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UNIVERSITY OF SOUTH AUSTRALIA

Open Universities Australia


ASSIGNMENT COVER SHEET

An Assignment cover sheet needs to be included at the front of each assignment.


Please fill in all details clearly.

Full name: Andrew Edward Cole


Address: PO Box 9043
Deakin LPO
ACT Postcode: 2600

UniSA student ID 1 1 0 0 2 0 0 7 1

Phone number: 0407 384 998


Email address: colay009@students.unisa.edu.au
Unit code: ACG11
Unit title: Accounting, Decisions and Accountability
Due date (indicate if extension granted): 25th March, 2009 (No Extension)
Assignment number: 1

Assignment topic as stated in the Unit information


Assignment 1

I declare that the work contained in this assignment is my own, except where
acknowledgement of sources is made.
I authorise the University to test any work submitted by me, using text comparison software,
for instances of plagiarism. I understand this will involve the University or its contractor
copying my work and storing it on a database to be used in future to test work submitted by
others.
I understand that I can obtain further information on this matter at
http://www.unisanet.unisa.edu.au/learningconnection/student/studying/integrity.asp

Signed: Andrew Cole – 25 March 2009

Note: The attachment of this statement on any electronically submitted assignments will be
deemed to have the same authority as a signed statement.
Office use
Date received from Assessment/grade Academic staff Recorded and
student member dispatched
Question 1:

A. Find a definition of what plagiarism is and write a definition of plagiarism in


your own words.

Plagiarism is the act of presenting somebody else’s work as your own, and can
include seemingly innocuous actions like copying the layout and format of a solution
where the layout is a graded item, or copying a line of text and rewording it.

B. In your own words, write half a page on strategies which can be adopted to
avoid plagiarism.

Plagiarism can primarily be avoided through careful referencing of your sources.

Several strategies may be used to ensure all sources are referenced appropriately:

• Referencing is something that should be done throughout the document


writing process, not something that has to be rushed before final submission.
By referencing any used sources in every draft, and maintaining a source list
while researching for an assignment, missing a reference can be avoided.

• Ensuring that you use the reference system preferred (or required) by the
university or professor in question. If in-text referencing is expected and not
completed, it is almost certain your work will be considered as plagiarism.

• Some electronic tools are available that automatically check your work for
originality. Some of these tools are used by universities themselves, so a
failure from one of would almost certainly result in an accusation of
plagiarism. An example of an electronic tool is Turnitin
(http://www.turnitin.com), used by the University of South Australia.

Sources:

University of South Australia, 2009, Avoiding Plagiarism, viewed 24 March 2009,


<http://www.unisa.edu.au/ltu/students/study/referencing/plagiarism.asp>

University of South Australia, 2009, Referencing, viewed 24 March 2009,


<http://www.unisa.edu.au/ltu/students/study/referencing/default.asp>

University of South Australia, 2005, Referencing and avoiding plagiarism (Business),


viewed 24 March 2009,
<http://www.unisanet.unisa.edu.au/learn/Learningconnection/?PATH=/Resources/wo
rkshop%2Dreferencing/Referencing+and+avoiding+plagiarism+%28Business%29/&
default=Using+this+resource.htm>

University of South Australia, 2006, Turnitin Overview, viewed 24 March 2009,


<http://www.unisa.edu.au/helpstudents/turnitin/default.asp>
Question 2: Decision Making

1. Establish Goals

Allan’s goal is to maximise his earnings; the money earned is to be used on a year
long overseas trip.

Allan has $10,000 currently, but he requires a new ice cream making machine if he is
to continue selling ice cream at the various events on weekends.

2. Gather available information on alternatives


• Amount to invest: $10,000
• Online management account returns 12% interest per annum.

