i want to make assignment

AC 3202 Corporate Accounting I, Semester B, 20

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7/2018

Week 3 Presentation of financial statements assignments

Question 1

Listed below is Apple Ltd.’s unadjusted trial balance at 31 December 2016.

16,000

1,000

$981,400

Dr.	Cr.
Accounts Receivables	48,000
Prepaid Insurance	10,000
Inventory	12,400
Cash		16,000
Freehold Land (at cost)	200,000
Office Building (at cost)	336,000
Purchases (net)	258,000
Advertising expenses
Operating expenses	12,000
Interest expense		1,000
Other Administrative expenses	26,000
Insurance expense	4,000
Wages expense	42,000
Accounts Payable	38,000
Loans Payable (due in 2018)	20,000
Share Capital (no par value)	280,000
Retained Profits	102,400
	Sales	414,000
Accumulated depreciation – Buildings	126,000
	Allowance for bad debts
	$981,400

Additional information:

1. Included in Sales are $28,000 for goods (cost: $18,000) shipped, terms FOB destination, to a customer on 29 December 2016. The customer received the goods on 2 January 2017 and has 30 days to settle payment.

2. Apple Ltd. decided to revalue its freehold land for the first time and to reflect the valuation in the 2016 financial statements. The land has a fair value of $235,000 at 31 December 2016.

3. Depreciation of 10% on cost on a straight-line method is to be provided for the Office Building.

4. It was determined that the “Allowance for bad debts” account at 31 December 2016 should be $1,200.

5. The interest expense relates to the Loan Payable (due in 2018) obtained two years ago at interest of 10% per annum payable annually on 30 June.

6. The Prepaid Insurance represents insurance paid for the period May 2016 to February 2017 for the Office Building.

7. Accrue $1,500 tax payable for 2016.

8. On December 30 2016, the board of directors declared dividends of $10,000.

9. Inventory based on a physical count of goods in the warehouse on 31 December 2016 was determined to be $32,000. Included in the physical count were $10,000 goods on consignment from Stanley Co.

10. The bad debt expenses should be classified as administrative expenses. The wages expense should be allocated 70% to administrative expenses and 30% to selling and distribution expenses.

Required:

a. Prepare journal entries necessary for the preparation of the 2016 financial statements.

b. Prepare the Statement of profit or loss and other comprehensive income (single statement approach) (classification of expenses by function) for the year ended 31 December 2016.

c. Prepare the Statement of changes in equity for the year ended 31 December 2016.

d. Prepare the classified Statement of financial position (format A – L = E) as at 31 December 2016.

Question 2

The ledger balances at 31 March 2017 extracted from the books of Tiger Limited are as follows:

$’000

Sales

Allowance for bad debts

736,391

Debit	Credit
	$’000
288,522
Inventories, 31 March 2017	40,825
Cost of goods sold	184,087
Distribution costs	18,526
Administrative expenses	9,490
Other income – investment income	7,597
Finance costs	7,709
Other operating expenses	2,177
Depreciation expenses	3,470
Bank loan	100,000
Accounts and other receivables	43,319
2,500
Cash	60,754
Intangible assets	12,693
Property, plant and equipment, at cost	341,125
Accumulated depreciation – Property, plant and equipment	100,028
Investment property	12,216
Retained earnings, 1 April 2016	116,971
Share capital	40,000
Short-term borrowings	57,183
Accounts and other payables	23,590
Total		736,391

Additional information:

(1) Included in item “Property, plant and equipment” was a piece of machinery, machinery A, acquired on 1 April 2016 at a cost of $40,000,000 with no estimated residual value and useful life of 5 years.

Additional information is also available:

(a) The revalued amount of machinery A as of 31 March 2017 was $34,000,000. Revalued amounts of all other items in property, plant and equipment are close to the costs.

(b) Tiger Limited uses revaluation model to measure property, plant and equipment subsequently, and there is no balance of revaluation surplus on 1 April 2016.

(c) Depreciation charge on machinery A for the year ended 31 March 2017 was not made, while depreciation charges on all other items of property, plant and equipment for the year ended 31 March 2017 were made before the extraction of ledger balances.

(2) It was determined that the “Allowance for bad debts” account at year-end should be $3,200,000.

(3) The bank loan was first obtained at 1 April 2015 with a term of twelve years. Annual repayment of principal is $10 million. Interest rate of the loan is 5% per annum calculated on 31 March each year and is payable in April of the same year.

(4) The amount of tax to be provided for the year is $12,848,000.

(5) Fair value of investment property at 31 March 2017 is estimated to be $14,500,000.

(6) Depreciation expense on machinery A should be classified as “Distribution costs” in the presentation in financial statement. The depreciation expenses of other items in property, plant and equipment should be allocated 50% to “Administrative expense” and 50% to “Distribution costs”. The bad debt expenses should be classified as “Administrative expenses”.

Required:

a. Prepare journal entries necessary for the preparation of the 2017 financial statements.

b. Prepare the Statement of profit or loss and other comprehensive income (single statement approach) (classification of expenses by function) for the year ended 31 March 2017.

c. Prepare the Statement of changes in equity for the year ended 31 March 2017.

d. Prepare the classified Statement of financial position (format A – L = E) as at 31 March 2017.

