ACCT1008 (Accounting for Business) SP2 2019

ACCT1008 (Accounting for Business) SP2 2019

Assignment Part A

50 Marks – Weighting 10%

Due 9:00am Adelaide time (ACST/ACDT) on Monday 1 April 2019

Please aim to complete this assignment a few days prior to the due date to allow for any unforeseen circumstances such as illness, holidays, family issues, work commitments etc. You may submit the assignment early if you have other commitments around the due date.

The due date and time is stated in the subject outline, on the subject website and above. All times listed are local (South Australia) times. Please ensure you factor in any time difference between Adelaide (South Australia) and your location when submitting your assignment, to avoid incurring any late submission penalties.

Please note the following important instructions relating to the assignment format and submission:

IMPORTANT - Failure to follow these instructions may result in your assignment not being marked, so please read them carefully.

1. You must complete your assignment using the assignment Word document provided.

2. There is no need to delete any part of this template.

3. Do not convert this document into any other format (.docx or .doc are the only permissible file formats than can be uploaded).

4. You can only submit this one file.

5. If you use Excel for calculations, ensure you only copy and paste as a table. Do not ‘embed spreadsheets in the assignment Word document.

6. Do not include any files as pictures within the assignment Word document.

7. You cannot scan hand written responses and submit.  All assignments must be word processed. 

8. Remember to fill out the assignment coversheet which is the second page of assignment Word document.

9. All assignments must be lodged via Learnonline page (link located on same page as assignment). 

10. Assignments submitted via e-mail (or any other method) will NOT be accepted.

11. Make sure that you upload the correct file. If you discover (after the due date) that you have uploaded a draft version or the wrong file completely, you will not be allowed to submit a second file.

Note that this is an individual piece of assessment. Pay particular attention to the student declaration which forms part of the coversheet. You must type your name and the date in the appropriate field in this declaration.

Please also be aware that extensions to assignment due dates will only be approved in exceptional circumstances and for reasons that could not have been foreseen at the commencement of the study period. All applications for extensions must be submitted via the “Extensions” link provided on the subject website and must include an explanation of the circumstances under which the extension is being sought and relevant supporting documentation must be included with the original application. Please note that circumstances such as usual workload (university or employment), taking a holiday, being overseas or any situation within the control of the student do not qualify as grounds for an extension.

Please note that extension requests made with 7 days of the due date must also include a draft of the work you have completed to that point.

Best of luck with your assignment.

Accounting for Business Assignment – Learning Outcomes

The Assignment is a further opportunity to apply the knowledge and skills that you are developing. The Assignment also develops learning outcomes which are highly valued by the employers of accounting graduates: Knowledge, Judgement, Critical analysis and Problem solving skills, and Communication skills. Learning outcomes are the knowledge and skills that graduates are expected to know, understand and be able to do as a result of their learning. Go to the Commerce home page to find out more about these important learning outcomes.

Communication skills

Employers want graduates who are strong communicators. Communication skills rank among the most important selection criteria that employers use when recruiting graduates (Source: Graduate Careers Australia). These three aspects of your written communication skills development will be assessed in the assignment to a maximum of 9 marks:

· Paraphrasing,

· Being relevant and the art of selection, and

· An introduction to writing for a professional business audience.

Please refer to the resource Developing written communication skills in Accounting for Business on the subject learnonline site. It has information about the three aspects of your written communication skills development and links to resources that will assist you develop your skills. As you use the resources in your assignment, remember that your studies is the perfect time to start developing these skills and appreciating their importance in your career.

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	Assignment Cover Sheet
An Assignment Cover Sheet must be included with each assignment submitted.

Name:
Student ID:
Email:
Course code and title:
School:	Program Code:
Course Coordinator:	Tutor:
Day, Time, Location of Tutorial/Practical:
Assignment number:	Due date:
Assignment topic as stated in Course Outline: Assignment Part A

Student Declaration
I declare the work contained in this assignment is my own, except where acknowledgement of sources is made. I authorise the University to test any work submitted by me, using text comparison software, for instances of plagiarism. I understand that this will involve the University or its contractor copying my work and storing it on a database to be used in future to test work submitted by others. I understand that I can obtain further information on this matter at http://w3.unisa.edu.au/ltu/integrity/default.asp Note: The attachment of this statement on any electronically submitted assignments will be deemed to have the same authority as a signed statement.
Student Signature: Type your name here	Date:

OFFICE USE ONLY
Date received:	Received by:
Academic staff member:	Assessment/grade:

QUESTION 1: General Journal, General Ledger, Trial Balance (34 marks)

Part 1 (19 marks)

Required

Record the General Journal entries in the proforma provided on the following pages to record each of the following transactions (where required). Remember to format the journals correctly and include narration (explanation) for each journal entry.