“Super Soft” ice cream making machine:


• $7,000 initial purchase price
• $3 income per ice cream
• $1 cost per ice cream
• Predicted monthly sales: 950 = 70%; 550 = 30%

“Family Special” ice cream making machine:


• $5,000 initial purchase price
• $2.50 income per ice cream
• 80c cost per ice cream
• Predicted monthly sales: 1100 = 65%; 650 = 35%

“Budget Ice” ice cream making machine:


• $4,000 initial purchase price
• $2.00 income per ice cream
• 60c cost per ice cream
• Predicted monthly sales: 1400 = 75%; 800 = 25%
3. Evaluate consequences of alternatives

Cash Option:
• Allan leaves his money where it is, and stops selling ice cream on weekends.
• Income from bank interest:
o $10,000 x 12% = $1,200 per annum
o $100 per month (ignoring compounding interest)

“Super Soft” option:


• Allan purchases the “Super Soft” machine for $7,000; leaving $3,000
• Income from bank interest:
o $3,000 x 12% = $360 per annum
o $30 per month (ignoring compounding interest)
• Net income per ice cream sold:
o $3.00 gross - $1.00 expense = $2.00 per ice cream
• Monthly sales:
o (950 x 70%) + (550 x 30%) = 830 ice creams per month
• Income from ice cream sales
o 830 ice creams at $2.00 each = $1660 per month
• Total monthly income:
o $1660 ice cream income + $30 bank interest = $1690 per month

“Family Special” option:


• Allan purchases the “Family Special” machine for $5,000; leaving $5,000
• Income from bank interest:
o $5,000 x 12% = $600 per annum
o $50 per month (ignoring compounding interest)
• Net income per ice cream sold:
o $2.50 gross - $0.80 expense = $1.70 per ice cream
• Monthly sales:
o (1100 x 65%) + (650 x 35%) = 942.5 ice creams per month
• Income from ice cream sales
o 942.5 ice creams at $1.70 each = $1602.25 per month
• Total monthly income:
o $1602.25 ice cream income + $50 bank interest = $1652.25 per month

“Budget Ice” option:


• Allan purchases the “Budget Ice” machine for $4,000; leaving $6,000
• Income from bank interest:
o $6,000 x 12% = $720 per annum
o $60 per month (ignoring compounding interest)
• Net income per ice cream sold:
o $2.00 gross - $0.60 expense = $1.40 per ice cream
• Monthly sales:
o (1400 x 75%) + (800 x 25%) = 1250 ice creams per month
• Income from ice cream sales
o 1250 ice creams at $1.40 each = $1750 per month
• Total monthly income:
o $1750 ice cream income + $60 bank interest = $1810 per month
4. Choose a course of action

Simply by looking at the monthly income potentials of each option the “Budget Ice”
option is chosen, given that it repays the initial outlay for the ice cream making
machine in a little over two months and has the highest monthly income.

This choice may have been different if other factors where considered, such as the
possible resale value of the ice cream making machine; or if Allan plans to leave on
his holiday before two months, in which case he would be better off leaving his
money where it is.
TONY D'ANGELO - HAIRDRESSER
Chart of Accounts

A/C Description A/C Description


No No

Assets Income
100 Cash at Bank 400 Revenue
101 Accounts Receivable
102 Supplies
103 Equipment

Liabilities Expenses
200 Loan Payable 500 Rent Expense
501 Advertising Expense
502 Insurance Expense
503 Telephone Expense

Equity
300 Tony D'Angelo, Capital
301 Tony D'Angelo, Drawings
TONY D'ANGELO - HAIRDRESSER
General Journal

Date Description Post Debit Credit


Ref
2010
July 2 Cash at Bank 100 $ 15,000
Tony D'Angelo, Capital 300 $ 15,000
D'Angelo invested in the business by depositing cash
into a business cheque account with the NZA Bank.

2 Rent Expense 500 $ 600


Cash at Bank 100 $ 600
Paid $600 for the first month's rent.

3 Equipment 103 $ 14,000


Cash at Bank 100 $ 6,000
Loan Payable 200 $ 8,000
Purchased equipment by issuing a cheque and signing a
commercial loan agreement.

4 Supplies 102 $ 520


Cash at Bank 100 $ 520
Purchased supplies

6 Advertising Expense 501 $ 280


Cash at Bank 100 $ 280
Paid advertising expense

16 Cash at Bank 100 $ 840


Accounts Receivable 101 $ 125
Revenue 400 $ 965
Recorded first half of month revenue

20 Insurance Expense 502 $ 280


Cash at Bank 100 $ 280
Paid insurance for month of July

23 Cash at Bank 100 $ 75


Accounts Receivable 101 $ 75
Received payment from customer on account

28 Tony D'Angelo, Drawings 301 $ 220


Cash at Bank 100 $ 220
D'Angelo withdrew cash for personal living expenses

31 Cash at Bank 100 $ 880


Accounts Receivable 101 $ 60
Revenue 400 $ 940
Recorded second half of month revenue

