Financial and Managerial Accounting

ACC202 Financial and Managerial Accounting

Tutor-Marked Assignment

July 2022 Presentation

ACC202 Tutor-Marked Assignment

SINGAPORE UNIVERSITY OF SOCIAL SCIENCES (SUSS) Page 2 of 4

TUTOR-MARKED ASSIGNMENT (TMA) This assignment is worth 14% of the final mark for ACC202 Financial and Managerial Accounting. The cut-off date for this assignment is 25 September 2022, 2355 hrs. Note to Students: You are to include the following particulars in your submission: Course Code, Title of the TMA, SUSS PI No., Your Name, and Submission Date. Take note of the following format and writing requirements. Marks will be penalised for failure to follow requirements. Format requirements: • A properly formatted cover page: To include course code, course title, assessment title,

student name(s), student PI Number(s). • For text, Font style: Times New Roman; Font size: 12; Line spacing: 1.5 lines. • Include the page number on each page. • Reference or bibliography at the end (use APA referencing guidelines). Writing requirements: • Develop your points in a clear, logical and succinct manner. • Be mindful of the target audience/reader. Use language appropriate to the reader’s

expected level of knowledge. • Free from grammatical and typographical errors. • Provide in-text citations when referencing (use APA referencing guidelines). • Include less relevant details as an appendix if necessary. • Good overall presentation of the report.

ACC202 Tutor-Marked Assignment

SINGAPORE UNIVERSITY OF SOCIAL SCIENCES (SUSS) Page 3 of 4

Question 1 One of your close friends, Sebastian See, has just started a delivery business. He is having difficulty understanding the purposes of financial statements and how they fit together across time. Required: (a) Write a one-page memo (in not more than 450 words) to Sebastian, explaining the

purposes of financial statements and describing how they are linked across time. (25 marks)

(b) As the economy recovers, Sebastian anticipates an increase in the customer demand.

He decides to approach his banker to discuss a loan for the expansion. Advise Sebastian what key information the banker will be looking for and explain whether this information is available from the financial statements.

(25 marks) Question 2 On 1 July 2022, Andrew Mak started an engineering firm, Excellent Engineering. The following are the transactions that occurred during the first month of operations. 01 Jul. Andrew invested $40,000 cash, and a $64,000 van in the firm.

01 Jul. After much persuasion, Andrew’s aunt transferred $20,000 to Andrew’s

personal bank account as a loan to him.

01 Jul. Andrew invested the $20,000 which he received from his aunt in the firm as his own investment in the firm.

01 Jul. The firm hired Mary as a part-time office assistant for $200 per day, as needed and a technician for $4,000 per month.

01 Jul. The firm paid $8,000 cash for July and August rental and another $4,000 for the rental deposit. The rental deposit is refundable.

01 Jul. The firm paid $960 for 12 months of insurance coverage commencing from 1 July 2022.

05 Jul. The firm purchased $7,200 of supplies on credit from Benito Ltd.

15 Jul. The firm billed Merlion Mall $12,000 for repairs done on its chilling system.

18 Jul. The firm received $4,000 cash from Merlion Mall as partial payment toward its account.

ACC202 Tutor-Marked Assignment

SINGAPORE UNIVERSITY OF SOCIAL SCIENCES (SUSS) Page 4 of 4

23 Jul. The firm received $10,000 cash from Harbour Mall as advance payment for services to be performed in September.

28 Jul. The firm received a telephone bill of $280. Arrangement has been made to pay the bill on 3 August via giro transfer.

31 Jul. The firm paid $4,000 for the technician’s salary of the month while the wages of Mary who has worked for 10 days will be paid on 1 August.

31 Jul. Depreciation of the van and office equipment for the month are $120 and $0 respectively.

Required: (a) Analyse the above and record the necessary entries. Narration is not required.

(30 marks)

(b) Present the trial balance of Excellent Engineering as of 31 July 2022. (10 marks)

(c) From the trial balance, compute the following and show the workings:

(i) Total assets.

(ii) Total liabilities.

(iii) Net profit.

(iv) Total equity

(10 marks)

---- END OF ASSIGNMENT ----