Name: Jane Elizabeth Wong Student number: 542363 Tutor: Matt Dyki Tutorial Day: Friday Time: 11:00

- 12:00 ACCT 10001 Accounting Reports and Analysis Individual Assignment 1 Event One (1 August 2011):

1.

Current Liabilities (Account Payable - service fee including GST that TW owed Bugsbegone) increased by $13200

* Present Obligation - The service fee that Tarrent Woods owed Bugsbegone is a future sacrifice of economics benefits that Tarrent Woods is presently obligated to pay back at the end of the month. These liabilities are expected to be pay back within the coming year so they are classified as current liabilities. * Other Entity - The service fee that Tarrant Woods owed are liabilities that Tarrent Woods is presently obligated to make to another entity which is Bugsbegone. * Reliably measured - The total cost of spraying job (including GST) is $13200 which is printed on the invoice that Tarrant Woods received from Bugsbegone. * Probable - The present obligation that Tarrant Woods has will be enforced by the end of the month since Tarrant Woods has to pay the service fee according to the due date that Bugbegone has set.

2.

Expenses (completed spraying job) increased by $12000

* Using Future Benefits - The future benefits of the spraying job, for example, protecting the vines in order to maintain production level, ensuring the generation of revenue, etc., are used up since the service that Tarrant Woods purchased from Bugsbegone has been completed. * Reliably measured - The spraying service that has been completed has an agreed value of $12000 - stated on the tax invoice. * Related to Revenue - By spending $12000 on the spraying service, the vines of Tarrant Woods can be protected from diseases. Therefore, the production level will not be affected by diseases which may be able to cause devastating damage to their vines. And generation of revenue can be ensured as a result.

3.

Current Asset (GST Receivable) increased by $1200

* Future Benefits - GST receivable can be offset against GST Payable within the next twelve months
which is a future benefit to Tarrant Woods and also a current asset.

* Control - Tarrant Woods is the only one who has the control over the GST receivable and can utilize the
benefit.

* Reliably measured - The GST receivable has an agreed value of 10% of the agreed purchase price, i.e.
$1200, calculated by $1320011. * Probable - Tarrant Woods will receive or offset the GST from the government. Cash flow: Cash flow is unaffected as no cash transaction has taken place since Tarrant Woods purchased the spraying service on credit terms. Event One (31 August 2011):

1.

Current Asset(Cash at Bank) decreased by $13200

* Future Benefits - Cash used up on purchasing spraying service shows a consumption of future benefit.

* Control - Tarrant Woods have a full control over its cash at bank and can decide how to utilize them in a
way that will benefit the entity the most.

* Reliably measured - The withdrawal has an agreed dollar value of $13200. * Probable - The consumption on future benefit is expected to flow to Tarrant Woods. 2.
Current Liabilities (Account Payable - service fee including GST that TW owed Bugsbegone) decreased by $13200

* Present obligation - There are no more obligations between Tarrant Woods and Bugsbegone as TW
has already repaid the service fee to Bugsbegone, since TW has purchased a spraying service on 1 August 2011 in order to protect their vines. * Other Entity - The service fee that Tarrant Woods repaid are the liabilities that Tarrent Woods was previously obligated to make to another entity which is Bugsbegone. * Reliably measured - The total cost of spraying job (including GST) has an agreed value of $13200 which is printed on the invoice that Tarrant Woods received from Bugsbegone. * Probable - The obligation that Tarrant Woods owed Bugsbegone has be enforced by the end of the month. Cash Flow : Operating Outflow - Payment of $13200 to the supplier of the spray service (Bugsbegone) represents an outflow in operating activities. Event Two (20 July 2011):

1.

Current Asset(Cash at Bank) decreased by $3300

* Future Benefits - Cash used up on hiring marquee shows a consumption of future benefit. The marquee
rented by Tarrant Woods can be used to promote their current or new products which can help to generate more revenue in the future. The benefits are expected to flow to Tarrant Woods. * Control - Tarrant Woods have a full control over its cash at bank and can decide how to utilize them in a way that will benefit the entity most. * Reliably measured - The withdrawal has an agreed dollar value of $3300. * Probable - The consumption on future benefit is expected to flow to Tarrant Woods.

2.

