Accounting Systems and Processes: Comprehensive Homework Solution

This document presents a comprehensive solution to an accounting systems and processes assignment, covering a range of topics. The solution begins with an explanation of cell naming in spreadsheets and how they are used in calculations, including gross profit. It then moves on to discuss the representation of negative numbers, separation of data and report areas, and the use of IF functions in spreadsheets. The assignment also delves into periodic inventory systems, worksheet and financial report views, and the application of inventory flow assumptions. Further sections address bank reconciliation, journalizing accounts receivable entries, estimating bad debts using direct write-off and allowance methods, and evaluating a firm's financial position using financial statements like income statements and balance sheets. The document also covers the dishonor of a note receivable and concludes with a work-integrated assessment case study analyzing Wesfarmers Limited's financial performance, including its return on equity, earnings per share, and corporate governance practices. The solution includes journal entries, formulas, and explanations to facilitate understanding of the concepts discussed.

Running head: ACCOUNTING SYSTEMS AND PROCESSES
Accounting Systems and Processes
Name of the Student:
Name of the University:
Author Note:

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Table of Contents
Question 1........................................................................................................................................2
Naming cells in spreadsheets...........................................................................................................2
Question 2........................................................................................................................................2
Negative numbers............................................................................................................................2
Question 3........................................................................................................................................3
Separation of data and report areas..................................................................................................3
Question 4........................................................................................................................................4
IF Functions.....................................................................................................................................4
Question 5........................................................................................................................................5
Periodic systems..............................................................................................................................5
Question 6........................................................................................................................................6
Worksheet and financial reports......................................................................................................6
Question 7......................................................................................................................................12
Application of inventory flow assumptions...................................................................................12
Question 8......................................................................................................................................17
Bank Reconciliation.......................................................................................................................17
Question 9......................................................................................................................................18
Journalizing accounts receivable entries.......................................................................................18

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Question 10....................................................................................................................................19
Estimating bad debts......................................................................................................................19
Question 11....................................................................................................................................20
Evaluation of firm’s financial position..........................................................................................20
Question 12....................................................................................................................................21
Dishonor of a note receivable........................................................................................................21
Question 13....................................................................................................................................21
Work Integrated Assessment case study........................................................................................21
Reference List................................................................................................................................25

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Question 1
Naming cells in spreadsheets
A cell reference means a cell or a range of cells that is present on a spreadsheet as well as
can be used in a formula so that Microsoft Office Excel can be found values or data where
formula is calculated. It is important to discuss naming cells in spreadsheets. Cell references can
be replaced by names for the purpose of correlating the calculation (Zhang & Ni, 2016).
Calculation of Gross Profit:-
Particulars Amount
Sales Revenue $17000
Less: Cost of Goods Sold $5000
GROSS PROFIT $22000
Question 2
Negative numbers
Negative numbers can be represented by using minus sign or by highlighting it with red
color (Reimers, 2013). The first step is selecting the cell or range of cells that need to be

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formatted with a negative number style. The next step is pressing Ctrl+1 and then clicks on
number or currency. To that, under negative number, it is required to select an option for
negative numbers.
Question 3
Separation of data and report areas
Accountants design spreadsheets as it help in analyzing data as well as tracking
information for performing calculations for financial reporting purposes. Use of spreadsheet
provides flexibility needed for people for performing their job duties effectively. Spreadsheets
lack the imbedded data as well as logical security controls that are found in other applications.
For example, in a typical small or mid-sized business enterprise, hundreds of spreadsheets may
be incorporated into planning as well as reporting process. Spreadsheets support journal entries,
balances, transaction amounts as well as disclosures and other financial reporting elements. It

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supports key financial reporting controls for assessing risk potential (Odar, Kavčič & Jerman,
2015).
Question 4
IF Functions
IF Function is considered as one of the popular function of Microsoft Excel as it allows
individuals to make logical comparisons between values as well as what other expect. IF
function can have two results where the first result is if the comparison is true, then the second
result is false (Nobles, Mattison & Matsumura, 2013).
PERIOD Particulars Amount Remarks
Jan'16
Sales Revenue, less,
Total Expenses 22000
=IF(C7>0,"NET
PROFIT","NET LOSS")
Feb'16 Sales Revenue, less, -10000 =IF(C8>0,"NET

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Total Expenses PROFIT","NET LOSS")
Question 5
Periodic systems
Periodic inventory system is one of the inventory systems that updates inventory at the
end of each period of time. This inventory system helps in keeping track of inventory on periodic
basic. No effort is actually needed for keeping updated data records of either inventory or cost of
goods sold. This inventory system records the journal entries at the end of accounting period
(Klychova, Faskhutdinova & Sadrieva, 2014).

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Question 6
Worksheet and financial reports
Normal View

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Formula view

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