant in a busy practice and he is feeling overwhelmed by his responsibilities. He is particularly stressed today as he suspects a client of fraud, has to see seven clients, prepare a presentation, research a new tax ruling and attend a meeting with his boss about strategy which Larry really doesn't think he has time for. What advice would you give Larry about organisational and time management?

g) You discover that it is not just Larry who is struggling with organisational skills. What communication strategies would you use to upskill the staff?

h) Create a client data base for yourself as required by So Sweet accounting organisational requirements containing eight names obtained from the telephone directory each starting with a different letter ensuring they are not arranged in a logical order. Also add the name of a friend or member of the family and find out from them what advice they would require. Once you have completed your list ensure the data base has appropriate headings before copying the data base. Sort the copied data base into alphabetical order. Note:you need a pre-sorted and post-sorted version of the data base.

Question 5:

Obtain the most recent annual report of the company that you work for if it is listed on the Australian Stock Exchange. If this is not relevant choose another company listed on the Australian Stock Exchange.

a) Find a recent share price and comment on the share price and how it relates to the equity part of the balance sheet.

b) Comment on the valuation of any intangible assets listed.

c) Analyse the cash flow statement presented.

d) Comment on the auditor's report. Does it take into account any of the government's financial policies and/or the secretary's financial management instructions?

e) Are there any liabilities reported that are not debts in the everyday sense? (Hint: look at the footnotes). How do they relate to the short-term and long-term financing options that have been reported?

f) Do you feel that the information in the annual report is relevant and a faithful representation of reality? Do you believe the information is timely, verifiable and understandable? Explain in full with examples from your annual report.

g) Access an accounting standard from the internet and interpret the importance of the standard and why being able to access the standard using the internet is important.

h) How are differences in communicating in different cultures handled? How are active listening and questioning techniques useful in determining and confirming objectives in this context?

i) How are leases reported in financial statements