Accounting System and Process: Finance Homework - University Solution

This document presents a comprehensive solution to an accounting system and process assignment. It covers a wide range of topics, including the use of cell references and formulas, formatting of negative numbers, differentiating data and report areas, application of IF functions, and the periodic inventory system. The assignment further delves into the creation and analysis of ten-column adjusted worksheets, income statements, and balance sheets, alongside inventory and gross profit calculations. It includes bank reconciliation, journal entries for accounts receivable, and the allowance and write-off methods for uncollectible amounts. The document also analyzes account receivables to assess solvency and provides journal entries for a given scenario. Finally, it examines Wesfarmers group's businesses, including their income statement, balance sheet, financial ratios (dividends, EPS, ROE), risk mitigation, and corporate governance, concluding with an investment decision recommendation based on the company's financial performance.

Running head: ACCOUNTING SYSTEM AND PROCESS
Accounting system and process
Name of the university
Subject code and name
Student name and student ID number
Assignment task number
Author note

1ACCOUNTING SYSTEM AND PROCESS
Table of Contents
Question 1...............................................................................................................................................................2
Question 2...............................................................................................................................................................2
Question 3...............................................................................................................................................................3
Question 4...............................................................................................................................................................3
Question 5...............................................................................................................................................................4
Question 6...............................................................................................................................................................4
Question 7...............................................................................................................................................................8
Question 8...............................................................................................................................................................9
Question 9.............................................................................................................................................................11
Question 10...........................................................................................................................................................11
Question 11...........................................................................................................................................................12
Question 12...........................................................................................................................................................12
Question 13...........................................................................................................................................................12
Reference...............................................................................................................................................................16

2ACCOUNTING SYSTEM AND PROCESS
Question 1
To enable the user to use various formulas the cell references are given the names. Example of liabilities
+ owner’s equity = assets are as follows
Question 2
Negative numbers are shown with bracket to make it more visible and clear. Example for negative
number in bracket is as follows –

3ACCOUNTING SYSTEM AND PROCESS
Question 3
Data area and report area are separately presented to differentiate the processed data and the
unprocessed data (Odar, Kavčič & Jerman, 2015).
Example showing the report area and data area is as follows –
Question 4
IF functions are utilised to set a command for recognizing that whether a particular condition is satisfied
or not (Song & Joo, 2015)
Example of IF function in trial balance is as below –
Normal view -

4ACCOUNTING SYSTEM AND PROCESS
Formula view –
Question 5
The periodic system of inventory does not update the record after each transaction of sales or purchase,
rather it updates the transaction at the end of every closing period (Drury, 2013).
For example,

5ACCOUNTING SYSTEM AND PROCESS
Question 6
Ten column adjusted worksheet
Normal view –
Income statement – normal view

6ACCOUNTING SYSTEM AND PROCESS
Balance sheet – normal view

7ACCOUNTING SYSTEM AND PROCESS
Ten column adjusted worksheet – formula view
Income statement – formula view

8ACCOUNTING SYSTEM AND PROCESS
Balance sheet – formula view

9ACCOUNTING SYSTEM AND PROCESS
Spreadsheet can be used for various accounting purposes like –
 Formatting the data
 Correlating data
 Formulate data
Question 7
Inventory as per normal view –
Gross profit as per normal view –

10ACCOUNTING SYSTEM AND PROCESS
Inventory as per formula view –
Gross profit as per formula view –
After changing the data
Gross profit calculation -
Question 8
Bank reconciliation under normal view –

11ACCOUNTING SYSTEM AND PROCESS
Formula view –
With revised data –