Principles of Accounting and Business Finance Individual Assignment 2 Questions

Instructions :

1. Refer to APPENDIX A for the Individual Assignment.
2. Date of submission of written assignment:
24 February 2025
Marks will be deducted for late submissions.
3. Each written assignment will be marked out of 100 marks and counts for
20% of the total assessment of the course.
4. FORMAT OF WRITTEN PROJECT
Please note the following technical requirements:
a. Font & Size : Times New Roman & Size 12. Single spacing
b. Colour: Black (for text)
c. Paper: White

Appendix A

Answer ALL questions.

Question 1

Ms. Erika operates a cosmetic retail shop in the Yishun MRT station area of Singapore. The following are transactions for April 2024.
(a) Erika started her cosmetic retail business with $110,000 in the business bank account.
(b) She purchased furniture and fittings at $12,700 from Rooma SG Pte Ltd, Singapore, on credit.
(c) Damaged furniture and fittings costing $1,200 were returned to Rooma SG Pte Ltd.
(d) Erika received cash of $4,859 from the walk-in client on her cosmetic product sales.
(e) She paid Rooma SG Pte Ltd. with a cheque.
(f) Erika took a DBS bank loan of $40,000.
(g) Erika paid salaries and wages of $18,000 and utilities of $2,600 with a cheque.
(h) An amount of $1,350 was withdrawn from the bank as cash in hand.
(i) Erika has issued an invoice to Ms. Reena Lee of $7,800 for the sale of cosmetic products.
(j) She collected a rental of $9,500 by cheque from her tenant.
(k) A cheque for $11,700 was given to pay for advertising.
(l) Erika invests an additional cash of $25,000 in the business to further its development.
(m) Paid instalment due on bank loan $900 with a cheque.
(n) Erika issued a personal cheque of $780 to pay for her home telephone bill.

Required:

(i) For each of the above transactions, write the accounts and amounts to be debited and credited. 
(ii) Compute the total revenue for April 2024 of Erika’s Cosmetic business. (Workings are to be shown clearly). 

Question 2

The following is a summary of Jayden Trading’s Cash Book for the month of September 2024.

Credit Balance $1,858

The Bank Statement received for October 2024 showed the following:

Additional information:

It was discovered that cheque no. 1584 was entered wrongly in the cashbook but correctly in the bank statement.

Required:

(a) Bring the cash book up to date. Calculate the updated balance on 31 October 2024 and state whether it is a debit or credit balance.
(b) Prepare a statement to reconcile the difference between your amended cash book balance and the balance in the bank statement on 31 October 2024.
(c) State the amount of the bank balance, which would appear in Jayden Trading’s Statement of Financial Position as of 31 October 2024.

Question 3 

Iman Co. is a manufacturing company with two production centers such assembly and Finishing. Budgeted overhead costs for the third quarter of 2024 are listed below:

Required:

(i) Calculate the overhead absorption rate in each department by completing the table. You are required to use the most appropriate basis to apportion the relevant overhead costs.
(Please show detailed workings and round up your answers to two decimal places.) 
(ii) One of the products of Iman Co. is the Irmani leather jacket. Cost information to produce one unit of Irmani leather jacket is as follows:
Direct materials                          2 kg at $4.00 per kg
Direct labour                              3 hours at $6.50 per hour
Time spent in:
Assembly Department              2 machine hours
Finishing Department                 5 labour hours
Find the cost per unit of an Irmani leather jacket.
(Please show detailed workings and round up your answers to two decimal places.)