You are on page 1of 29

Here is a check list of what was required in your first assignment.

1 Two files submitted to Turnitin docx file and spreadsheet file


2 ONE file needed to be submitted to the reception (hard copy). It
had to contain all questions and all answers in order (including
spreadsheets with formula view)
3 Just your name as the file name? Do not name files Assignment1
as they all look the same then. YOUR NAME must be included
4 List of questions attempted?
5 Academic integrity statement?
6 Your name etc. in the footer?
7 Plagiarism quiz? Showing your name? Reference to the source?
8 Digital literacy questions? Good answers? Example spreadsheets
showing row and column headings, URL references? Accounting/
CPA in Second Life?
9 ABC Learning. Good answers? Comprehensive? References?
10 Problem questions? Correct answers, Good presentation?
11 Spreadsheets. Correct numbers?
12 Row and column headings?
13 Separate data and report areas?
14 Pasted spreadsheet formula view?
15 Use IF function?
16 References throughout the assignment e.g. H page ? URLs,
Interact2. While reference requirements was not as strict as in
some other subjects, (dummies) or google was not the way to
go. Especially if (dummies) did not appear in the bibliography/
reference list
17 Bibliography? URLs? Text? Study Guide? Spreadsheet Advice?
ABC Learning movies. Plagiarism quiz? Excel help.
18 Spell check used, Capital Letters used where required, sentences
complete
If you have all of these then.

If you didnt .. make sure you cover these for the next assignment.
270308028

School of Accounting and Finance


ACC566 ACCOUNTING SYSTEMS & PROCESSES

ASSIGNMENT 1 FEEDBACK
201530

I hope you are travelling well in this subject. There is a lot of work but keep in mind it lays the
foundation for future accounting subjects and doing these questions conscientiously is good
preparation for the final examination.
Please use this feedback and your results to improve your marks for Assessment 2.
Remember that if you are stuck and you dont understand a question, please come and talk to us.
Assignment 2 includes more spreadsheets. Some of the submitted spreadsheets in assignment 1
left room for improvement. Ensure this improvement is implemented in assignment 2. Check the
advice on the Spreadsheets Advice section in the introduction to the study guide or in Resources.
As well for assignment 2, make sure you paste normal views and formula views of your
spreadsheets showing row and column headings as required. And keep all data separate from
the solution/report section. Make sure that spreadsheets fit on the page and are not too small for
us to read! Look for opportunities to use the IF function.

Assignment 1
The overall quality of submissions for this assignment was good with a few exceptions.
Why did some students submit incomplete work? The instructions re assignment 1 in the subject
outline are very explicit. Let us know if there is any way we can make them clearer in the future.
Try to make your assignment work self-contained not for us but for your sake when you review
topics for the final exam. It might be a good idea, for study purposes, to include the questions with
the answers up to you.
Some specific comments follow:
1.
2.
3
4
5
6
7

Discussion questions were generally well answered. Please remember that copy/ paste
is not the best way to score marks or to prepare for your 70% final exam
Please attempt topic multiple choice on Interact2 great practice.
Indent credits in journal entries.
Do not sum general journal entries.
Turnitin - submit ONE word file and then ONE spreadsheet file, but HARD copy
submission should be ONE file arranged in order of questions
The problem questions were remarkably well done with only a few errors.
The presentation of some assignments was outstanding with some students already
setting out well-structured spreadsheet solutions to problem questions. More spreadsheets

