This is individual assignment and students are required to answer ALL questions.
finance
Description
INTI INTERNATIONAL
UNIVERSITY
ACC2211 BUSINESS ACCOUNTING
JANUARY 2020 SESSION
INDIVIDUAL ASSIGNMENT
INSTRUCTIONS
1.
2. The due date for this
assignment is on Wednesday, 26th
February, 2020.
3. Please use the cover page attached as the front page of your
assignment.
GRADING
The total marks for this assignment is 100 and this
contributes 20% towards the total
grade of the course.
Upon
completion of this assignment, students should be able to:
|
LO1 |
Explain
the accounting principles and the role of financial reports to users. |
|
LO2 |
Explain the concept of
accrual accounting and why it is used |
OBJECTIVES
The concept of this assignment is to introduce
students with the fundamentals and principles of financial accounting. The objectives of this assignments are as
follows:-
1. To explain what is
accounting.
2. To explain the economic
entity assumption.
3. To analyze the effects of
business transactions on the accounting equation.
4. To explain accrual and cash
accounting.
REQUIREMENTS
Answer
ALL Questions.
Students may require the use of materials available
in the subject module or textbook to complete the assignment. However, students
are strongly encouraged to supplement the assignment from other textbooks,
journals, magazines or articles.
SUBMISSION
The deadline for the individual assignment is
on 26th February, 2020* before
12.00 noon.
* Late
submission will cause a deduction of marks.
Submission
of the assignment is at your respective lecturer’s office.
1.
Submission
requirements:
Font: Times New Roman
Font size: 12 for content; 14 for subtitle; 16 for
title; 10 for references
Spacing and alignment: 1.5, justified
NO comb binding and plastic cover sheets required.
STAPLED
submission ONLY.
Any
act of plagiarism is a serious academic
offence and you may get an F for the subject.
PART A
Shirley
spent much of her childhood learning the art of cookie-making from her
grandmother. They passed many happy
hours mastering every type of cookie imaginable and later creating new recipes
that were both healthy and delicious.
Now at the start of her second year in college, Shirley is investigating
various possibilities for starting her own business as part of the requirements
of the entrepreneurship program in which she enrolled.
A
long-time friend insists that Shirley has to somehow include cookies in her
business plan. After a series of
brainstorming sessions, Shirley settles on the idea of operating a
cookie-making school. She will start on
a part-time basis and offer her services in people’s home. Now that she has started thinking about it,
the possibilities see endless. During
the fall season, she will concentrate on holiday cookies. She will offer individual lessons and group
sessions (which will probably be more entertainment than education for the
participants). Shirley also decides to
include children in her target market.
The
first difficult lesson is coming up with the perfect name for her
business. In the end. She settles on
“Cookie Creations” and then moves on to more important issues.
Required:
Respond
to the following discussion questions to help Shirley with her cookie making
business.
a)
What form of business
organization-proprietorship, partnership or corporation- do you recommend that
Shirley use for her business? Discuss the benefits and weaknesses of each form
and give the reasons for your choice.
(15 marks)
b)
Will Shirley need accounting
information? If Yes, what information will she need and why? How often will she
need this information?
(10
marks)
c)
Identify specific assets,
liability, and equity accounts that Cookie Creations will likely use to record
its business transactions.
(10 marks)
d)
Should Shirley open a
separate bank account for the business? Why or why not?
(5
marks)
e)
At the end of the year, Shirley
will have to prepare the financial statements for her company, Cookie
Creations. Identify who are the internal and the external users of the
financial statement?
(10 marks)
TOTAL: 50 MARKS
PART
B
Miss
Zarina started a consulting firm, Zarina & Co Consulting, on May 1,
2018. The following transactions
occurred during the month of May.
|
May
1 |
Zarina
invested RM8,000 cash in the business in exchange for shares. |
|
May
2 |
Paid
RM800 for office rent for the month. |
|
May
3 |
Purchased
RM500 of supplies on account. |
|
May
5 |
Paid
RM50 to advertise in the County News. |
|
May
9 |
Received
RM3,000 cash for services provided. |
|
May
12 |
Declared
and paid a RM700 cash dividend. |
|
May
15 |
Performed
RM3,300 of services on account. |
|
May
17 |
Paid
RM2,100 for employee salaries. |
|
May
20 |
Paid
for the supplies purchased on account on May 3. |
|
May
23 |
Received
a cash payment of RM2,000 for services provided on account on May 15. |
|
May
26 |
Borrowed
RM5,000 from the bank on a note payable. |
|
May
29 |
Purchased
office equipment for RM2,300 on account. |
|
May
30 |
Paid
RM150 for utilities. |
Required:
Show the effects of the above transactions on the
accounting equation using the following format:
|
Assets |
= |
Liabilities |
|
Equity |
|||||||||||||||
|
Date |
Cash |
+ |
Ac Receivable |
+ |
Supplies |
+ |
Equipment |
= |
Notes Payable |
+ |
Ac Payable |
+ |
Share Capital |
+ |
Retained Earning |
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rev |
- |
Exp. |
- |
Div |
(30 MARKS)
PART C
The Orange Motel opened for business on May 1, 2019.
Its trial balance before adjustment on May 31 is as follows:-
Continued…
Orang Motel
Trial Balance
May 31, 2019
Account Number Debit Credit
101 Cash 2,500 126 Supplied 1,520
130 Prepaid Insurance 2,400
140 Land 14,000
141 Buildings 58,000
157 Equipment 15,000
201 Accounts Payable 4,800
208 Unearned Rent
Revenue 3,300
275 Mortgage Payable 38,000
311 Share Capital –
Ordinary 40,000
429 Rent Revenue 12,300
610 Advertising
Expenses 780
726 Salaries and Wage
Expenses 3,300
732 Utilities Expenses 900
RM98,400 RM98,400
In addition to those accounts listed on the trial
balance, the chart of accounts for Orange Motel also contains the following
accounts and account numbers: No. 142 Accumulated Depreciation-Buildings, No.
158 Accumulated Depreciation-Equipment, No. 212 Salaries and Wages Payable, No.
230 Interest Payable, No. 631 Supplies Expense, No. 711 Depreciation Expense,
No. 718 Interest Expense, and No. 722 Insurance Expense.
Other data:
1. Prepaid insurance is a 1-year policy starting May
1, 2019
2. A count of supplies shows RM350 of unused
supplies on May 31
3. Annual depreciation is RM2,640 on the buildings
and RM1,500 on equipment
4. The mortgage interest rate is 12% (The mortgage
was taken out on May 1)
5. Two-thirds of the unearned revenue has been
recognized for services performed
6. Salaries of RM750 are accrued and unpaid at May
31.
Required:
Journalized the adjusting journal entries on May 31.
(20 MARKS)
[GRAND TOTAL:
100 MARKS]
COVER PAGE
INDIVIDUAL ASSIGNMENT
JANUARY 2020
SESSION
ACC2211
BUSINESS ACCCOUNTING
NAME :
____________________________________________
STUDENT ID NUMBER: _____________________________
CONTACT NO. (HAND PHONE):
_____________________
COURSE :
__________________________________________
EXAMINER (LECTURER):
____________________________
|
ASSIGNMENT |
MARKS |
|
PART A |
/50 |
|
PART B |
/30 |
|
PART C |
/20 |
|
TOTAL |
/100 |
