2022留学essay悉尼科技大学留学生会计作业写作需求
THEACCOUNTING GROUPUTS BUSINESS SCHOOLUNIVERSITY OF TECHNOLOGY, SYDNEY22107 ACCOUNTING FOR BUSINESS DECISIONS ASPRING SEMESTER 2011PRE-RELEASED MID-SEMESTER EXAMINATION PAPERPre-released in Teaching Week 5 (week commencing 29/08/2011) in Lectures and on UTSOnlineThe examination will be held during the Mid-Semester Study Break. Students will be given ONE HOUR to complete the examination. Please note that the exam is closed book.TWO questions will be selected for students to answer in the exam by the Subject Coordinator. One question will be from Part A (Theory – Questions 1-6) and the other question will be from Part B (Practical – Questions 7-12) of the examination. Both questions are of equal value – plan to devote equal time to the theory question and to the practical question.Students are permitted to bring writing implements and a non-data storage/retrieval calculator to the exam. No notes, textbooks, notebooks, laptops, personal organisers, pagers, mobile phones, electronic, transmitting or receiving equipment will be permitted.The examination requires the knowledge of material covered in lectures 1-7 and tutorials 1-6. If you are not sure of the terms used in the questions, please look in the Glossary of your textbook. Students should be cautious of material placed on UTSOnline by fellow students. Any information to be officially provided will be put on the “Announcement” page. Separate discussion boards for each mid-semester exam question will be setup on UTSOnline. Students are to use the correct folder when posting questions or comments and make sure they read the previous postings before asking a question.The mid-semester exam is compulsory for all students regardless of the assessment option chosen.Students must provide details of their tutor’s name and tutorial time on the front cover of the exam answer booklet. All students should make sure that they are aware of these details on the day of the exam. Delays in returning exams will occur if these details are not completed correctly.Any questions of clarification should be directed to discussion boards on UTSOnline or in lectures. Only questions about student personal matters should be emailed directly to the Lecturer in Charge, Fiona Ball.Good Luck!Carin, Gabriel, Naibuka, Hannah, Thulaisi, Tirukumar, Fiona and Jonathan1PART A – THEORYQuestion 1There are four main financial statements: Statement of Comprehensive Income, Statement of Changes in Equity, Statement of Financial Position, and Statement of Cash Flows. What information do these statements communicate and how are they different from one another? Are these statements connected to one another? If they are connected, please discuss how this connection exists, and if not, discuss why it is not important for these statements to be connected. In your response, please also discuss the issues that may arise from relying on the numbers reported in these statements.#p#分页标题#e#Question 2In the 2005 Journal of Business Ethics article (set as one of your readings this semester and available on UTSOnline ‘Course Documents’), “Creative Accounting: Some Ethical Issues of Marco and Micro Manipulation” Gowthorpe and Amat discuss the issue of earnings management. What is the meaning of ‘earnings management’? What is the stand of the authors on ‘earnings management’? Why do you think the authors take that stance against earnings management? In your discussion, explain what earnings management is and why managers are motivated to manage earnings? Also include in your discussion the impact of using financial reports that have been subject to earnings management.Question 3The Statement of Cash flows reports a business’s activities under three categories. What are these categories and is it useful to present cash flows in these 3 categories? Do these categories apply to other financial statements? Why is there a need for the indirect method of preparing the cash flows? Is this done for the all activities or just one? Why is this the case? Discuss in detail with examples.Question 4Please explain why management would in some cases have incentives to produce financial statements which show a better, and in other cases, worse financial performance and position than may be that shown by an independent objective accountant? Would a ‘better’ or ‘worse’ financial result always be because of fraud or financial misstatement, if not explain the concept of ‘earnings management’? What is the role of auditors in the financial reporting process?Question 5In accounting for inventory why must the accountant follow the inventory system the business has in place (the perpetual system or the periodic system)? How is the accounting for the perpetual system different to accounting for the periodic system? In contrast the accountant can choose the costing systems (First-In-First-Out (FIFO), Last-In-First-Out (LIFO), or Weighted Average) if the organisation is selling goods that it is