Accounting Assignment: Financial Reporting, Analysis, and Systems

Verified

Added on  2020/03/01

|16
|2579
|439
Homework Assignment
AI Summary
This accounting assignment solution addresses various aspects of accounting principles and practices. It begins by defining plagiarism and provides methods for copying and pasting in Excel while viewing formulas. The solution includes a list of relevant accounting websites, and information about the CPA Australia. It explores the use of ERP software in business operations, highlighting its benefits in streamlining processes. The assignment covers major financial reports like the statement of financial position, income statement, and cash flow statement, along with a case study analysis of ABC Learning, including ethical issues. It also includes journal entries, income statement, balance sheet and owner's equity calculations. The solution provides Excel sheets with normal and formula views, trial balance, and a crossword puzzle with accounting terms.
tabler-icon-diamond-filled.svg

Contribute Materials

Your contribution can guide someone’s learning journey. Share your documents today.
Document Page
Accounting System and Process
1
tabler-icon-diamond-filled.svg

Secure Best Marks with AI Grader

Need help grading? Try our AI Grader for instant feedback on your assignments.
Document Page
Answer 1:
Plagiarism is a punishable offense by the educational universities that refers to the
adoption of other people work and submitting them as their own. Plagiarism is regarded as
punishable as it result in being unfair to honest students by giving them reduced marks in
compassion to other students who can achieve good marks through copying other people
work (Porter and Norton, 2014).
Answer 2:
The two different ways of copy and paste:
a) Select the desired area and press copy in the excel sheet. After that in word document
paste as special.
b) Other way is to copy the whole sheet in excel and paste in word document as an
object.
In order to view the formula in excel, do the following:
a) Firstly select the sheet you want to view as formula view
b) Click on the formula tab in the menu bar
c) Click on the show formula
Spreadsheet with normal view:
Average of the numbers
Averag
e
545 546 547 548 546.5
546 547 548 549 547.5
547 548 549 550 548.5
548 549 550 551 549.5
549 550 551 552 550.5
Addition 2735 2740 2745 2750 2742.5
2
Document Page
Spreadsheet with formula view:
Average of the numbers Average
545 546 547 548
=AVERAGE(B3:E
3)
546 547 548 549
=AVERAGE(B4:E
4)
547 548 549 550
=AVERAGE(B5:E
5)
548 549 550 551
=AVERAGE(B6:E
6)
549 550 551 552
=AVERAGE(B7:E
7)
Additio
n
=SUM(B3:B
7)
=SUM(C3:C
7)
=SUM(D3:D
7)
=SUM(E3:E
7) =SUM(F3:F7)
Answer 3:
The five web sites relevant to accounting together with their URLs:
http://www.accountingcoach.com/ : This website provides information to students and
businesses regarding the skills and expertise required for working in the accounting field. It
helps the readers in developing an understanding of the various important accounting
terminologies. Thus, it provides vast information to the business owners and other people
who are interested to develop a career in the field of accounting.
http://www.sleeter.com/ : The website aims to provide assistance to the accounting
professionals by resolving their queries and problems. The website has over 600 accounting
professionals for providing consultation to the professionals interested in developing a career
in accounting.
http://www.deardrebit.com/ : The website serves as an inline platform for various accounting
professional to discuss about the accounting and financial issues.
http://daily.financialexecutives.org/financial-reporting/ : The website provides latest news
and information about the accounting issues to the financial executives.
https://www.economist.com/?corporate%20accounting : It provides information related to the
world politics, business and finance.
Answer 4:
The online website of CPA Australia is recognized as world’s largest accounting body
in Australia with global membership of about 160,000 members. The online link to the
website is:
https://www.cpaaustralia.com.au/about-us
3
Document Page
The Professional Resources section within this website provides assistance to the
accounting professionals about various accounting topics such as financial reporting,
superannuation and many others.
Answer 5:
The business organizations are incorporating the use of latest and efficient computer
devices for performing their operational activities rapidly and thus to stay competitive. As
such, the business organizations are placing large focus on developing an effective computing
environment within their workplaces for enhancing the efficiency of their business
operations. My previous workplace was an IT company that has adopted the use of ERP
(Enterprise Resource Planning) software. The ERP is management software that enables
business organizations to manage and control their operational activities through the use of
system of integrated applications. The use of ERP in my previous workplace has proved to
very beneficial in integrating its various business processes and thus perfuming them
efficiently within a short span of time. The most important feature of the ERP was that it
provides a shared database for supporting various operational functions of different business
units of an enterprise. My last organization has various business units and therefore the use of
ERP enabled it to streamline the business process of its various units by sharing information
across the various departments quickly. The use of ERP had helped in managing the internal
and external resources of the organization effectively such as physical assets, human capital
and financial resources. The organization uses ERP in all of its core business activities such
as product planning, manufacturing, logistics, purchasing and sale. As Such, ERP has
enabled the organization to align its multiple business processes and thus increasing their
operational efficiency. The better synchronization and automation of operational processes
through the use of ERP has helped to a large extent in improving its productivity and sales
through improving customer relationship management. Thus, the computing environment in
my previous workplace was very efficient as all the operational processes were automated
that helped in faster communication and reducing the manual work (Abraham, Baets, Koppen
and Nickolay, 2006).
Answer 6:
1. Major financial reports and their Purpose
The major financial reports developed by a business entity along-with their purposes
are discussed below:
ï‚· Statement of Financial Position: The statement of financial position or balance sheet
provides the information related to the assets, liabilities and equity structure of an
entity as per a specific period of time. The main purpose of the balance sheet
developed by an entity is to disclose the financial information related to its liquidity
and capital structure.
ï‚· Income Statement: It is regarded to be the highly important financial statement as it
discloses the financial facts and figures about the revenue, expense and profit or loss
4
tabler-icon-diamond-filled.svg

