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Assignment 1 Balance Day Adjustments & Closing
| Student | |||
| ID Number | Contact Number | ||
| Name |
| Teacher Name |
| Unit Details | |
| Unit Code | Unit Title |
| BSBFIA401 | Prepare Financial Reports |
| Assessment Task | |
| Title | Due Date |
| Assignment 1: Balance Day Adjustments & Closing | As per unit outline |
| Extension Details (where applicable) | |
| Extension Date for Submission Granted Until |
| STUDENT DECLARATION | |||
| I have completed this assessment I am aware that penalties exist for plagiarism. Refer to the Plagiarism and Misconduct page. I have a copy of this assessment | |||
| STUDENT SIGNATURE: | DATE: | ||
|
For electronic submissions only: By typing your name in the student signature field, you are accepting the above declaration. |
| Section 1 – Student and Assessor Instructions | |
| Conditions | This is an individual open book assessment, to be completed after you have finished up to and including chapter 3. Download the assessment document and stationary (provided in the answer booklet) from Canvas and complete the general journal entries and general ledgers as instructed to: Record the Balance days adjustments, and Close the ledger at the end of the accounting period Save in Microsoft Word format (or Excel) and upload your assignment via Canvas. If you have any questions about the task, please speak with your teacher prior to undertaking the assessment.  |
| Task Overview and/or Description | Instructions Complete the two questions using the information and stationery provided.
Assessment Description This assessment will demonstrate your understanding of the processes involved in: Recording balance day adjustments into the journals, and Closing the ledger accounts at the end of the accounting period. As the ‘bookkeeper’ you should be able to demonstrate that you can: Record depreciation of non-current assets Adjust expense accounts and revenue accounts for prepayments and accruals Record bad and doubtful debts Adjust ledger accounts for inventories, if required, and transfer to final accounts Make general journal entries for balance day adjustments in the general ledger system Post revenue and expense account balances to final general ledger accounts Prepare final general ledger accounts to reflect gross and net profits for reporting period All in accordance with organisational policy, procedures and accounting requirements |
| Section 2 – Assessment Task: Submission Information | |
| Submission Details | Submit the following: Submit your completed general journals and general ledgers for review. Before submitting please check that: – You have recorded ALL the Balance Day Adjustments You have recorded all entries necessary to close the ledgers at the end of the period That all general journal entries have narrations That you have prepared the Capital, Trading and Profit and Loss general ledger accounts for question 2.
The assessment task must be submitted directly to your teacher, via canvas with the cover page completed. Ensure to include on the front page of your assessment: your name student ID your teacher’s name Submissions received after the submission date must be approved by your teacher. |
| Section 3 – Assessment Task Criteria and Outcome | |||
| All items/criteria must be demonstrated satisfactorily to achieve this task. The items/criteria for this activity will be assessed as S – Satisfactory or US – Unsatisfactory. | |||
| Required Evidence | S | US | |
| 1 | Record depreciation of non‑current assets in accordance with organisational policy, procedures and accounting requirements. | ||
| 2 | Adjust expense accounts and revenue accounts for prepayments and accruals | ||
| 3 | Record bad and doubtful debts in accordance with organisational policy, procedures and accounting requirements | ||
| 4 | Adjust ledger accounts for inventories, if required, and transfer to final accounts | ||
| 5 | Make general journal entries for balance day adjustments in general ledger system in accordance with organisational policy, procedures and accounting requirements | ||
| 6 | Post revenue and expense account balances to final general ledger accounts system | ||
| 7 | Prepare final general ledger accounts to reflect gross and net profits for reporting period |
| Feedback to Student |
| Feedback will be provided to you in Canvas via comments and/or the Rubric. |
| Section 4 – General Assessment Information |
| Refer to the Course Information section in Canvas. |
Assessment Question 1 – Balance Day Adjustments
Luke Nu, has provided you with the following information in relation to his business Normandy Traders, for the year ended 30 June 2020.
You are required to:
- Prepare General Journal entries to record the balance day adjustments at 30 June 2020
- include a brief narration for each journal
- All work must be carried out in accordance with Normandy Traders policies and procedures which are available in Canvas.
Information regarding the balance day adjustments:
- Tax Invoice No. ZZ519 for the sale of stock – dated 31 March 2020 – for $935 (incl. GST) was omitted from the Sales Journal and needs to be recorded before year end.