Current Asset (Prepaid Expenses - hiring a marquee at the Yarra Valley Food & Wine race day (22 October 2011)) increased by $3000

* Future Benefits - Hiring a marquee on a Food & Wine race day can help to attract more new customers
and promote their products. Tarrant Woods might be able to generate more revenue in the future after organizing this promotional activity. The event is planned to be held on 22 October 2011 which means the prepaid expenses will be used within one year, so we classify it as current asset. * Control - Tarrant Woods have a full control over the marquee on the day which the Food & Wine race day is held on. TW can decide how to utilize it in a way that will benefit the entity most. * Reliably measured - Hiring a marquee at the Yarra Valley Food & Wine race day has an agreed value of $3000. * Probable - The benefits of hiring the marquee can be expected to flow to Tarrant Woods.

3.

Current Asset (GST Receivable) increased by $300

* Future Benefits - GST receivable can be offset against GST Payable within the next twelve months
which is a future benefit to Tarrant Woods and also a current asset.

* Control - Tarrant Woods is the only one who has the control over the GST receivable and can utilize the
benefit. * Reliably measured - The GST receivable has an agreed value of 10% of the agreed purchase price, i.e. $300, calculated by $330011.

* Probable - Tarrant Woods will receive or offset the GST from the government.
Cash Flow: Operating Outflow - Payment of $3300 to the organizer of the Yarra Valley Food & Wine race day represents an outflow in operating activities.

Event Two (20 July 2011): 1. Current Asset (Cash at Bank) increased by $3300

* Future Benefit - The cash refunded can be expected to use for other purposes, for example, improving
future production or generating more products etc. Spending money on improving production process or generating more products can help to increase revenue which is a future economic benefit and it is expected to flow to Tarrant Woods. * Control Tarrant Woods have a full control over its cash at bank and can decide how to utilize it in a way that will benefit the entity the most. * Reliably measured - The refund that Tarrant Woods received due to the cancellation of the event has an agreed value, which is $3300. * Probable - The future benefit of this refund for example, using it to improve production process, is expected to flow to Tarrant Woods.

2.

Current Asset (Cancellation of the Yarra Valley Food & Wine race day) decreased by $3000

* Future Benefits - Due to flooding and associated damage, the Food & Wine race day is cancelled. This
means the future benefits which can originally generated by hiring a marquee in the event will disappear. * Control - Tarrant Woods no longer have the control over the marquee on the day which the Food & Wine race day was originally planned to be held on. * Reliably measured - The refund of that Tarrant Woods received due to the cancellation of the Yarra Valley Food & Wine race day has an agreed value of $3000. * Probable - Since the event is cancelled, the benefits of hiring the marquee will no longer be expected to flow to Tarrant Woods.

3.

Current Asset (GST Receivable) decreased by $300

* Future Benefits - Since the money used to hire the marquee at the Food & Wine race day is refunded,
the future benefits of increased GST receivable, i.e. offsetting GST Payable within the next twelve months will no longer flow to Tarrant Woods. * Control - Tarrant Woods is the only one who has the control over the GST receivable and can utilize the benefit. * Reliably measured - The GST receivable has an agreed value of 10% of the agreed purchase price, i.e. $300, calculated by $330011. * Probable - Tarrant Woods will receive or offset the GST from the government. Cash Flow: Operating Inflow - The refund of $3300 from the organizer of the Yarra Valley Food & Wine race day represents an inflow in operating activities. Event Three (1 November 2011):

1. Current Asset (Cash at Bank) increased by $500

* Future Benefits - The deposit the couple paid can be expected to use for some operating activities or investing activities. Spending money on those activities can help to increase revenue which is a future economic benefit and is expected to flow to Tarrant Woods. * Control Tarrant Woods have a full control over its cash at bank and can decide how to utilize it in a way that will benefit the entity the most. * Reliably measured - The deposit that Tarrant Woods received from the local young couple has an agreed value, which is $500. * Probable - The future benefit of this deposit for example, using it to improve production process, is expected to flow to Tarrant Woods. 2. Current Liabilities (GST Payable) increased by $200 * Future Sacrifice GST Payable will be collected by the government in the form of cash. In order to pay the GST liability, Bank will decreases and there will be less assets to expand the production or improve the production process in the future. Therefore, GST Payable is a future sacrifice of economic benefits. * Present Obligation GST Payable is a future sacrifice of economic benefits that Tarrant Woods is presently obligated to pay back the government. Also, it has to be paid back within twelve months. Therefore it is a current liability. * Reliably measured The rate of GST is 10%. We can calculate the GST Payable by ($220011) which equals to $200. 3. Current Liabilities (Unearned revenue) increased by $2000