270308028

9
10

11
12
13
14
15
16
17
18
19
20

are required for the next assignment. Now that you have this feedback I hope that the
standard of presentation will improve.
Questions 1 6 were handled fairly well. Online CSU Plagiarism Quiz. This task
provided a reminder about plagiarism issues. You were expected to paste in your
assignment evidence of completion of this task. And a paste of your name. Wasnt it
somewhat ironic that many did the quiz, pasted the results and then did NOT
acknowledge the source. No reference whatsoever! Technically, this is plagiarism.
Most students but not all - properly included a bibliography at the end of their
assignment and appropriate referencing throughout their work.
Terminology? It is generally a good idea to use the same terminology as appears in
the text question rather that inventing your own. Note that Australian accounting
terminology has evolved and become more American over the years (note that some
spelling is different, eg cheque = check)
Use your spelling checker. In doc files AND spreadsheet files. Sloppy spelling
doesnt enhance an assignment.
Be consistent in the use of commas in showing thousands.
Check column width in spreadsheets. Adjust font size if necessary and/or paste into
your doc file in landscape orientation where appropriate.
Leave out zeroes if irrelevant. How?
Number pages please. And your name on every page.
Careful with wording. Tax is an expense (like Income Tax), but Tax Payable is a
liability; however, GST Clearing is either an Asset or a Liability
Where the question asked to give examples of different accounts, you could choose
from hundreds of accounts of a typical chart of accounts (or use the one in the book), but
liabilities or expenses is not an example
In PALER, P stands for properietorship/owner's equity, not Plant and not Profit. You
just needed to follow the instructions and check it on Interact2 under the relevant topic.
The question about subscription for a magazine for $240 was meant to be done
from the magazines perspective, so the magazine would receive money Dr Cash. Please
read questions carefully
Balancing Ledger accounts the method in the textbook is ok but see below.

270308028

Balancing ledger accounts


The following example demonstrates complete balancing of ledger
accounts using Balance brought forward, Balance carried down, and
Balance brought down. This method complies more closely with the
double entry system. The method is useful when reconstructing
accounts.

Date
Marc
h

April

270308028

Particulars
1 Bal b/f
4 Sales
Rent
9 Revenue
2
6 Sales

1 Bal b/d

Cash
Amoun
t
Date
Marc
600 h
200
300
400
$1,500
800

2
7
2
2
2
8
3
1

Particulars

Amoun
t

Purchases
Purchases

100
200

Purchases

300

Freight

100

Bal c/d

800
$1,500

Spreadsheet structures.
On the previous page an example from the Spreadsheet Advice section of your study guide is reproduced.
How is it structured?
1.
2.
3.
4.

There is no data entered after row 25.


After row 25 there are only formulas
The OK"s test to see if totals are equal
The "Net Income" in cell A50 is an IF function If the net income amount is negative Net Loss will be
printed.
5. The amounts in the adjustments columns are all copied from the data area
6. The formula in cell F26 is copied down that column and automatically adjusts.
7. The formula in cell H50 is another IF function as is the formula in cell I50.
8. This same pattern could be used to copy numbers into the financial reports from the worksheet.
9. In this manner the spreadsheet is reusable month to month by just changing the data in the top part of
the spreadsheet. Everything in the bottom part changes automatically.
10. Your answers to the spreadsheet problems should have used these structures

SOLUTION FEEDBACK
Q1-1 Online CSU Plagiarism Quiz
This task provided a reminder about plagiarism issues. You were expected to paste in your
assignment, evidence of completion of this task. Some pasted a full screen capture of the summary
results with lots of blank space.
Paste of your name? As required.
Isnt it somewhat ironic that many did the quiz, pasted the results and then did NOT acknowledge the
source. No reference whatsoever!
1-2

How can computer spreadsheets (e.g. Excel) be pasted into a word document showing rows
and column headings? Describe two methods and paste simple examples.
How to paste spreadsheets in word docs.
One way is page setup, tick show row and column headings, highlight area, copy, paste special,
picture works well with some versions of Excel.
Check the spreadsheet advice in the introduction to the study guide.
Note that you needed to paste simple examples, Showing row and column headings.
An example follows.

