ACC1101 Assignment Semester 1 2017 – Total marks 15 DUE DATE: 28th April 2017 Note: The maximum total of 100 marks will be converted to a mark out of 15. The assignment is worth 15% of your final overall mark and covers Topics 1-4. Instructions This assignment is to be your own individual work. You are strongly urged to complete this assessment yourself to receive clear feedback about your level of understanding of the course material. You will find information regarding plagiarism and academic misconduct, such as collusion and cheating in the course specification and on the USQ website. Penalties and/or referral for academic misconduct may be applied where students have failed to submit their own work. Please ask any questions via the Assignment forum. SUBMISSION The assignment must be submitted via the USQ Studydesk link. Only ONE MS WORD document may be submitted. You may choose to use excel or a similar spreadsheet for some of the calculations, but the results must still be transferred to one word document. Please include your name and student number in either a header or a footer of your submitted Word document, or on the front page. There are SIX questions to complete. Any questions regarding the assignment should be posted to the assignment forum on studydesk. A cover sheet is not required. A reference list is required, in proper format, however this need not include the set text or the lecture powerpoints, but only any additional information used, including articles. Provide this reference list at the end of your assignment (covering all questions). USQ uses Harvard referencing and information regarding this is available on the studydesk and also via USQ library. Marks QUES 1 (topic 1) 10 QUES 2 (topic 1) 20 QUES 3 (topic 2a) 20 QUES 4 (topic 2b) 12 QUES 5 (topics 3a and 3b) 26 QUES 6 (topic 4) 12 Maximum 100 out of 15 15 100 - Converted to a mark out of 15 QUESTION ONE (Topic 1) From the five scenarios described below, recommend (giving your reasons) an appropriate business form for each one – sole proprietorship, partnership, or company. If you chose company, be specific about the type of company (private/proprietary or public). In your answer you may suggest that more than one form is suitable, but you need to recommend one in particular, giving reasons. 10 Marks i. ii. iii. iv. v. Liam and Helen wish to start an internet business making organic cosmetics. They are concerned about the legal issues (e.g. their personal liabilities) for this business once they start trading. Owen has just started a home painting business by himself, using money inherited from a wealthy relative. He wishes to employ his wife as a bookkeeper. Three long-standing school friends who also studied together at the same university are wanting to set up a small accountancy business, providing investment advice and completing tax returns. Three successful university medical researchers have developed a new vaccine and wish to attract large scale investment to form a pharmaceutical business. They believe their discoveries have global health implications and wish to have ASX (Australian Stock Exchange) listing. Felicity Eng is a mathematics postgraduate student who wishes to offer maths tutoring to undergraduate students. She also has a friend whom she has known for about six months who is in her final year as a mathematics undergraduate who may help with some of the group sessions, however Felicity wants to be able to keep a tight control on the quality of the tutoring and materials used. QUESTION TWO (Topic 1) Question two requires you to refer to pages 29-40 of the text, and the Employability presentation/powerpoints in Topic 1, in order to respond to an article by Peter Williams in the February 2017 edition of ACCA’s magazine Accounting and Business in which he interviews Paula Kensington FCCA. The article is available as a PDF on studydesk and also from the ACCA website via the following link: http://www.accaglobal.com/an/en/member/member/accountingbusiness/2017/02/interviews/paula -kensington.html 20 Marks Required: Refer to the five desired graduate skills/attributes outlined in module one (see text exhibit 1.13 p. 30 of the set text - Threshold learning outcomes for accounting) and the employability skills outlined in the employability powerpoint . 1. For each of the first four skills (i) judgement, (ii) knowledge, (iii) application skills, (iv) communication and teamwork outlined in Exhibit 1.13 and for the skill (v) critical thinking (also introduced in chapter 1 of the text), briefly describe the skill/attribute and then identify aspects of Paula Kensington’s career where she has exhibited/used these skills/attributes. You may like to present this in a table. You should further include references to the following employability skills from the employability powerpoints (Problem solving; Initiative and enterprise; Planning and organising; Learning; Technology, Personal attributes) by adding them in one of the categories (i) – (v) above. (12.5 marks) 2. The final category identified in Exhibit 1.3 is Self -Management. a) Identify what information the Employability powerpoints give regarding social media and employability. How does Paua Kensington use social media (give examples)? (3 marks) b) Self-management also includes examples of planning and organising. How does Paula Kensington use goals/targets and measurable outcomes to plan and further her career (give examples)? (1 mark) c) Which of any of these desired attributes, mentioned in Exhibit 1.13 or in the Employability powerpoint presentation, is your weakest point do you think? Give reasons for thinking this and state a goal for improvement of that skill and a strategy to achieve