Reference no: EM132275663

Question 1

Preparation of accounting records - using spreadsheets

Flash Cleaning Services commenced operations on 1 July 2018. The company opened a cleaning business - providing cleaning services to local schools, preschools and childcare centres. During its first month of operations, the following transactions occurred:

Date	Transaction details
1 July 2018	Sally Flash invested $30,000 into the business, and the money was deposited into the bank account.  Sally Flash operates the business as a sole-trader.
1 July 2018	Flash Cleaning Services borrowed $20,000 from the bank.  The loan is interest-only, and interest is charged at 12% p.a.
1 July 2018	Flash Cleaning Services purchased a motor vehicle - a van that will be used for the cleaning business.  The motor vehicle cost $18,000, and Flash Cleaning Services paid for the vehicles from the bank account.  The motor vehicle has an estimated useful life of six years, and an estimated residual value of $3,000.
1 July 2018	Flash Cleaning Services paid $3,600 for insurance for the period 1 July 2018 - 30 June 2019.
1 July 2018	Flash Cleaning Services purchased cleaning equipment for $4,800, paid from the bank account.
9 July 2018	Flash Cleaning Services purchased supplies for $2,400, on credit terms.
13 July 2018	Flash Cleaning Services provided cleaning services to Rainbow Childcare Centre for $500, and the Centre deposited this money into Flash Cleaning Services' bank account.
20 July 2018	Flash Cleaning Services paid wages of $1,600 to employees, for services to 20 July.
25 July 2018	Flash Cleaning Services received $5,500 for cleaning services to be provided to ABC Public School between 25 July 2018 and 30 September 2018.
27 July 2018	Flash Cleaning Services paid $2,000 of the money owing to the supplier in relation the supplies purchased on 9 July 2018.
31 July 2018	Interest of $300 on the bank loan is charged, and it is paid from the bank account.
31 July 2018	Flash Cleaning Services paid advertising costs of $1,600 to the local newspaper, for July advertising.

Additional information as at 31 July 2018:

• Flash Cleaning Services owes wages of $2,200 to employees, for services to 31 July.
• Flash Cleaning Services has invoiced a number of customers for cleanings services provided during July, and needs to accrue service revenue of $12,600.
• Accrued expenses as at 31 July include: fuel ($190) and telephone ($100) for the month of July.
• Supplies on hand at 31 July 2018 amount to $2,100.
• Flash Cleaning Services provided cleaning services to ABC Public School on 28 July 2018, earning $500 of the $5,500 that was paid to Flash Cleaning Services on 25 July 2018.

Required:

1. Prepare the journal entries for the twelve transactions listed above that occurred during July 2018.
2. Prepare T-accounts and post all of the above journal entries to the T-accounts. Total all of the T-accounts to determine their balances at the end of the month.
3. Based on the balances in the T-accounts above, prepare the ‘Unadjusted Trial Balance' in an Excel spreadsheet.
4. Explain what the five types of adjusting entries are. Prepare all of the adjusting entries for Flash Cleaning Services as at 31 July 2018.
5. Using your ‘Unadjusted Trial Balance' and adjusting entries prepared above, prepare the ten column worksheet in Excel for the month ended 31 July 2018 (refer to page 167 - 171 of the prescribed text for an example of this worksheet). In the spreadsheet, you are required to have a ‘data' section separated from the ‘worksheet' section. Use formulas to generate all of the figures in the ‘worksheet' from the ‘data' section. Use the IF function for the ‘Profit' or ‘Loss' and also to check that the debit and credit columns balance.
6. Using the ten column worksheet prepared above as your ‘data', prepare the income statement, balance sheet, and statement of changes in equity in Excel. Use formulas to generate all of the figures in the financial statement reports.
7. Calculate and evaluate the business's current ratio and debt ratio. If Flash Cleaning Services repays the bank loan, how would these ratios change? Do you recommend that the bank loan is repaid? Why or why not.

Question 2

History of accounting - essay

Prepare an essay discussing the origins of double-entry bookkeeping. Explain why double-entry bookkeeping is so profoundly important in the world of accounting, and how it differs from earlier bookkeeping methods (about 1,000 words in total).

Question 3

ABC Learning Case Study

Watch the ABC Learning videos (these videos are available on YouTube and answer the following questions (about 1,000 words in total).

1. Discuss the reasons for ABC Learning's failure. Were there any warning signs in the company's financial reports that might have indicated that the company was in trouble?

2. Identify and discuss 3 ethical issues from this case study.

Rationale

This assessment task will assess the following learning outcome/s:

• be able to apply conceptual and technical aspects of accounting and prepare relevant business financial statements.
• be able to discuss the historical development of accounting.
• be able to appraise the use of information technology including spreadsheet software in accounting problem solving, and evaluate
• the Internet as a professional resource.
• be able to demonstrate relevant business communication skills including report writing.
• be able to contextualise and evaluate accounting information for decision making purposes.
• be able to explain the importance of ethics in accounting.

In today's business environment we need verbal skills, writing skills, numeracy skills AND digital literacy skills. All of these skills are assessed throughout this subject. The early questions in this assignment are designed to assess your digital literacy in a business/accounting environment.

This assignment is designed to give you an opportunity to demonstrate knowledge and skills in aspects of accounting and information systems including technical issues as well as concepts such as the accounting equations, cash and accrual accounting, current and non-current assets and liabilities, trial balance, worksheets, income statement, statement of changes in equity, balance sheets and the application of spreadsheet software to the presentation and solution of accounting problems.