Accounting for Business: Individual Assignment BAP 12A

Accounting for Business
BAP 12A
Assessment 1 (5%): Individual hand-written
assignment
Trimester 1, Year 2020
Student Id Number Student
Name
Signature of Student: Date:
---------------------------------------------------
------------------------------------------I hereby confirm that this assignment submitted is my
own original work and handwritten by myself.
Instructions:
 This is an Individual hand-written assignment.
o Photostats or typed submissions will not be allowed.
o Please ensure that your submission must be your own
original attempt. Student handwriting will be verified to
other hand-written assessments.
 Student answers and submissions are required to be
completed as follows:
o Questions 1 in the space provided in THIS answer
booklet.
o Question 2 to be completed separately and your answer
sheet to be attached to THIS answer booklet.
 Due date for this assignment is Week 4
o Your hand-written attempt must be handed to the
lecturer by latest end of lecture 4 class.
1 | Accounting for Business: Individual hand-written assignment, T3
Year 2019

o Late submissions will be subject to a 25% reduction in
marks obtained.
 Results for this assessment will be released at the end of
week 10.
Question 1 (70%)
Orange Pty Ltd started business on the 1 August 2016. During the first
months of operations the following transactions occurred:
Date: Transactions
Aug 1 The business issued shares and shareholders invested $110,000
cash in the business.
Aug 2 The business borrowed $25,000 from KMP Bank Ltd and received
the funds in cash.
Aug 3 Purchased office furniture for $13,500, paying $6,000 in cash and
the balance on account (i.e. credit), to be paid on 31 December
2016.
Aug 5 Received $9,000 in cash from a customer for services performed.
Aug 7 Purchased supplies on account (i.e. credit) of $7,500
Aug
10
Performed services for a customer on account (i.e. credit) and
invoiced customer $4,200.
Aug
15
Paid $1,500 in cash for office rent for August 2016.
Aug
16
Received $2,000 in cash from a customer as an advance payment
for services to be completed by 31 October 2016.
Aug
20
Paid $7,500 in cash for supplies purchased on account. (Refer to
transaction on 7 Aug 2016)
Aug
27
Paid $600 in cash for a 12-month business insurance policy will
commence on 1 September 2016 and end on 31 August 2017.
Aug
28
Paid an employee cash wages of $2,200 for work performed during
August 2016.
Aug
29
Received $4,200 in cash from a customer invoiced on 10 October.
Aug
31
Paid $1200 dividend in cash to shareholders.
The company’s chart of accounts reveal the following relevant account
listing:
 Cash  Office Equipment  Share Capital
 Supplies  Accounts Payable  Dividends
 Accounts
Receivable
 Income Received in
advance
 Service
Revenue
 Prepaid
Insurance
 Bank Loan  Rent
Expense
 Wage
Expense
Required:
2 | Accounting for Business: Individual hand-written assignment, T3
Year 2019

a) Prepare journal entries to record the transactions for October 2016.
b) Post the October 2016 journal entries to the relevant general ledger
accounts.
c) Prepare a trial balance at 31October 2016.
Narrations are not required. Please use the correct account names in your
journal entries as they are stated in this question, failure to do so will
result in your answer being incorrect.
Complete your answer in the spaces provided.
3 | Accounting for Business: Individual hand-written assignment, T3
Year 2019

Student Answer: Question 1 – Part (a)
Orange Pty Ltd – General Journal
Aug’
16 Account Titles Dr $ Cr $
01-Aug Cash A/c ... Dr 1,10,000
To Share Capital A/c 1,10,000
02-Aug Cash A/c ..... Dr 25,000
To Bank Loan A/c 25,000
03-Aug Office Furniture/ Equipment A/c .... Dr 13,500
To Cash A/c 6,000
To Accounts payable 7,500
05-Aug Cash A/c ... Dr 9,000
To Service Revenue A/c 9,000
07-Aug Supplies A/c ... Dr 7,500
To Accounts Payable A/c 7,500
10-Aug Accounts Receivables A/c ... Dr 4,200
To Service Revenue 4,200
15-Aug Office Rent A/c .... Dr 1,500
To Cash A/c 1,500
16-Aug Cash A/c... Dr 2,000
To Income Received in Advance A/c 2,000
20-Aug Accounts Payable A/c ... Dr 7,500
To Cash A/c 7,500
27-Aug Prepaid Insurance A/c ... Dr 600
To Cash A/c 600
28-Aug Wage Expense A/c ... Dr 2,200
To Cash A/c 2,200
29-Aug Cash A/c .... Dr 4,200
To Accounts Receivables A/c 4,200
31-Aug Dividend A/c .. Dr 1,200
To Cash 1,200
Student Answer: Question 1 – Part (b)
4 | Accounting for Business: Individual hand-written assignment, T3
Year 2019