the goal during you time at USQ (or how you could do so in the near future). (2 marks) You may wish to present your answer in the form of a grid/table, or using headings and ‘dot’ points. Presentation of your answer should appear professional, however. (1.5 marks for presentation/refernces) NOTE: A brief example of how to approach this question (using a different article) is given in Appendix 1 of this assignment. QUESTION THREE (Topic 2a) (Total 20 marks) Part A - 9 marks Nigel Rawson is a restauranteur and celebrity social media chef, with a floating restaurant on the Brisbane River. An overseas actress wishes to fly to Brisbane for a month of private cooking lessons. Nigel will not cease any of his normal business but will provide lessons over four weeks in the mornings Monday-Friday. The following are estimates relating to providing this private course: Hire of kitchen in local area including electricity: $300 per week. Charge to client per cooking lesson: $210 Additional food to be used per session during lesson: $30 Cost of additional items required by actress – music/wine etc.: $80 per lesson. Cost of cleaners: $15 per hour (2 hours of cleaning required after each session). Cost of feeding actress’ minders and entourage: $60 per session. Hire of music equipment for four weeks: $200 Required: 1. Calculate the variable costs per cooking lesson session (unit) (2 marks) 2. Calculate the contribution margin per cooking lesson session (unit) (2 marks) 3. Calculate the fixed costs of the proposed lessons (1 mark) 4. Calculate the profit or loss of the proposed lessons. Should Nigel accept the proposal and teach the actress? (3 marks) 5. Suppose that Nigel expects the publicity from teaching the actress to be so positive that he will not need to advertise his other business this year, which will save him $1,000 in advertising. Would he accept the proposal to give the actress cooking lessons if that was the case (give justification)? (1 mark) Part B - 11 marks Nigel is considering expanding this idea and giving morning lessons to the general public every week. He expects to do this for 30 weeks during the year (to allow for his other commitments) and only 3 mornings a week. These are his estimates: He would need to hire the kitchen for the entire year (annual rent $15,000). He would charge $50 per person per lesson. Food per lesson will be $5 per person Cost of cleaners: One cleaner to be paid a salary of $12,000 per year Required: 1. Calculate the contribution margin per person for a lesson (1 mark) 2. Calculate the fixed costs for the year (1 mark) 3. How many students will he need to teach to (a) break even and (b) make a target profit of $30,000 (5 marks) 4. Calculate the profit or loss from these lessons for the year if his class size was 15 students per class (and assuming all classes were full) (4 marks) QUESTION FOUR (Topic 2b) (Total 12 marks) Nuts and Bolts Hardware expects the following sales in units in the last quarter (Oct-Dec) of 2017: Oct 44,000; Nov 35,000; Dec 38,000 and 32,000 for January 2018. The business has inventory of 25,000 finished units on hand at 1st October and has a target finished inventory of 40% of the following month’s sales units. The units are purchased for $6 and sold for $12 each. Payment for purchases is made in the month following purchase. Accounts payable for purchases as at 30 September was $180,000. Required: 1. Prepare the sales budget for the quarter October – December 2017 (showing each month and the total for the quarter) (see format p. 101 Exhibit 3.6 the first 3 lines only). You do not need to prepare/include the cash/credit sales split or the schedule of expected cash collections. (2 marks) 2. Prepare the purchases budget for the quarter October – December 2017 (showing each month and the total for the quarter) (see format p.105 Exhibit 3.8) You do need to include the expected payments for purchases. (7 marks) 3. This year the budget has once again been set by senior management. The management accountant at Nuts and Bolts has been reading an article that suggests that staff are more likely to strive to attain budgeted targets if they are included in the budgeted-setting process. Briefly explain why this may be the case and suggest an improvement in the budget-setting process (you may refer to the additional information for Topic 2b (Budgeting and Teamwork) or any other source if referenced. (3 marks) QUESTION FIVE (Topics 3a and 3b) 26 Marks On 1st January 2017 Fabien Dupont started trading as Dupont Real Estate, and completed the following transactions regarding the in the first month: a) Jan 1: Fabien Dupont transferred cash from his personal bank account to the business bank account in order to start operations, $25,000 and also transferred a vehicle worth$12,000 to the business. b) Jan 4: The business paid six month’s rent for office space, $6.600 c) Jan 5: The business purchased office equipment, $4,400 d) Jan 6: Purchased supplies on account, $946 e) Jan 14: Earned first sales commission and received cash, $5,500 f) Jan 18: Paid motor vehicle expenses, $88 g) Jan 20: Fabien Dupont withdrew $60 from the business bank account for personal use h) Jan 25: Earned sales commission and sent the client an invoice which will be paid in February, $4,576 i) Jan 28: Paid for the supplies purchased on January 6 th . Required: 1. Using the format given below, similar to that shown in Exhibit 4.20 p. 157 of the text, complete a transaction analysis for the business for January for transactions a) to i) above. You do need to account for GST. Note that GST occurs arises business revenue earned and expenses incurred, but not on transactions with the owner. (15 marks) 2. For the