31 Telephone Expense 503 $ 135


Cash at Bank 100 $ 135
Paid telephone account by cheque
TONY D'ANGELO - HAIRDRESSER
Cash at Bank
Account No: 100

Date Explanation Post Debit Credit Balance


Ref
2010
July 2 Tony D'Angelo, Capital 1 $ 15,000 -$ 15,000
Rent Expense 1 $ 600 -$ 14,400
3 Equipment 1 $ 6,000 -$ 8,400
4 Supplies 1 $ 520 -$ 7,880
6 Advertising Expense 1 $ 280 -$ 7,600
16 Revenue 1 $ 840 -$ 8,440
20 Insurance Expense 1 $ 280 -$ 8,160
23 Accounts Recievable 1 $ 75 -$ 8,235
28 Tony D'Angelo, Drawings 1 $ 220 -$ 8,015
31 Revenue 1 $ 880 -$ 8,895
Telephone Expense 1 $ 135 -$ 8,760
TONY D'ANGELO - HAIRDRESSER
Accounts Receivable
Account No: 101

Date Explanation Post Debit Credit Balance


Ref
2010
July 16 Revenue 1 $ 125 -$ 125
23 Cash at Bank 1 $ 75 -$ 50
31 Revenue 1 $ 60 -$ 110
TONY D'ANGELO - HAIRDRESSER
Supplies
Account No: 102

Date Explanation Post Debit Credit Balance


Ref
2010
July 4 Cash at Bank 1 $ 520 -$ 520
TONY D'ANGELO - HAIRDRESSER
Equipment
Account No: 103

Date Explanation Post Debit Credit Balance


Ref
2010
July 3 Cash at Bank / Loan Payable 1 $ 14,000 -$ 14,000
TONY D'ANGELO - HAIRDRESSER
Loan Payable
Account No: 200

Date Explanation Post Debit Credit Balance


Ref
2010
July 3 Equipment 1 $ 8,000 $ 8,000
TONY D'ANGELO - HAIRDRESSER
Tony D'Angelo, Capital
Account No: 300

Date Explanation Post Debit Credit Balance


Ref
2010
July 2 Cash at Bank 1 $ 15,000 $ 15,000
TONY D'ANGELO - HAIRDRESSER
Tony D'Angelo, Drawings
Account No: 301

Date Explanation Post Debit Credit Balance


Ref
2010
July 28 Cash at Bank 1 $ 220 -$ 220
TONY D'ANGELO - HAIRDRESSER
Revenue
Account No: 400

Date Explanation Post Debit Credit Balance


Ref
2010
July 16 Cash at Bank, Accounts Pay 1 $ 965 $ 965
31 Cash at Bank, Accounts Pay 1 $ 940 $ 1,905
TONY D'ANGELO - HAIRDRESSER
Rent Expense
Account No: 500

Date Explanation Post Debit Credit Balance


Ref
2010
July 2 Cash at Bank 1 $ 600 -$ 600
TONY D'ANGELO - HAIRDRESSER
Advertising Expense
Account No: 501

Date Explanation Post Debit Credit Balance


Ref
2010
July 6 Cash at Bank 1 $ 280 -$ 280
TONY D'ANGELO - HAIRDRESSER
Insurance Expense
Account No: 502

Date Explanation Post Debit Credit Balance


Ref
2010
July 20 Cash at Bank 1 $ 280 -$ 280
TONY D'ANGELO - HAIRDRESSER
Telephone Expense
Account No: 503

Date Explanation Post Debit Credit Balance


Ref
2010
July 31 Cash at Bank 1 $ 135 -$ 135
TONY D'ANGELO - HAIRDRESSER
Trial Balance
as at 31 July 2010

Description Account Debit Credit


No.
Cash at Bank 100 $ 8,760
Accounts Receivable 101 $ 110
Supplies 102 $ 520
Equipment 103 $ 14,000
Loan Payable 200 $ 8,000
Tony D'Angelo, Capital 300 $ 15,000
Tony D'Angelo, Drawings 301 $ 220
Revenue 400 $ 1,905
Rent Expense 500 $ 600
Advertising Expense 501 $ 280
Insurance Expense 502 $ 280
Telephone Expense 503 $ 135
$ 24,905 $ 24,905