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FACULTY OF HIGHER EDUCATION

Individual Assignment

HOLMES INSTITUTE

FACULTY OF HIGHER EDUCATION

Impact of IT on Business

1500 – 2000 words worth 25%

HC1041 IT for Business

Trimester 3 2017

Date Due: Friday Week 11 by 5:00 PM
Marks: Weighting 25%

Student Name (Block letters) Student Number:

___________________________ _____________

HOLMES INSTITUTE

FACULTY OF
HIGHER EDUCATION

HC1041 IT for Business – Trimester 3 2017

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Individual Assignment Requirements

Read the case study and answer the following questions:

1) What are the advantages and disadvantages of the new POS system?
2) How will this POS system help the business gain competitive advantages?
3) What are the advantages of having a centralised database?
4) How could this POS system facilitate decision making?
Address the following points:

 Why do point-of-sale systems process business activities more effectively?

 Can the information be tracked manually in an effective manner? Why or why not?

 What types of questions could be answered effectively?

 How could the information be used to better manage the business?
5) Recommend telecommunication options for this POS system
Address the following points:

 Types of networks – LAN, WAN or MAN?

 Types of media? –Wired or wireless technologies? Which types of cables should
be used for wired technologies? Which types of wireless technologies?

6) What type of risks does the POS system bring and how to protect the business
against the risks?
Address the following points:

 Security

 Privacy

 Confidentiality

Your report will be assessed on the quality of your research and quality of report.
Discussion must be relevant to the case study business. Your report is to be in the style
of a business report.

HC1041 IT for Business – Trimester 3 2017

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Case study — Blooming with Technology
The use of information technology is needed by every industry size and type of business.
Small businesses can realize the positive effects through adopting technology. However,
small businesses often do not have the resources and expertise of large corporations to
implement information technology strategies. However, the benefits of technology for
small and medium-sized enterprises (SMEs) are just as crucial to business operations and
strategy.

Consider Four Seasons Greenhouse and Nursery, located in Colorado. This small nursery
was like many other small businesses and garden centers. They used manual registers to
track and maintain its inventory as well as determine which products were realizing the
most profit. The profits from the nursery were either “negligible” or a loss. They did not
have access to useful operational data to effectively manage their business. For
example, they did not track or review the margins of individual products. However, they
believed that they needed to do something different for their $1M business operation.

Enter a new point-of-sale system (POS) in 2008. The system allowed the owners to track
useful business data from the sales transactions immediately at the time of the sale;
eliminating the need for tracking sales manually. The system processes and stores data
from the sale while updating the inventory as well as compiling a sales history. This
eliminates reliance on manual entry of sales transactions and reduction of inventory
units for the items sold. POS systems provide much more than a cash register. These
systems provide more robust functionality in inputting, tracking, and distributing data to
provide useful information to operate and manage the business.

Accurate inventory data maintained by the POS helped with decision making. Decisions
on how many units of a product to order were no longer based on speculation about
current inventory units. Now, accurate inventory counts eliminate the guesswork on
how much to order, helping the business to operate on leaner inventory units. The
system’s reporting can provide the detail transactions for an inventory item, such as how
many were purchased, discarded, and sold.

The implementation of a POS system also confirmed that the owners did not know as
much about their business as they thought they did. As they reviewed reports from the
new system, they saw that some products were less profitable than they thought. The
more detailed cost reporting by item helped them to understand which products
contributed the most profit to the operation. Their new perspective of the “real costs”
provided the opportunity to shift production to the higher-profit items, thereby gaining
more profit. Prior to implementing the POS system, they simply did not have the time to
approach this level of decision making.

Knowledge of their detailed product costs helps them to price products more profitably.
Price changes can be implemented temporarily (for a promotion) or permanently and
still remain within acceptable product margins. The accurate and timely reporting of this
information assists them to be more effective managers of their business operations.
The ability of the system to process sales, inventory, and purchasing transactions
immediately reduces the need for data entry of paper information. The time savings can
be used for managing the business rather than mundane clerical functions.

The new system has expanded Four Seasons’ management control over employee
schedules to review and allocate labour expenses to specific departments and functions.
An additional benefit allows the owners to delegate more responsibility to the staff and
establish accountability. Instead of the owners establishing goals, they provide the

HC1041 IT for Business – Trimester 3 2017

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system’s data and ask staff to submit their sales goals for the next reporting period.
Ultimately, the information technology system creates a solid infrastructure to process
and report the businesses operations for the entire enterprise.

The garden centre is an excellent example of how technology can realize benefits for a
business. The ability for organizations to remain competitive and agile is crucial. These
systems allow organizations large and small to leverage business data to gain a
competitive advantage and operational efficiency.

Source: Jones, R. (2011, May). Garden Center 2.0. Today’s Garden Center, 8, 14-16.

Assessment Criteria (Individual Assignment 25%) Weighting

1. Introduction:
Clear statement of purpose, clarity of methods and assumptions;
systematic approach to project.

2. Use of resources:
Application of relevant course concepts, tools and frameworks use of
evidences, engagement with the literature.

3. Content:

 Balanced coverage of each of the important points,

 Richness of analysis;

 Flow of ideas;

 Validity of objectives,

 Use of own insight and originality;

 Feasibility of recommendations and implementation
consideration

4. Organization and Presentation:
Clarity of structure, quality of presentation, style and readability.
Title page, Table of contents, List of abbreviations and/or glossary,
Executive summary/abstract, Introduction, Body, Conclusion
Recommendations, Bibliography, Appendices

5. Citation practice:
Appropriate citation of sources and evidences used.

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