transaction on January 5th prepare a general journal entry (see Exhibit 5.3 p. 189 for format) (2 marks) 3. Without making any adjustments, prepare a Balance Sheet for Dupont Real Estate as at 31st January 2017 (use the format of Exhibit 4.22 p.163). (7 marks) 4. Looking at the transactions a) – i) above, identify any adjusting entry which may be necessary to improve the financial reporting for January 2017. Explain why this entry may be necessary (you may wish to refer to the ‘matching’ concept or GAAP (generally Accepted Accounting Principle)). (2 marks) = + Trans Date Cash Accounts receivable Prepaid rent Supplies Vehicle Office Equipment GST Paid Accounts payable GST Collected B. Swan capital Revenues Expenses ASSETS LIABILITIES OWNER'S EQUITY QUESTION SIX (Topic 4) 12 Marks You have recently begun employment as the management accountant of a small sole trader – Munro Music Store. The owner is keen to improve the internal control systems of the business and has asked you to prepare a bank reconciliation statement for January 2017. The business currently has a manual accounting system. Below are provided extracts from their cash receipts book, cash payments book, and the general ledger account for ‘Cash at Bank’. They have just received their bank statement for January 2017 but have made no alterations to their accounting records as a result of receiving the bank statement. Required: 1. Prepare general journal entries for any items that need to be added to cash receipts and payments for the business via the General journal (see text p. 249 & Topic 4 lecture slide 19). (3 marks) 2. Update the General Ledger Cash at Bank account as necessary (you do not need update any of the other of the ledger accounts) to calculate a new balance for Cash at Bank as at 31st January 2017 (Topic 4 lecture slide 19). (2 marks) 3. Prepare a Bank Reconciliation Statement as at 31st January 2017 (format p.247 text). (7 marks) An excel version of the formats will be posted to studydesk to use for workings if you wish, but your solution would need to be added to the Word document for submission. You should refer to the topic 4 lecture slides/recording to assist you in answering this question, as well as chapter 6 of the text Appendix A This is to provide an example of how to approach QUESTION 2, based on a different article of an interview with entrepreneur Sara Al Madani, -see pdf on studydesk or link http://www.accaglobal.com/an/en/member/member/accountingbusiness/2017/03/interviews/saraalmadani.html> Attribute: Description of attribute Example(s) from article Judgement (Problem solving) Exercise judgement to solve problems Deciding on product lines and seeing opportunities for new business – calculated risk taking Knowledge (Learning; Technology) Acquire relevant knowledge over relevant area Financial professional background important – lack of such knowledge why most start-ups fail Application skills (Problem solving) Apply knowledge to solve routine problems Needs reasons why things won’t work. Personal attribute – stubborn/tenacious & not afraid to fail Overcome bias and stereotypes – problem solving - by working with men e.g. regular meetings with financial institutions Communication & teamwork Travels in UAE and overseas to make presentations –aims to inspire/set example e.g. keynote speaker ACCA Middle East’s Women in Finance event 2016 Uses case studies to inspire others Includes men in discussions Board member Sharjah Chamber of Commerce Critical thinking (Initiative and enterprise) Created innovative/ unconventional designs for traditional garment Multiple ventures e.g. British restaurant Defines problem e.g. cultural bias – finds possible solutions - works with system whilst seeking to lead by public example Self management Includes -planning & organising: Must have a vision to inspire you and set goals prioritises what is important to finish; be selective in what you invest in and find your true passion – requires selfdiscovery (reflection) networking & self-promotion/vision promotion – participation on boards and speaker at events -learning – continuous learning requires self-reflection – Has reflected on what makes her successful e.g. Personal attributes – stubborn/tenacious & not afraid to fail; don’t think femininity a weakness – i.e. find your strengths e.g. multitasking Note – this is not a full answer for this article, just some suggestions for the approach to take in answering. Note that some attributes fit in more than one category. REFERENCES If referencing from the printed Journal/Magazine (or scan of same): Hashem, H 2017, ‘Journey of Discovery’, Accounting and Business, March 2017, pp. 30-31 If referencing from the online article: Hashem, H 2017, ‘Interview: Sara Al Madani, Emirati entrepreneur’, Accounting and Business, 1 March 2017, viewed 15 March 2017, < http://www.accaglobal.com/an/en/member/member/accountingbusiness/2017/03/interviews/saraalmadani.html> Extract from Harvard ref, guide:
29-10-2013 07:42 PM#271
30-10-2013 07:51 AM#272
Writing my last exam tomorrow AIN1501, how difficult is it for those who have done it?
30-10-2013 08:44 AM#273
Wrote INF1511 yesterday - was a pretty easy. One more left - INF1520.
I'm looking at what modules to do next semester. What are ICT2622, INF2603 like? Is INF2611 as easy as INF1511?
Last edited by senyetse; 30-10-2013 at 08:59 AM.
30-10-2013 09:11 AM#274
30-10-2013 09:36 AM#275
Oops meant ICT2621. Easy?
The reason why I ask is I want to do 4 easy modules next semester.
INF2603Originally Posted by froot
Did you do ICT2621 yet? It's the same textbook, just the other half of it.
Last edited by senyetse; 30-10-2013 at 09:44 AM.
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