- Rates expense owing but not yet paid by the business, $700 (GST Free)
- Advertising Expenses of $13,200 (incl. GST) were paid on April 1st 2020 for the 12 months (April 1, 2020 to March 31, 2021).
- A clients rent is overdue by 3 months as at June 30, 2020. The 6-monthly amount is $9,900 (incl. GST).
- The business owes its employees unpaid wages for the days 27-30 June 2020: This amounts to a total of $4,750.
- A client has prepaid a deposit for work that is to be carried out in August 2020 (the next financial year!) The amount is $1,100 (incl. GST). This affects the Project Fees (Income) Account.
- Computer equipment is to be depreciated at 25%p.a. reducing balance (Original Cost is $30 000; Accumulated Depreciation is $7,500).
- Debtors total was $54,600, however, an additional bad debt of $825 (incl. GST) still needs to be accounted for. This amount relates to goods sold during the current year.
- Allowance for Doubtful Debts was $1,200. This now needs to be at 4% of total debtors after additional bad debts have been recorded.
- Depreciate motor vehicles at 20% p.a. Straight Line. (Original Cost is $100,000 and accumulated depreciation to date is $40,000).
- The business buys it stationary in bulk. A stock take has shown that there is unused stationery on hand of $950. The opening balance of Stationery was $350. Purchases of stationery during the year were $5,300.
- Currently the Provision for Long Service Leave is at $34,000. This needs to be increased to $48,000.
- Create a provision for annual leave of $15,000.
Question 2 – Closing the Ledger
You have been asked to help a friend of Luke’s close off their accounts for the year to determine if they have made a profit.
They have presented you with the following trial balance, after all entries for balance day adjustments had been recorded in the general ledger.
Using the information, you are required to:
- Prepare general journal entries to close the ledger as 30 June 2020
- Post the closing entries to the Capital, Trading and Profit & Loss ledger accounts
Jamieson Trading Co.
Adjusted Trial Balance as at 30 June 2020
| Debit | Credit | |
| $ | $ | |
| Accounts Receivable | 45,300.00 | |
| Accounts Payable | 22,700.00 | |
| Accrued Income | 3,650.00 | |
| Accrued expenses | 5,850.00 | |
| Accumulated Depreciation – Motor Vehicles | 45,000.00 | |
| Accumulated Depreciation – Computer Equip | 10,200.00 | |
| Allowances for Doubtful Debts | 3,120.00 | |
| Advertising | 12,500.00 | |
| Bank Fees and Charges | 750.00 | |
| Bad Debts | 900.00 | |
| Capital: S Jamieson | 240,000.00 | |
| Cartage Inward | 10,300.00 | |
| Cash at bank | 15,000.00 | |
| Commission Income | 9,500.00 | |
| Computer Equipment | 40,000.00 | |
| Customs Duty | 9,800.00 | |
| Delivery expenses | 8,750.00 | |
| Depreciation – Motor Vehicles | 15,000.00 | |
| Depreciation – Computer equipment | 6,500.00 | |
| Discount Expense | 3,450.00 | |
| Doubtful Debts | 2,500.00 | |
| Drawings | 14,230.00 | |
| GST Collected | 8,650.00 | |
| GST Paid | 5,450.00 | |
| Insurance – General | 6,500.00 | |
| Interest on Loan | 7,800.00 | |
| Land and buildings | 425,000.00 | |
| Long Term Loan | 50,000.00 | |
| Motor Vehicles | 80,000.00 | |
| Motor Vehicle Expenses | 10,250.00 | |
| Office Wages | 32,600.00 | |
| Petty Cash | 400.00 | |
| Prepaid Income | 12,400.00 | |
| Prepaid Expenses | 6,700.00 | |
| Provision for Annual Leave | 12,000.00 | |
| Provision for Long Service Leave | 38,000.00 | |
| Purchases Returns and Allowances | 4,800.00 | |
| Purchases | 375,650.00 | |
| Rental Income | 9,870.00 | |
| Rates expense | 850.00 | |
| Sales Returns and Allowances | 7,860.00 | |
| Sales | 765,000.00 | |
| Stock (1/7/19) | 89,400.00 | |
| Total | 1,237,090.00 | 1,237,090.00 |
Additional Information: Stock as per stocktake 30 June 2020 is $78,500