ABKA345 Accounting Equation, Revenue, Expenses, and Asset Valuation Assessment | The Career Academy NZ

Accounting Equation, Revenue, Expenses, and Asset Valuation Assessment

Read through the requirements below, complete all parts of the assessment and then save your work as an Excel spreadsheet. Once you have saved your work click on the Assessment submissionlink within this course and upload your completed assessment to your tutor for marking.

You must download and open the spreadsheet:Assessment Accounting Principles Template from within this course and use this template to complete the tasks outlined below. There are two parts to this assessment, and you must complete both parts before submitting your assessment for marking.

Part 1 - Pam's Pies

Pam's Pies is a sole trader that sells frozen pies. Further information is provided in the assessment spreadsheet. Required: For the first two requirements you can use 'Pam's Accounting Equation'tab to record the transactions on the accounting equation, it is not compulsory and will not be marked.

Income Tax and GST is not applicable for this question. 

1. Using thetransactionssection on the 'Pam's Information'tab of the spreadsheet you are required to write the journals for each transaction in the 'Pam's Transaction journals'tab in the spreadsheet. You must use the chart of accounts given and provide a narration for all journals you create. Remember to use the Perpetual Inventory Systemand all transactions are on creditunlessotherwise stated. 
2. You are then required to enter journals for the additional information provided on the 'Pam's Information' tab. These areBalance Date Adjustments. Enter the 8 adjustment journals into the 'Pam's Additional journals'tab in the spreadsheet. Once again you must use the chart of accounts given and provide a narration for all journals you create.
3. On the 'Policies' tab please complete the missing words and numbers to reflect the methods used to value PP&E and inventory for Pam's Pies. 

Part 2 - Richard's Roading Richard's

Roading is a sole trader and provides concreting and asphalting services to local councils, developers and private individuals. It is late in the afternoon on the last day of the financial year and all journals have been done and the trial balance has been drafted. Richard has just realised that he has not looked at the value of his accounts receivable. GST is not applicable for this assessment.

Required:

1. Review the aged accounts receivable Richard has provided along with his notes in the 'Richard's Accounts Receivable'tab. Write off any bad debtsthat Richard has identified by making entries in the aged accounts receivable and entries in the trial balance adjustments column. If you need to, write out the journal on paper then transfer the amounts to the Trial Balance on the 'Richard's Trial Balance'tab. Check that the Adjusted Trial Balance balances, and check the Adjusted Trial Balance accounts receivable amount matches the total on the 'Richard's Accounts Receivable'tab after bad debt write offs for Richard's Roading.
2. Once the bad debts have been written off you need to review the remaining items on the 'Richard's Accounts Receivable'tab for any doubtful debts. Calculate a doubtful debtsprovision and make the relevant entries in the trial balance adjustments columns. If you need to, write out the journal and then transfer them to the Trial Balance on the 'Richard's Trial Balance'tab. Doubtful debts do not get entered in the 'Richard's Accounts Receivable'tab. Check that the Adjusted Trial Balance balances. 
3. From the adjusted trial balance construct an income statement for Richard's Roading in the 'Richard's Income Statement'tab. Remember to use the 3 columns to present the amounts in a logical way.
4. Ensure that the Income Statement adds correctly. 
5. From the adjusted trial balance construct a Balance Sheet for Richard's Roading in the 'Richard's Balance Sheet'tab. Remember to use the 3 columns to present the amounts in a logical way.
6. Ensure that the Balance Sheet adds correctly.
7. From the adjusted trial balance construct a Statement of Changes in Equity for Richard's Roading in the 'Richard's Equity Statement'tab.
8. Ensure that the Statement of Changes in equity adds correctly and matches the Equity and Net Assets Balances on the 'Richard's Balance Sheet'tab Once all the above tasks have been completed, and you have checked your work, please save the excel file and submit the spreadsheet for marking.