A
1 P10-4A

Computing Depreciation by Three Methods

2
3

Data

On January 3, 20X4, Tim Flanagan Inc paid


$ 224,000 for equipment used in manufacturing
automotive supplies. In addition to the purchase price, the company paid
$
700 transportation
charges, $
100 insurance for the goods in transit,
$
12,100 Sales tax and $
3,100
for a special platform on which to place the equipment in the plant. Flanagan management estimates the equipment
will remain in service for
5
years and have a residual value of
$
20,000 The equipment will produce
50,000 units the first year, with production decreasing by
5,000 units during each of the next
years. In trying to decide which depreciation method to use, Flanagan has requested a depreciation schedule
for each of three depreciation methods (straight-line, units-of-production, double-declining balance)
Which method is best if Martha wants to report the maximum profit next year? Which method
best if Martha wants to minimise tax next year?

5
6
7
8
9
10
11
12
13
14
15

Solution

16
17
18
19
20
21
22
23
24
25

Date
03-01-X4
31-12-X4
31-12-X5
31-12-X6
31-12-X7
31-12-X8

Flanagan Inc - Straight Line Schedule for the Period


Asset
Depreciation Depreciable Depreciation Accumulated Asset Book
Cost
Rate
Cost
Amount
Depreciation
Value
$ 240,000
$ 240,000
0.20
220,000
44,000
44,000
196,000
0.20
220,000
44,000
88,000
152,000
0.20
220,000
44,000
132,000
108,000
0.20
220,000
44,000
176,000
64,000
0.20
220,000
44,000
220,000
20,000

26
27
28
29
30
31
32
33
34
35

Date
03-01-X4
31-12-X4
31-12-X5
31-12-X6
31-12-X7
31-12-X8

36

Flanagan Inc - Units-of-Production Schedule for the Period


Asset
Depreciation Number
Depreciation Accumulated Asset Book
Cost
per unit
of units
Amount
Depreciation
Value
$ 240,000
$ 240,000
1.10
50,000
55,000
55,000
185,000
1.10
45,000
49,500
104,500
135,500
1.10
40,000
44,000
148,500
91,500
1.10
35,000
38,500
187,000
53,000
1.10
30,000
33,000
220,000
20,000
200,000

37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52

Date
03-01-X4
31-12-X4
31-12-X5
31-12-X6
31-12-X7
31-12-X8

Flanagan Inc - Double-Declining Balance Schedule for the Period


Asset
Depreciation Asset book Depreciation Accumulated Asset Book
Cost
Rate
Value
Amount
Depreciation
Value
$ 240,000
$ 240,000
0.40
240,000
96,000
96,000
144,000
0.40
144,000
57,600
153,600
86,400
0.40
86,400
34,560
188,160
51,840
0.40
51,840
20,736
208,896
31,104
0.40
31,104
11,104
220,000
20,000

Best method for reporting maximum profit in the early years is straight line
Best method for minimising taxes in the early years is DDB

Or a screen dump (capture) by adjusting the Excel borders, Alt PrintScreen and past in Word. Note that
in the example below the width of several columns is insufficient to show the numbers correctly. How
could this be fixed?

And to show the formula view,


special picture.

Control

` in the spreadsheet, adjust column widths, copy and paste

10

1 P10-4A

Computing Depreciation by Three Methods

2
3

Data

On January 3, 20X4, Tim Flanagan Inc paid


224000
for equipment used in manufacturing
automotive supplies. In addition to the purchase price, the company paid
700
transportation
charges,
100
insurance for the goods in transit,
12100
Sales tax and
3100
for a special platform on which to place the equipment in the plant. Flanagan management estimates the equipment
will remain in service for
5
years and have a residual value of
20000
The equipment will produce
50000
units the first year, with production decreasing by
5000
units during each of the next
years. In trying to decide which depreciation method to use, Flanagan has requested a depreciation schedule
for each of three depreciation methods (straight-line, units-of-production, double-declining balance)
Which method is best if Martha wants to report the maximum profit next year? Which method
best if Martha wants to minimise tax next year?