difficult to determine the purchase time and price of the goods. How can this be the case, especially if the product is milk and the business attempts to have customers buy the oldest (closest to use by date) first? Comment on the ethics of choosing an inventory costing system because it allows management to report a higher or lower profit as they desire.Question 6In the 2001 Accounting Review journal article (set as one of your readings this semester and available on UTSOnline ‘Course Documents’), "Accruals and the prediction of future cash flows" Barth, Cram & Nelson examine the role of accruals in ‘smoothing income’ and how future cash flows might be predicted. What are accruals? Why would a user of financial statements want to predict cash flows? Comment on the main finding/s of the article.2PART B – PRACTICALQuestion 7#p#分页标题#e#澳大利亚悉尼科技大学留学生作业会计Naibuka owns and operates a consulting business. On June 1, 2011 his ledger showed the following account balances. Ignore the effects of GST for this question.CashPrepaid RentSuppliesAccounts ReceivableInterest ReceivableLandSalaries ExpenseAdvertising Expense55,0007,00013,00025,000—-100,000Accounts PayableMortgageContributed equityRetained earningsConsulting Service RevenueElectricity ExpenseSupplies ExpenseInterest Revenue8,0006,00056,00030,000—-100,000The following transactions occurred in June:1. Naibuka contributed $30,000 Cash and a plot of Land work $170,000 to the business.2. Collected $10,000 on account (accounts receivable) from a customer.3. Billed customer for consulting services on account $15,000.4. Carried out consulting services for a customer, receiving cash $8,000.5. Purchased supplies on credit $5,000.6. Earned $1,500 interest, which will be collected in July.7. Paid $3,500 to creditor (accounts payable) on account.8. Paid June’s salaries $6,000.9. Received an invoice for June’s advertising expense to be paid in August $9,600.10. Sold supplies that cost $500 to a friend at a cost of $500.11. Naibuka withdrew $200,000 from the business for personal use.12. Received electricity bill for the electricity used in June $4,400 and paid it.13. Purchased land $250,000 by arranging a mortgage with the bank14. Recorded rent expense for June is $3,500 (note – on June 1, two months’ rent of $7,000 was prepaid).15. Counted supplies on hand June 30, $1,500 remained (remember transactions ‘5’ and ‘10’ above as well as the opening balance).RequiredA. Record the above transactions in a general journal using only the ledger accounts given.B. Post to the ledger, (remembering first to enter the opening balances).3Question 8For each of the following independent situations and from the information below record the adjusting entries in the General Journal, being as precise with your account titles as possible, e.g. not using “supplies” but “supplies expense” or “supplies on hand”. Please ignore GST except in question (i).i. When supplies are purchased they are recorded as an asset. Calculations after an end of period stock-take revealed a closing stock (balance) of $25,000. There was an opening balance of $20,000 and during the period $27,500 (including GST) of supplies were purchased. Record the adjusting entry.ii. At Thulaisi Enterprises, salaries are paid fortnightly on Friday afternoon. The fortnightly salary bill is $60,000 for the ten-day working fortnight. This accounting period ends on the Thursday evening in the week in which the salaries are paid. Record the adjusting entry.#p#分页标题#e#iii. On January 1, 2011 the Carin Caterers purchased a computer. The computer cost $7,000. It is expected to have a useful life of five years and a scrap or residual value of $1,500. The company calculates and records depreciation on a straight-line basis. Record the adjusting entry for the financial year ending 31/07/2011.iv. Rent is collected on the first day of May. It is collected in advance for the ten months commencing on that day and recorded as revenue. Monthly rent is $2,000. Record the adjusting entry for the financial year ending on September 30.v. Gabriel C.A. is conducting the audit on First Avenger Weapons Limited. It is normal practice not to submit your account/bill/invoice until the audit is completed but by the end of the financial year 99 hours had been spent on the audit. The average hourly rate is $220. Record the adjusting entry for Gabriel C.A.vi. Fiona pays her office insurance of $24,000 annually in early January. The insurance policy covers all the company’s car fleet from 12.01 a.m. on January 1. Insurance is recorded as an asset when paid and the financial-year ends on October 30. Record the adjusting entry on October 30.vii. Light Blue Steel Ltd. is involved in a lawsuit with a former employee. Legal fees incurred so far are estimated at $450,000 at the end of the financial year. Record the adjusting entry for the Light Blue Steel Ltd.viii. Of the $1,080,000 airfare revenue shown in the pre-adjusted trial balance for Kangaroo