Assessment 2 Template

Course Code and Title COMR2008 Principles of Accounting

Assessment Assignment and Video (5 minutes)

a) Explain the use of accounting information and identify
Learning Outcomes
ethical issues in accounting
b) Explain the accounting cycle and apply double entry
accounting principles to process transactions
Submission By 11:55 pm AEST/AEDT Sunday of Week 7

Weighting 15%

Total Marks 50 marks

Additional Information When there is evidence of academic dishonesty, a student

will face Misconduct Procedures. Please refer to Torrens
policies and procedures in: http://www.tua.edu.au/policies/

Student Name and ID

Lecturer mark allocation:

Question Available marks Marks achieved

1 15
2 10
3 10
Part A 35
Part B 15
Total 50

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Instructions

This assessment is comprised of two parts; Part A and B. You need to attempt both parts and
submit two files on Blackboard under assessment 2 link. These two files should include; part A
completed on template provided and a video that completes part B.

Part A:

Part A is an assignment. You have to attempt questions and provide answers to all these on
this provided document. Download this template provided, answer all questions, save it and
upload on Blackboard under assessment 2 link as a word file only.

Part B:

Part B requires you to make a video of 5 minutes of yourself explaining how you achieved the
provided answers. Do not read your answers in the video. You need to explain the logic and
concept behind the answer you arrived at. This video can be made as on mobile device,
PowerPoint (voice over), Loom, YouTube, Vimeo, Collaborative Ultra, Canva, Padlet, Prezi,
iMovie, or any other. Here is a useful video on making a voice recorded PowerPoint presentation
http://www.youtube.com/watch?v=3uk4CU7uobM. It is highly recommended that you practice
your presentation several times before you submit the final record. You need to submit this
video on Blackboard under assessment 2 link.

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Part A
Question 1 – Ethics in Accounting (15 marks)
As the accountant of Breathless Company, Sandra discovered a misstatement that will
overstate net profit in this year’s financial statements. These misleading financial statements
will appear in the company’s annual report which will be issued to banks, creditors and other
stakeholders. Sandra communicated to her manager, Jerry McNabb, about this misstatement.
Jerry said, “Hey! What they don’t know won’t hurt them so we don't need to fix and disclose
this misstatement. Just don’t make such a mistake again.” She agreed with Jerry because she
feared her job might be at stake, provided the current COVID-19 situation. She was also afraid
that the upper-level management was actively considering cost reductions by laying off some
staff, which might include her too.
Sandra came across certain financial information particularly related to costing that she
believes will assist one of her friends, Adam, who is planning to supply goods Breathless
Company. After all, Sandra is a good friend and considers helping Adam a virtue. She sees no
harm in this because it will benefit the company and her friend. She provides the information
to Adam without taking consent from the concerned authority in the company.
Sandra has been working in Breathless Company since 2015. She has been doing great in
bookkeeping, lending, and financial planning. Considering her performance, she has recently
been appointed as an internal auditor of Breathless Company, reporting directly to the audit
committee.
Required:
Identify and describe the ethical issues present in the above scenario, and relate them to the
facts of the case.

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Question 2 – Recording Transactions (10 marks)
Carz Company has following transactions from the March 2020. Record them in General
Journal. Include narrations. Carz Company is registered for GST.

Date Transactions

1/3 Repaired cars for $4000 plus GST. The customer paid full amount through
EFTPOS.
5/3 Paid a one-year insurance in advance of $6000 including GST.
6/3 Purchased equipment and machinery for $19000 plus GST. Paid $10000
upfront with remaining due in six months.
12/6 Purchased tyres from Toyota on credit for $90 000 plus GST.
27/3 The owners withdrew $5 000 from the business for personal use.
28/3 Paid electricity bill of $2 500 including GST for the previous month.
29/3 A customer paid previously owing amount of $1 850.
30/3 Made a final settlement payment of $7 000 on a previously obtained bank loan.

Date Details Debit ($) Credit ($)

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Question 3 – Adjusting Entries (10 marks)

Johns Co. uses the following worksheet.

Johns Corporation
Worksheet
For the month ended 30 June 2019
Unadjusted Trial Adjustments Adjusted Trial Income Statement Balance Sheet
Balance Balance
Account Debit Credit Debit Credit Debit Credit Debit Credit Debit Credit
Cash at Bank 145,000
Notes Receivable 54,000
Accounts Receivable 12,000
Prepaid Insurance 2,000
Office Supplies 1,200
GST Receivable 32,000
Land 130,000
Building 180,000
Accumulated Depreciation –
Building
Office Equipment 8,000
Accumulated Depreciation –
Office Equipment
Accounts Payable 10,700
Unearned Fees 2,000
GST Payable 1,500
Mortgage Payable 250,000
Johns Co – Capital 243,000
Johns Co – Drawings 2,000

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 Sales 75,000
Salaries Expense 9,000
Telephone Expense 5,000
Advertising Expense 2,000
582,200 582,200

Required:

Complete the above worksheet considering the additional information available at the end of the month:

Office supplies on hand were worth $980.

Depreciation on office equipment was $180.

Prepaid insurance expired by $120.

Depreciation on building was $500.

Employees worked for the month had unpaid salaries of $4,100.

Revenue not received from services provided $1,800.

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 End of Assignment

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