5
6
7
8
9
10
11
12
13
14

Solution

15
16
17
18

Date
03-01-X4
31-12-X4
31-12-X5
31-12-X6
31-12-X7
31-12-X8

19
20
21
22
23
24
25

Asset
Cost
=+E4+G5+B6+F6+H6

Flanagan Inc - Straight Line Schedule for the Period


Depreciation
Depreciable
Depreciation
Rate
Cost
Amount
=1/C8
=1/C8
=1/C8
=1/C8
=1/C8

=+C20-G8
=+E21
=+E22
=+E23
=+E24

=+E21*D21
=+F21
=+F22
=+F23
=+F24

Accumulated
Depreciation
=+F21
=+G21+F22
=+G22+F23
=+G23+F24
=+G24+F25

Asset Book
Value
=+C20
=+C20-G21
=+C20-G22
=+C20-G23
=+C20-G24
=+C20-G25

26
27

Asset
Cost

28

Date
=+B20
=+B21
=+B22
=+B23
=+B24
=+B25

29
30
31
32
33
34
35

Flanagan Inc - Units-of-Production Schedule for the Period


Depreciation
Number
Depreciation
Accumulated
per unit
of units
Amount
Depreciation

=+C20
=+(C30-G8)/E36
=+D31
=+D32
=+D33
=+D34

36

=+A9
=+A9-F9
=+E32-F9
=+E33-F9
=+E34-F9
=SUM(E31:E35)

=+D31*E31
=+D32*E32
=+D33*E33
=+D34*E34
=+D35*E35

=+F31
=+G31+F32
=+G32+F33
=+G33+F34
=+G34+F35

Asset Book
Value
=+C30
=+C30-G31
=+C30-G32
=+C30-G33
=+C30-G34
=+C30-G35

37
38

Asset
Cost

39

Date
=+B30
=+B31
=+B32
=+B33
=+B34
=+B35

40
41
42
43
44
45
46
47
48
49
50
51

Flanagan Inc - Double-Declining Balance Schedule for the Period


Depreciation
Asset book
Depreciation
Accumulated
Rate
Value
Amount
Depreciation

=+C30
=1/C8*2
=+D42
=+D43
=+D44
=+D45

=+C41
=+H42
=+H43
=+H44
=+H45

=+E42*D42
=+D43*E43
=+D44*E44
=+D45*E45
=+H45-G8

=+F42
=+G42+F43
=+G43+F44
=+G44+F45
=+G45+F46

Asset Book
Value
=+C41
=+C41-G42
=+C41-G43
=+C41-G44
=+C41-G45
=+C41-G46

Best method for reporting maximum profit in the early years is straight line
Best method for minimising taxes in the early years is DDB

Or use screen capture software such as geenshot.exe


See below: copied and pasted using Greenshot.
Its free!
http://getgreenshot.org/
Make sure you download from this site. Some other sites sometimes download nuisance software along with
Greenshot.

11

And you can resize the image.

12

1-3

List four web sites relevant to accounting and their URLs. Explain how is each relevant?
Answers will vary. Its important to explain how each is relevant to accounting. Some didnt.

1-4

What is Second Life? What is its connection with CPAA? Explain.


Second Life and Accounting? There are CPA firms embedded in the virtual world of Second Life.
http://www.cpaisland.com/ and 3D accounting models http://www.youtube.com/watch?v=4T4zTStVK6Y and
more.

13

http://secondlife.com/?v=1.1
and more

http://www.youtube.com/watch?v=Q-FR_fkTFKY

14

CPA Australia have used Second Life


http://cpacongress.wordpress.com/2008/10/29/cpa-australia-in-second-life-a-success/
http://www.youtube.com/watch?v=GmEEBfhwJdY