Air, $180,000 has not been earned this year. Record the adjusting entry.ix. The Pay TV provider offered a special rate for pre-connection subscribers where they would only have to pay $1,200 for a year of pay TV. The provider recorded these connection fees as “unearned connection fee revenue” and 70 people signed up. At the end of the first financial year the provider had only been providing connections for 5 months. Record the adjusting entry for the provider.Question 8 continued over4x. Hannah Investments, invested $150,000 in a term deposit on July 1, 2011. Interest is paid after one year and interest rates are 7.5%. Record the adjusting entry for Hannah Investments on 31 October 2011.xi. Carin recorded the $4,500 paid on 1/03/11 for her new very Smart Mobile phone as an asset. The contract allows unlimited use for 12 months with no more to pay. Record Carin’s adjusting entry if her financial year ended on 31/10/11.xii. TK purchased a textbook for $330 (asset) at the commencement of the semester and expects to sell the textbook at the end of the semester for $110. The semester lasts a total of 10 weeks and TK uses the straight-line depreciation method. TK, being an accountant, wishes to prepare his financial statements at the end of week five of semester. Record his depreciation entry.xiii. Robert owns an island and leased it for 15 years receiving $15 Million (the entire lease amount) at the commencement of the lease. Robert recorded the receipt of the money as Lease Revenue. Record the adjusting entry after 9 months.#p#分页标题#e#xiv. Water expenses average $4,200 per year. The water meter was last read four months ago. The financial year ends today. Record the adjusting entry.xv. The balance in Transporting Fees Revenue account includes $2,500 received last month for removal work that is yet to be carried out. If the financial period ends today record the adjusting entry.xvi. Huang Advertising provided promotional services to Nguyen Ltd. Huang charged $330,000 for these services based on the success of the campaign. Huang recorded the entire amount as Accounts Receivable. It appears that Nguyen Ltd. may only pay for 50% of the promotional services provided because the campaign was not as successful. Record an adjusting entry for Huang Advertising.xvii. When supplies are purchased they are recorded as an expense. An end of period stock-take (count) revealed a closing balance of $12,000. There was no opening balance and during the period $23,000 of supplies were purchased. Record the adjusting entry.xviii. Jonathan has a ‘prepaid’ coffee membership. He paid $100 for the card and is entitled to 50 cups of coffee. The purchase of the membership was recorded as an expense. Record the adjusting entry if Jon has consumed 30 cups of coffees by the end of the financial year.xix. Ball Limited paid rent on the first day of June, a total of $180,000 in advance for ten months commencing on that day and records it as an asset. Record the adjusting entry for the financial year ending August 31 for Ball Limited.xx. Tyler Constructions builds a new warehouse for Bentley Ltd. The building cost a total of $20,000,000 and was completed on 30 April 2007, with an expected useful life of 50 years and residual value of $5,000,000. The building is depreciated on a straight-line basis. Record the adjusting entry for the financial year ending 30 June 2011.5Question 9Hannah Hair DressersUnadjusted Trial Balanceat June 30, 2011ACCOUNT TITLEDEBITCREDITCash at bankGST ReceivablePrepaid insuranceAccounts receivableComputersAccumulated depreciation – computer5% Government Bonds*GST PayableContributed CapitalRetained earningsConsulting service revenueOffice supplies expenseRepairs expenseWages expense25,0002,00015,00030,00015,00040,0002,50020,00050,5005,0005,00025,00015,000150,000200,000200,000*A Government Bonds is an investment from which the company earns interestAdditional Accounts:Account titles:Interest Revenue ReceivableOffice suppliesRepairs PayableInterest RevenueDepreciation Expense – ComputerConsulting Revenue ReceivableAdjustments required for events realised at financial year end are (take into account GST where appropriate):#p#分页标题#e#1. Depreciation on computers for the year, $2,5002. Office supplies on hand but unused at June 30 amounted to $1,0003. Consulting service revenue earned in June, but not yet received $15,500.4. Interest on government bonds is due for the last eight months (5% is an annual interest rate paid by the government).5. Repairs expense incurred but unpaid, $3 300.RequiredA. Prepare adjusting entries (in the General Journal) and post to the relevant ledger (T) accounts remembering to first enter the opening balances.B. Prepare the Statement of Financial Position and Statement of Comprehensive Income.6Question 10Alberts Achievers Ltd has ledger balances at August 31, 2011 for the financial year ended Aug 31, 2011are as follows (all figures in millions):Adjustments Adjusted Trial BalanceCash at Bank (asset)…………………..Accounts Receivable………………..Inventory 01/09/10 (opening balance)GST Receivable……………………….Prepaid Insurance……………………..Office Supplies ………………………….Equipment…………………………………..Accumulated Dep’n – Equipment……Accounts Payable……………………..GST Payable…………………………Loan Payable (long-term)…………….Contributed Capital …………………Retained Earnings.