Secure Best Marks with AI Grader

Need help grading? Try our AI Grader for instant feedback on your assignments.
Document Page
attained at the end of a financial year by a business entity. The main purpose of this
financial report is to illustrate the operating performance of an entity.
ï‚· Cash Flows: The statement of cash flow depicts the inflows and outflows of cash that
are incurred during a reporting period. The main purpose of this financial report is to
represent the movement of cash flows experiences by a business entity.
ï‚· Statement of retained earnings: This financial statement reports the equity changes
over a financial period trough depicting sale of stock, dividend paid and equity change
due to profit or loss incurred by an entity. The main purpose is to represent the equity
structure of an entity during a reporting period (Lee, 2014).
2. Lessons from ABC learning case study
The main reason for the downfall of the ABC Learning as analyzed form the case
study was incorrect accounting valuation. The company does not pay attention to
fundamentals of accounting resulting in its downfall. Thus, the case study has helped in
analyzing that ignorance of financial accounting rules and principles for realization of higher
profits can result in the failure of a business entity. The company was a recognized child care
center of Australia but collapsed in the year 2007 due to manipulation of their assets. The
company inflated the value of their assets resulting in its incorrect valuation. The company
has placed large focus on its growth strategies and went on opening large number of child
care centers. The company came under debt for the pursuit if its growth strategies which
eventually lead to its collapse. Thus, the case study of ABC illustrated that a business entity
must emphasize primarily on maintaining its sound financial structure rather than only
focusing on realization of its grand vision (Thomson, 2008).
3. Ethical issues identified from the case study
ï‚· Proper Business Valuation: As analyzed form the ABC case study, a business entity
must always adopt the use of proper accounting policies for correct valuation of its
business assets.
ï‚· Developing Sound Financial Structure: ABC has developed and maintained a
complex financial structure that was rather difficult for its investors to understand
resulting in their loss of confidence to invest in the company. Thus, a company must
always develop a simple financial structure that can be easily understood by the users.
ï‚· Manipulation of Accounts: The ABC Company unethically inflated the value of its
assets and revenue realization thus resulted in its downfall. Thus, a company should
not misrepresent its financial position for the sake of realizing higher profits
(Thomson, 2008).
Answer 7:
Part 1:
Account Name PALER Account Name PALER
Loan Payable L Office Furniture A
5
Document Page
Rent Expenses E Electricity and Gas expenses E
Cash A Accounts Payable L
Office Supplies A Amy Capital P
Salary Expenses E Service Revenue R
Salaries Payable L Accounts Receivable A
Property Tax Expenses E Supplies Expenses E
Prepaid Expenses A Investments A
Part 2:
Income Statement
Design Studio
As on 31 Dec 2016
Particulars Amounts
Service Revenue $ 155,800.00
Less: Expenses
Rent Expenses $ 33,000.00
Salary Expenses $ 49,000.00
Property Tax Expenses
$
1,700.00
Electricity and Gas expenses
$
6,500.00
Supplies Expenses $ 33,600.00
Total $ 123,800.00
Results of Operations $ 32,000.00
Part 3:
Calculation of Owner's Drawings
Owner Capital at the beginning $ -
Capital Invested $ 15,000.00
Profit of the year $ 32,000.00
Sub total $ 47,000.00
Less: Ending Owner's Capital $ 42,900.00
Amount of Owner Drawings $ 4,100.00
Part 4:
Balance Sheet as on 31 Dec 2016
Liabilities Amount Assets Amount
6
Document Page
Loan Payable $ 12,300.00 Cash $ 6,500.00
Salaries Payable $ 2,400.00 Office Supplies $ 3,300.00
Accounts Payable $ 2,400.00 Prepaid Expenses $ 8,000.00
Office Furniture $ 28,000.00
Amy Capital $ 42,900.00 Accounts Receivable $ 9,200.00
Investments $ 5,000.00
Total $ 60,000.00 Total $ 60,000.00
Answer 8:
Excel Sheet With Normal View:
Report Case 1 Case 2 Case 3
revenue $ 600.00 K $ 835.00
$
2,040.00
expenses $ 300.00 $ 300.00
$
1,480.00
dividends declared $ - $ 45.00 Q $ 810.00
additional investment by
stockholders $ - $ 60.00 $ 460.00
net income E $ 300.00 $ 550.00 P $ 210.00
retained earnings
beginning of year $ 110.00 $ 650.00
$
2,240.00
end of year D $ 410.00 J $ 1,200.00
$
2,450.00
paid -in capital
beginning of year $ 155.00 $ 172.00 N
$
2,200.00
end of year C $ 155.00 H $ 232.00
$
2,660.00
total assets
beginning of year $ 360.00 F $ 1,072.00 L
$
5,110.00
end of year $ 700.00 $ 1,570.00 M
$
6,000.00
total liabilities
beginning of year A $ 95.00 $ 250.00 $ 670.00
end of year B $ 135.00 G $ 138.00 $ 890.00
7
tabler-icon-diamond-filled.svg