15

1-5
Work Integrated Assessment. Describe the computing environment in your workplace
(equipment, software, processes etc. If this is a task you cannot undertake, explain why - and as an
alternative task, describe the history and evolution of the Internet (about 300 words).
Some good and interesting answers re workplace computing environment. BTW, even if you are
employed on a casual basis it may be possible to answer this question. For example, one student
who works from home gave a good description of his home study environment.
The history and evolution of the Internet.
This was an alternative.
There are some good references online.
For example, here is a movie.
http://vimeo.com/2696386?pg=embed&sec=2696386
As usual Wikipedia is good.
http://en.wikipedia.org/wiki/History_of_the_Internet
And.
http://encyclopedia2.thefreedictionary.com/The+Internet
The Internet started in 1969 as the ARPAnet. Funded by the U.S. Government, the ARPAnet became a
series of high-speed links between major supercomputer sites and educational and research institutions
worldwide, although mostly in the U.S. A major part of its backbone was the National Science Foundation's
NFSNet. Along the way, it became known as the "Internet" or simply "the Net." By the 1990s, so many
networks had become part of it and so much traffic was not educational or pure research that it became
obvious that the Internet was on its way to becoming a commercial venture.

16

In 1995, the Internet was turned over to large commercial Internet providers (ISPs), such as MCI, Sprint
and UUNET, who took responsibility for the backbones and have increasingly enhanced their capacities
ever since. Regional ISPs link into these backbones to provide lines for their subscribers, and smaller ISPs
hook either directly into the national backbones or into the regional ISPs.
Internet computers use the TCP/IP communications protocol. There are more than 20 million hosts on the
Internet, a host being a mainframe or medium to high-end server that is always online via TCP/IP. The
Internet is also connected to non-TCP/IP networks worldwide through gateways that convert TCP/IP into
other protocols.
Although most new users interact with the Internet via their Web browsers, for years, command-line UNIX
utilities were used. For example, an FTP (File Transfer Protocol) program allows files to be downloaded,
and the Archie utility provides listings of these files. Telnet is a terminal emulation program that lets you log
onto a computer in the Internet and run a program. Gopher provides hierarchical menus describing
Internet files (not just file names), and Veronica lets you make more sophisticated searches on Gopher
sites. See FTP, Archie, Telnet, Gopher and Veronica.
Ironically, some of the original academic and scientific users of the Internet are developing their own
network once again. The Internet is so jammed these days that they no longer enjoy the quick access they
were used to.

Q1-6

Play the CPA ABC Learning movies (from Interact Resources or the CPA Youtube
channel - http://www.youtube.com/watch?v=YYF6JW9vJKothe Internet). Identify and
briefly explain four (4) accounting issues raised by this case.

Answers will vary.


The CPA video on ABC Learning included discussion of accounting problems with revenue recognition,
valuation of intangible assets, related party transactions, control of expenditures and classification of liabilities.
A few enhanced their answers by using other Internet resources. It is possible that you may choose this
case study as a relevant example in the final examination with any examination questions that relate to
corporate collapses.

17

Chapter 1 Quick check:

18

Chapter 1: QC 1-10
These QCs provide good practice in answering multiple choice style questions.
Not part of the assignment but . Good practise

Answers:
1. a
2. b
3. b
4. c
5. b
6. d
7. b
8. a
9. a
10. c
19

MORE QUIZZES ARE ON INTERACT2 under each topic!

20

Q1-7
Q1-7 Learning Objective: understanding the accounting equation.
Explain the underlying rationale for the accounting equation. What are these symbols P A L E R?
They are discussed in section 2.2 of the modules in Interact (also in the Resources section). Relate
them to sources and uses of funds and the double entry system. Give examples of increases and
decreases in "P".
See the Study Guide in the Interact2 topics or in the PDFs in Resources.
In the resource PDFs see topic 2. Recording business transactions. The discussion starts on page 4.
An understanding of these relationships is relevant throughout accounting in this subject and subsequent
subjects.
The basis of these relationships is that sources of funds equals uses of funds. You should provide your own
original rationale/discussion.
Q1-8 Balance Sheet Equation. Spreadsheet required.
Note that Interact2 resources including Spreadsheet Advice and the worksheet video may assist in completing
this assignment question.

21

Pasted formula view required showing row and column headings.