Bella Vista is the sole proprietor of Oceanview Beach House Hire. Bella has been successfully operating Oceanview Beach House Hire, a short-term beachside accommodation business, for the last six years. The business has managed twenty beachside houses which can accommodate from two up to twenty guests. Bella has been so busy with the management of the business that she has been unable to attend to the bookkeeping, so she has recently hired Pompano & Tarpon Accounting Solutions Pty Ltd to take over the accounting function.

You are a graduate accountant working at Pompano & Tarpon Accounting Solutions Pty Ltd and have been given responsibility for preparing the monthly general journal entries for Oceanview Beach House Hire. The following is a list of transactions that took place during the month of February 2019 that you need to record.

Feb 1 Oceanview Beach House Hire has taken a booking for three beach houses from Aba Daba Doo bank who are hosting a team building event for some of their employees in the last week of February. Aba Daba Doo Bank have booked each of the three houses for 4 nights at a cost of $1,200 per night per beach house. Aba Daba Doo have paid a 40% deposit in cash and they will pay the remaining amount when they arrive.

Feb 2 Oceanview Beach House Hire paid $367 to Spadefish Plumbing for clearing the plumbing blockage in the beach house “Searobin” caused by excessive amounts of sand going into the shower drain.

Feb 4 Oceanview Beach House Hire purchased one new 16 person dining table for the beach house “Wahoo” from Jetty Plank Furniture Pty Ltd. The dining table cost $2,500, 75% of the purchase was paid for in cash, with the balance payable in 30 days.

Feb 5 Remora Movers Ltd, a furniture delivery business who delivered the new 16-person dining table (purchased on 4 February) to the beach house “Wahoo”, sent an invoice (#8923) to Oceanview Beach House Hire for $380 which has payment terms of 30 days.

Feb 11 Oceanview Beach House Hire purchased a new software program called “Easy Bookings” to assist Bella in making accommodation bookings across the 20 beach houses. It will also be available on the Oceanview Beach House Hire website for prospective clients to see what properties are available and when and to make their own bookings subject to a review by Bella. This functionality is expected to increase future beach house hire bookings. Bella expects the software to be used for at least the next five years. The Easy Bookings software program cost $1863 and was paid in cash.

Feb 17 Oceanview Beach House Hire paid the remaining 25% they owed Jetty Plank Furniture for the table they purchased on 4 February.

Feb 18 Bella Vista visited a physiotherapist for a sore shoulder as a result of an injury sustained while doing yoga. She paid $85 for the appointment using the business bank account.

Feb 27 Oceanview Beach House Hire received the remaining amount owed by Aba Daba Doo Bank when their employees arrived.

General Journal

Date	Details	Debit ($)	Credit ($)

Date	Details	Debit ($)	Credit ($)

Part 2 (10 marks)

The following general journal entries for the business Oceanview Beach House Hire have been prepared by you for transactions occurring in March 2019, however you have not yet posted them to the General Ledger.

Required

Post the journals provided to the General Ledgers provided.

All ledgers below must be “footed” (i.e. the balance must be made clear either by the wording ‘balance’ next to the amount, a circle around the balance or the more formal ‘c/d’ ‘b/d’ notations).

Hints to assist in completing the ledgers:

· Do not delete the opening balances provided.

· The ledgers are formatted using tables therefore it is best to navigate through the ledgers using the ‘tab’ function.

· When using tables, it is often easier to click on the “¶” function so you can see the formatting.

· It is acceptable to shorten the account names in descriptions i.e. Cash at Bank = CAB

Date	Details	Debit ($)	Credit ($)
2 March	Outdoor Furniture	4 500
	Cash at Bank		3 200
	Accounts Payable		1 300
	(Purchased a new Hammock for each of the beach houses)
4 March	Market stall Hire	250
	Cash at Bank		250
	(Hired a stall at the March Beach Market to promote their business)
6 March	Drawings	1 500
	Cash at Bank		1 500
	(Bella withdrew money from the business bank account for her own use)
11 March	Cash at Bank	870
	Hire Fees		870
	(Mr and Mrs Trout paid Beach house hire fees for two nights in the “Coast View” Beach house)
16 March	Fridges	24 200
	Cash at Bank		12 100
	Loan		12 100
	(Purchased a new fridge for each of the beach houses with cash and a loan from Aba Daba Doo Bank)
19 March	Microwave	755
	Capital		755
	(Bella contributed a microwave from her home which she had not used to the business)
24 March	Insurance	14 950
	Cash at Bank		14 950
	(Paid for their public liability insurance policy in cash)
30 March	Accounts Payable	950
	Cash at Bank		950
	(Partially paid an amount owing to PalmCove Furniture Pty Ltd for Hammocks purchased on the 2 March)

Cash at Bank (CAB)

March 1	Balance	167 154

Outdoor Furniture

March 1	Balance	138 112

Fridges

March 1	Balance	13 180

Microwave

Accounts Payable

			March 1	Balance	8 250

Loan

			March 1	Balance		1 962

Drawings

March 1	Balance	40 260

Capital

			March 1	Balance	155 623

Hire Fees

			March 1	Balance	386 915

Market Stall Hire

Insurance

March	Balance	9 960

Part 3 (5 marks)

Required:

Post the updated General Ledger balances calculated in Part 2 to the Trial Balance below.