Paraphrase This Document

Need a fresh take? Get an instant paraphrase of this document with our AI Paraphraser
Document Page
Excel Sheet with formula view:
Report Case 1 Case 2 Case 3
revenue 600 K
=E10+E7+E8-
E9 2040
expenses 300 300 1480
dividends declared 0 45 Q
=G6-G7-
G10+G9
additional investment by
stockholders 0 60 460
net income E =C6-C7 550 P =G14-G13
retained earnings
beginning of year 110 650 2240
end of year D =C13+C10 J =E13+E10 2450
paid -in capital
beginning of year 155 172 N =G18-G9
end of year C =C17 H =E17+E9 2660
total assets
beginning of year 360 F
=E13+E17+E2
5 L
=G25+G17+G1
3
end of year 700 1570 M
=G26+G18+G1
4
total liabilities
beginning of year A
=C21-C13-
C17 250 670
end of year B
=C22-C18-
C14 G =E22-E18-E14 890
Answer 9:
Accounts with normal debit balances
ï‚· Cash Account
ï‚· Investments
ï‚· Accounts Receivables
ï‚· Inventory
Accounts with credit balances
8
Document Page
ï‚· Loans and Borrowed account
ï‚· Share Capital
ï‚· Accounts payable
ï‚· Unpaid Expenses
Answer 10:
Normal View
Trial balance of Croatia Deliveries
as on 30 June 2017
Accounts Name Debit Credit
Capital $ 917,115.00
Insurance Expenses $ 4,500.00
Accounts Payable $ 35,640.00
Service Revenue $ 123,456.00
Building $ 480,760.00
Supplies Expenses $ 1,980.00
Cash $ 27,601.00
Salary Expenses $ 139,358.00
Trucks $ 302,348.00
Fuel Expenses $ 58,000.00
Drawings $ 27,500.00
Electricity Expenses $ 8,760.00
Accounts Receivable $ 28,760.00
Bills Payable $ 34,900.00
Supplies $ 3,654.00
Equipment $ 27,890.00
Total $ 1,111,111.00 $ 1,111,111.00
Formula View:
Trial balance of Croatia Deliveries
as on 30 June 2017
Accounts Name Debit Credit
Capital =917115
Insurance Expenses 4500
Accounts Payable 35640
Service Revenue 123456
Building 480760
9
Document Page
Supplies Expenses 1980
Cash =27601
Salary Expenses =139358
Trucks 302348
Fuel Expenses 58000
Drawings 27500
Electricity Expenses 8760
Accounts Receivable 28760
Bills Payable 34900
Supplies 3654
Equipment 27890
Total =SUM(C6:C21) =SUM(D6:D21)
Trial Balance after making the changes
Trial balance of Croatia Deliveries
as on 30 June 2017
Accounts Name Debit Credit
Capital $ 917,115.00
Insurance Expenses $ 4,500.00
Accounts Payable $ 35,640.00
Service Revenue $ 121,956.00
Building $ 480,760.00
Supplies Expenses $ 1,980.00
Cash $ 27,601.00
Salary Expenses $ 138,608.00
Trucks $ 301,598.00
Fuel Expenses $ 58,000.00
Drawings $ 27,500.00
Electricity Expenses $ 8,760.00
Accounts Receivable $ 28,760.00
Bills Payable $ 34,900.00
Supplies $ 3,654.00
Answer 11:
Blank Crossword
10
tabler-icon-diamond-filled.svg