No cells in the report area contain numbers. Only formulas.
Data is copied from the Data section by using the +key. For example cell D28 is +D8, and so on.
All shaded areas (the answers) are formulas.
With this spreadsheet structure the accountant can create new spreadsheets in future periods by just changing
the data.

22

Here is the formula view of the Report area. Column widths are adjusted.
Notice that there is no data in the report area.

Q1-9 Give 4 examples each of assets, liabilities and owners equity (Proprietorship) accounts.
Answers will vary. A few errors by some?
Q1-10 What is a chart of accounts? What is its purpose?
See the text or search the internet. For example, http://en.wikipedia.org/wiki/Chart_of_accounts
Q1-11 List eight accounts with normal debit balances. List eight accounts with normal credit balances.
Answers will vary. Again a few errors.
Q1-12 Learning Objective: understand and apply the Accounting Equation
A. Create a manual solution.
B. Create a spreadsheet solution. Paste normal and formula views.
C. Change 4 numbers such that the trial balance still balances. Paste this new normal view. Ensure
that you choose the 4 changes yourself. Highlight the data changes with the yellow highlighter in
Excel. Note that Interact2 resources including Spreadsheet Advice and the worksheet video may
assist in completing this assignment.
The reason for the requirement to create a manual solution is for you to realise the advantages of
spreadsheets. And to give you practice in answering questions manually as you will in the final exam.
23

The spreadsheet solution follows.

Note the IF function in cell B36. It tests that the balances are equal.

24

Here is the same problem with four changes.


Just takes a few seconds. Ensure that the changes are logical and that the trial balance still balances.

Ensure that you paste the formula view.


Cell B36 is an IF function.
25

Q1-13 What is accrual accounting?


See the text pages 116-117 and/or search the Internet.
http://www.business.gov.au/business-topics/tax-finance-insurance/business-finances/Pages/cash-oraccrual-accounting.aspx
and
http://www.dummies.com/how-to/content/deciding-between-cashbasis-and-accrual-accounting.html
Q1-14 Why are adjusting entries needed?
See the text page 118 or search the Internet. The emphasis here was on WHY
Q1-15 List four types of adjusting entries and give examples of each.
See chapter 3 of the text. It is important that you choose your own examples.
Better answers will have example journal entries. With indented credits.
Q1-16 You pay $240 for a magazine subscription for the next 12 months.
How should the magazine company account for this transaction?
For the magazine company this creates a liability they owe you a 12 months subscription.
If, for example they stopped publishing the magazine they would need to refund your money.
So Debit Cash 240
Credit Unearned Magazine Subscription 240 or similar.
After 6 months the entry would be
Debit Unearned Magazine Subscription 120
Credit Magazine Revenue

120

Thus the liability is reduced and revenue is recognised.


Q1-17 Distinguish between the adjusted trial balance and the post closing trial balance.
See the text. And/or the Study guide. Simply, the adjusted trial balance shows all ledger accounts
after the adjustments. The post closing trial balance is after R and E accounts are transferred to the
Income Summary account and then to Capital. The post closing trial balance has no revenue or
expense accounts. It just shows P A L accounts.
.
Q1-18 Distinguish between current and non current liabilities. Give your own examples of each.
A few errors.
Q1-19 Explain the current ratio and the debt ratio. Create numerical examples.
See the text page 192. Make sure you have your own numerical examples.
Q1-20 Learning Objective: prepare the worksheet and financial statements using a properly
constructed spreadsheet.
Note that Interact2 resources including Spreadsheet Advice and the worksheet video may assist in
completing this assignment.
Create a ten column worksheet and enter this data. Also your spreadsheet will create the financial
reports.
A few errors by some. Check Supplies. Dont forget the Financial reports the Income statement etc.
26

There are relevant examples in the Spreadsheet Advice.


Note the use of the IF function to check that balances are equal and to change net incomet to
net loss if the amount is negative.

27

28

29