Bap12/120 Accounting for Business

Bap12/120 Accounting for Business

Principles of Accounting

BAP 11

Assignment1 2013

Semester 3

Class Day/Time: ______

Due Date:Week 6Friday 17th January2014

Time:5 PM

Total marks for all questions 75

Weight:25%

This is an individual assignment.
The assignment consists of 6 questions all of which are to be attempted. Please submit into Moodle directly, by the due date. Late submissions will attract a penalty of 5% for each day it is late.

This assignment must be your own work and submitted with an assignment cover sheet.
Question 1. 25 marks

The following questions are required to be answered relate to the course text

Questions

a)Statement of Cash flows direct method Chapter 18 ;

Required

  1. Prepare a cash flow statement using the direct method for operating cash flows
  2. Prepare a reconciliation of the [profit and cash provided by the operations

b)Bank reconciliation 5 marks

Required prepare a bank reconciliation for the Month ended the 31 March 2001

c)Accounting for Shares 10 marks

Demons Ltd issued a prospectus for the issue of 100,000 $5.00 shares on 1 January2012.The prospectus required payment of $3.00 per share on application and $2.00 to be paid when called.

The company received applications for 120,000 shares by the closing date of 28February 2012.100,000 shares were issued on 1 March 2012 with excess application money being refunded.

On 30 April 2012 the company called the balance of $2.00 on the shares.All call money was received by 15 May 2012.On 30 June 2012 Demons Ltd declared and paid a dividend of 5 cents per share.

Required:

Prepare the journal entries for the year ended 30 June 2012 to account for the abovetransactions.

d)Accounting for Liabilities 5 Marks

Easy Company Ltd issues a debenture at a premium for a period of 10 years the company pays interest on 31 December and 1 July. The debenture has a par value of $1,000,000.00 and is issued at premium of 105 at an interest rate of 9%

Prepare journal entries to reflect the following;

  1. issue of debentures on 1-July
  2. payment of interest on 1 January
  3. accrual on 31 March

e)Accounting for Inventory10 marks

f)Analysis of Accounting Information 10 Marks

g)Preparation of production and cash budget 10 marks

Budget data
unit sales
January / 25,000.00
February / 30,000.00
March / 32,000.00
selling price / $ 10.00 / per unit
cash sales / 20% / during month of sale
Collections on account / 50% / in month of sale
Collections on account / 25% / after month of sale
Amount uncollectable / 5%
balance on accounts receivable at 1 January / $ 420,000.00
Of which $350,000 relates to December sales and the remainder related to November sales
5% of the total balance is uncollectable
1 / prepare sales budget for the quarter
2 / prepare cash collections budget for the quarter
3 / Calculate the balance in accounts receivable at the end of March

Principles of Accounting BAP11Page 1 of 7

AssignmentSemester 3, 2013

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