Secure Best Marks with AI Grader

Need help grading? Try our AI Grader for instant feedback on your assignments.
Document Page
Clues:
Across:
A: Accounting software facilitates recording business ___________
Down:
A: The basic accounting ______________ is Assets = Liabilities + Owner's Equity.
B: An entry to the left-side of an account.
C: The financial statement that reports the revenues and expenses of a company for a period
of time is the ________________ statement.
D: Some people refer to the income statement as the profit and ______ statement
Solved Crossword
D
E E
Q B L
U I O
T R A N S A C T I O N S
T N S
I C
O O
N M
E
11
Document Page
Answer 12:
Two different types of adjustment entries
A: Prepayments of expenses
Example: Prepayment of Electricity expenses account 1500
To cash account 1500
B: Unearned Income
Example: Unearned Interest Income account 1200
To Interest income account 1200
Answer 13:
Current liabilities are the short-term liabilities of a business entity that needs to be
settled down within 12 months of date in balance sheet such as account payable and taxes. On
the other hand, non-current liabilities are long-term liabilities that business entity is not
required to meet within 12 months from the reporting date such as bank loans and bonds
(Robinson, Greuning, Henry and Broihahn, 2008).
Answer 14:
The current ratio depicts the short-term liquidity position of a business entity and is
measured by considering the current assets relative to the current liabilities (Robinson,
Greuning, Henry and Broihahn, 2008). For example, the current asset of an entity is 1000 and
current liabilities are 500 then current ratio is calculated as:
Current Ratio=Current Assets/Current Liabilities
Current Ratio =1000/500
Current Ratio =2
Answer 15:
Normal View:
12
Document Page
Colossal Motors
Trial Balances at 30 June 2017
Accounts Name Trial Balance End of Peroid Adjustment Adjustment Tria
Debit Credit Debit Credit Debit
Cash $ 54,670.00 $ 54,670.00
Accounts Receivables $ 131,560.00 $ 131,560.00
Supplies $ 17,560.00 $ 17,110.00 $ 450.00
Prepaid Insurance $ 3,456.00 $ 400.00 $ 3,056.00
Equipments $ 347,000.00 $ 2,860.00 $ 344,140.00
Accumulated Depreciation $ 107,890.00 $
Accounts Payable $ 145,890.00 $
Wages Payable $ 16,789.00 $ 500.00 $
Unearned Service Revenue $ 12,345.00 $ 4,600.00 $
Capital $ 210,802.00 $
Drawings $ 28,900.00 $ 28,900.00
Service Revenue $ 267,890.00 $ 600.00 $ 4,600.00 $
Depreciation $ 2,860.00 $ 2,860.00
Wages Expenses $ 165,900.00 $ 500.00 $ 166,400.00
Insurance Expenses $ 400.00 $ 400.00
Utilities Expenses $ 12,560.00 $ 12,560.00
Accured Service Revenue $ 600.00 $
Supplies Expenses $ 17,110.00 $ 17,110.00
Total $ 761,606.00 $ 761,606.00 $ 26,070.00 $ 26,070.00 $ 762,106.00 $
Profit/(Loss) of the year
Formula View:
13
tabler-icon-diamond-filled.svg