Total both the debit and credit columns on completion.

NOTE: you are not required to prepare any financial statements from this Trial Balance

Oceanview Beach House Hire

Trial Balance

31 March 2019

Account Name	Debit ($)	Credit ($)
Electricity Expense	10 998
Telephone Expense	1 866
Fridges
Cash at Bank
Cleaning Expense	3 960
Accounts Payable
Office Supplies Expense	2 056
Drawings – B. Vista
Market Stall Hire
Water Expense	3 193
Capital – B. Vista
Accounts Receivable	39 703
Loan
Accumulated Depreciation – Fridges		6 387
Stock	78 307
Outdoor Furniture
Hire Fees
Accumulated Depreciation – Computer		6 025
Computer	26 554
Discount Allowed	1 103
Accumulated Depreciation - Outdoor Furniture		23 025
External Repairs and Maintenance	45 899
Sales Returns & Allowances	567
Tiling Expense	5 315
Microwave
Insurance
Totals

QUESTION 2: Conceptual Framework (10 marks)

Bella Vista (the client) has written to the Managing Partner of the accounting firm you work for as a graduate accountant because she is confused about one of the transactions you recorded in March 2019 (refer to Question 1 Part 2). Bella also has a general enquiry regarding financial statements in general.

As part of your ongoing professional development, the Managing Partner (Marc Pompano) has asked you to prepare a formal business letter addressed to him, in which you will respond to Bella’s questions. If he is satisfied with your explanations, this letter will then be used to respond to the client (Bella).

REQUIRED:

On the following page, write a letter in your own words (using the Harvard** referencing system wherever appropriate) addressed to the Managing Partner of your accounting firm, responding to the following questions from Bella Vista:

· Explain with reference to the appropriate accounting definition the accounting element* that was debited on the 2 March 2019 and explain how this definition was applied when recording the transaction. (4 marks) *(element = Asset, Liability, Equity, Income or Expense)

· Bella would like a clear explanation of how the information provided by a Balance Sheet differs from the information provided by an Income Statement, as she is unsure of how to use the information in her decision making. Bella understands that one of these statements shows the financial position of the business and one the financial performance but would like you to explain which statement shows each of these. (3 marks)

The remaining 3 marks will be awarded for following the formatting requirements below.

· Date your letter the 3rd of April 2019

· Address your letter to Marc Pompano (Managing Partner), Pompano & Tarpon Accounting Solutions Pty Ltd, 12 Coast Lane, Port Elliot, SA, 5212

· Any formal business letter format is acceptable (a template has not been provided - students are expected to research business letter formats themselves).

· Set out your letter with subheadings to separate each part of your letter as you address the criteria required.

· Consider an appropriate way to begin and end your letter (consider the context of the letter).

· The use of appropriate language, accounting terminology and reference in your letter to the specific information presented in the question.

· No specific word count is prescribed. However, given the nature of the question, it would be expected that the entire letter (including address and sign-off) should require no more than a full page.

Q2 letter here (delete this heading before submission)

Reference List

Please list any references used to complete this assignment.

**The Harvard referencing system must be followed. Please see link below for more information:

Referencing @ UniSA

WRITTEN COMMUNICATION SKILLS

6 marks in total will be awarded for the following aspects of students’ written communication skills development:

PARAPHRASING

· Presenting ideas and information that the student read in their own words,

· Not simply taking what someone else has written and changing a few words. It is about translating another person’s ideas into the student’s own words.

Mark (maximum 2):

BEING RELEVANT

Does what is written contribute to answering the question(s)

· Setting out to specifically answer the question(s) by using relevant information,

· Staying ‘on track’ with answers,

· Avoiding straying from the question and going off on irrelevant tangents.

Mark (maximum 2):

WRITING FOR A PROFESSIONAL BUSINESS AUDIENCE (including good presentation)

· The written work is clear and understandable,

· Where applicable, the written work is based on the facts and available evidence,

· Exaggeration and bold statements which are not supported by the facts and evidence are avoided.

Good presentation

· The written work contains no spelling and grammatical errors. Obvious evidence of editing displayed. (Where the work contains any spelling and grammatical errors, it cannot be awarded more than 5 marks),

· Any headings and sub-headings display properly, and are used consistently throughout the document,

· Page numbering is used. It is usual for page numbering to commence on page 2 of a business document as “2”,

· Font size and font style are used consistently throughout the document,

· If applicable, requested templates are used.

Mark (maximum 2):

TOTAL WRITTEN COMMUNICATION SKILLS MARK (maximum 6)

14