…………………..Sales Revenue………………………..Sales Returns & Allowances………….Sales Discount………………………………..Purchase Discount…………….………Purchases ………………………………..Purchases Returns & Allowances……Freight-in………………………………..Salaries Expenses……………………….Rent Expense……………………………Electricity Expense…………………….…………………………………………………………………………………………………………………….……………………………………………………………………………….#p#分页标题#e#……………………………………….……434……448……315……….21……..28……..35……..931……210………91………14……693……1262………….7…..4340……..14………21……..35…..3796……..14……..63……434……84_______Information for adjustments as at August 31, 2011 is as follows:1. Prepaid insurance, August 31 172. Office supplies on hand, August 31 103. Depreciation Expense for the year – Equipment 214. Salaries payable, August 31 125. Sales revenue unearned at August 31 33Other Information (not an adjustment): Inventory, August 31 $273RequiredA. Prepare a post-adjusted trial balance (after the adjusting entries) at August 31, 2011. Please use the columns to the right, provided above, if you prefer to save time.B. Prepare the Statement of Comprehensive Income. (You need to present the statement to be as informative as possible to the user).7Question 11TK TearawaysStatement of Comprehensive IncomeFor the year ended 30/06/2011(All figures in millions)Sales revenue$ 3,708Less Cost of Goods Sold$ 1,620Gross Profit2,088Other ExpensesDepreciation expense360Wages expense900Rent expense450Insurance expense144Electricity expense126Interest expense on bonds108Total Expenses(2088)Plus Profit on sale of investment72Net Profit$ 72Select statement of financial position accounts1/7/ 201030/6/2011Inventory$72$98Accounts receivable540456Accounts payable252288Wages payable2434Rent payable62Prepaid rent84Prepaid insurance1016Other informationTK paid off (redeemed) $3,600 bonds payable during the year.RequiredFrom the above information prepare the Cash Flows from Operating Activities section of the Statement of Cash Flows for Springfield Canes, first using the direct method and then using the indirect method (you are not asked to prepare the financing and investing sections).8Question 12Fiona Follies Ltd.Statement of Comprehensive IncomeFor the Year Ended 30 June 2011Sales revenue$999,000Less Cost of goods sold666,000Gross profit333,000Operating expenses:Advertising expense$ 77,000Salary expense66,000#p#分页标题#e#Rent expense55,000Depreciation expense8,000Electricity expense7,000Supplies expense6,000Interest expense5,000Bad Debts expense4,000228,000Net Operating Profit before Tax105,000Less Tax30,000Net profit$ 75,000Fiona Follies Ltd.Statement of Changes in EquityFor the Year Ended 30 June 2011Capital, 1 July 2010$ 25,000Add: Net profit75,000Less: Dividends(34,000)Capital, 30 June 201166,0009Fiona Follies Ltd.Statement of Financial PositionAs at1 July 201030 June 2011ASSETSCurrent:Cash at bank$ 31,000$ 33,000Accounts receivable (net)33,00021,000Inventory135,000123,000Total current assets199,000177,000Non-current:Equipment160,000180,000Less: Accumulated depreciation – equipment(16,000)(24,000)Total non-current assets144,000156,000Total assets$343,000$333,000LIABILITIESCurrent:Accounts payable10,0008,000Bill payable40,00040,000Salary payable2,00014,000Total current liabilities52,00062,000Non CurrentLong Term Loan266,000205,000Total Liabilities267,000OWNERS’ EQUITYCapital25,00066,000Total liabilities and owners’ equity$343,000$333,000Capital consists of 20,000 shares and the share price at 30, June 2011 was $30.0010Fiona Follies Ltd.Statement of Cash FlowsFor the Year Ended 30 June 2011Cash Flow from Operating ActivitiesCollections from customers1,011,000Less cash paid to suppliers, employees etc(864,000)Less tax paid(30,000)117,000Cash Flow from Investing ActivitiesPurchase of Equipment(20,000)Cash Flow from Financing ActivitiesRepayment of Loan(61,000)Dividends Paid(34,000)(95,000)Increase in Cash Flow(2,000)Cash on July 1, 201031,000Cash on June 30, 201133,000RequiredDr Fiona has invited you to invest in her company. Before you invest you attempt to calculate the following ratios and undertake other analysis. The earnings per share, price earnings ratio, financial leverage ratio, total asset turnover ratio, net profit margin ratio, accounts receivable turnover ratio, gross profit margin ratio, inventory turnover ratio. Which ratios, if any were you not able to calculate, what information was missing?From your limited analysis, briefly state why you would or would not invest in this business. If you could ask for one piece of information or one financial statement (past present or future) about/for the business, what would it be and why would you ask for it?#p#分页标题#e#澳洲悉尼科技大学会计作业THE END