Paraphrase This Document

Need a fresh take? Get an instant paraphrase of this document with our AI Paraphraser
Document Page
Colossal Motors
Trial Balances at 30 June 2017
Accounts Name Trial BalanceEnd of Peroid AdjustmentAdjustment Trial BalanceIncome StatementBalance Sheet
Debit Credit Debit Credit Debit Credit Debit Credit Debit Credit
Cash ### ### ###
Accounts Receiv ### ### ###
Supplies ### ### ### ###
Prepaid Insuran ### ### ### ###
Equipments ### ### ### ###
Accumulated Depreciatio ### ### ###
Accounts Payable ### ### ###
Wages Payable ### ### ### ###
Unearned Service Reven ### ### ### ###
Capital ### ### ###
Drawings ### ### ###
Service Revenue ### ### ### ### ###
Depreciation ### ### ###
Wages Expenses ### ### ### ###
Insurance Expenses ### ### ###
Utilities Expense ### ### ###
Accured Service Revenue ### ### ###
Supplies Expenses ### ### ###
Total ### ### ### ### ### ### ### ### ### ###
After making the changes
14
Document Page
Colossal Motors
Trial Balances at 30 June 20
Accounts Name Trial Balance End of Peroid Adjustment Adjustme
Debit Credit Debit Credit Debit
Cash $ 9,670.00 $ 9,670.0
Accounts Receivables $ 131,560.00 $ 131,560.0
Supplies $ 17,560.00 $ 17,110.00 $ 450.0
Prepaid Insurance $ 3,456.00 $ 400.00 $ 3,056.0
Equipments $ 302,000.00 $ 2,860.00 $ 299,140.0
Accumulated Depreciation $ 107,890.00
Accounts Payable $ 145,890.00
Wages Payable $ 16,789.00 $ 500.00
Unearned Service Revenue $ 12,345.00 $ 4,600.00
Capital $ 210,802.00
Drawings $ 28,900.00 $ 28,900.0
Service Revenue $ 177,890.00 $ 600.00 $ 4,600.00
Depreciation $ 2,860.00 $ 2,860.0
Wages Expenses $ 165,900.00 $ 500.00 $ 166,400.0
Insurance Expenses $ 400.00 $ 400.0
Utilities Expenses $ 12,560.00 $ 12,560.0
Accured Service Revenue $ 600.00
Supplies Expenses $ 17,110.00 $ 17,110.0
Total $ 671,606.00 $ 671,606.00 $ 26,070.00 $ 26,070.00 $ 672,106.0
15
Document Page
References
Abraham, A., Baets, B., Koppen, M. and Nickolay, B. 2006. Applied Soft Computing
Technologies: The Challenge of Complexity. Springer Science & Business Media.
Lee, T.A. 2014. Evolution of Corporate Financial Reporting (RLE Accounting). Routledge.
Porter, G.A. and Norton, C.L. 2014. Financial Accounting: The Impact on Decision Makers.
Cengage Learning.
Robinson, T., Greuning, H., Henry, E. and Broihahn, M. 2008. International Financial
Statement Analysis. John Wiley & Sons.
Thomson, J. 2008. Lessons learned from ABC. Retrieved 21 August, 2017, from
http://www.theaustralian.com.au/business/business-spectator/lessons-learned-from-
abc/news-story/573a6ff5085d64f7b9c146c87d22d225
16
chevron_up_icon
1 out of 16
circle_padding
hide_on_mobile
zoom_out_icon
logo.png

Your All-in-One AI-Powered Toolkit for Academic Success.

Available 24*7 on WhatsApp / Email

[object Object]