* Present Obligation - Tarrent Woods is presently obligated to let the local young couple to use their winery to hold their wedding on 28 November 2011. These liabilities are expected to be discharged within the coming year so they are classified as current liabilities. * Other Entity - The usage of the winery on 28 November 2011 are liabilities that Tarrent Woods is presently obligated to make to another entity which is the local young couple. * Reliably measured - The unearned revenue generated by promising to lend the winery to the couple has an agreed value of $2000 which is stated on the agreement. * Probable - The present obligation that Tarrant Woods has can be expected to be enforced on 28 November 2011 since Tarrant Woods is going to let the couple to use their winery to hold their wedding on that day. Cash Flow: Operating Inflow - The deposit of $500 from the local young couple represents an inflow in operating activities. Event Three (28 November 2011): 1. Current Asset (Cash at Bank) increased by $1700

* Future Benefits - The remainder that the couple paid can be expected to use for some operating activities or investing activities. Spending money on those activities can help to increase revenue which is a future economic benefit and is expected to flow to Tarrant Woods. * Control Tarrant Woods have a full control over its cash at bank and can decide how to utilize it in a way that will benefit the entity the most. * Reliably measured - The remainder that Tarrant Woods received from the local young couple has an agreed value, which is $1700 as stated in the agreement. * Probable - The future benefit of this remainder for example, using it to improve production process, is expected to flow to Tarrant Woods. 2. Current Liabilities (Unearned revenue) decreased by $2000

* Present Obligation - Tarrent Woods was previously obligated to let the local young couple to use their
winery to hold their wedding on 28 November 2011. These liabilities are discharged since Tarrant Woods have fulfilled their promise by lending their winery to them on 28 November 2011. * Other Entity - Letting the couple to hold their wedding day at the winery on 28 November 2011 are liabilities that Tarrent Woods was previously obligated to make to another entity which is the local young couple. * Reliably measured - The cost of borrowing Tarrant Woods winery for a day has an agreed value of $2000 which is stated on the agreement. * Probable - The obligation that Tarrant Woods had towards the couple was already enforced on 28 November 2011 by letting them to hold their wedding at the winery on that day.

3.

Revenue (earned by lending the winery) increased by $2000

* Increase in assets - By lending the winery to the local young couple, Tarrant Woods generates income
and the cash at bank has been increased. This means there is an increase in Tarrant Woods assets. * Reliably measured - The cost of holding an event on Tarrant Woods winery has an agreed value of $2000- stated in the agreement. * Related to Expenses- The revenue generated can be used to finance expenses. It can be used for buying new corks, paying transportation fees, etc. This can result in an increase in expenses. Cash Flow: Operating Inflow - The remainder of $1700 from the local young couple represents an inflow in operating activities. Event Four (26 January 2012) Since Tarrant Woods decided not to charge Eliza for venue hire to promote the winery, there is no transaction occurs between the entity and Eliza. Eliza and her husband paying weddingsRus on 26 January 2012 is considered as individual behaviour. It causes no effect on the operating, financing or investing activities of Tarrant Woods. Therefore, it does not affect any of the accounting elements. Cash Flow - Cash flow is unaffected as no cash transaction has taken place between Tarrant Woods and Eliza Fallon. Event Five (1 June 2012):

1.

Non current Asset (Second hand tractor) increased by $50000

* Future Benefits - The tractor is expected to be used to improve production process which will contribute
to the earning of revenue in the future. It can be used to generate future economic benefits and are expected to flow to Tarrant Woods. It is a non-current asset since normally the working life of a tractor is expected to be more than twelve months. * Control - Tarrant Woods has a full control over the second hand tractor as they can control when the tractor is used, how often it is to be used etc. * Reliably measured - The tractor is bought under an agreed dollar value based upon exchange i.e. $50000 as stated in the contract. * Probable - the benefits that the tractor can generate for example, generating more products, can be expected to flow to Tarrant Woods. 2. Current Asset(Cash at Bank) decreased by $10000

* Future Benefits - Cash used up on paying Thomas Schuitz on the day of contract signing shows a consumption of future benefit. The second hand tractor bought by Tarrant Woods can be used to improve efficiency in production process which can help to generate more revenue in the future. The benefits are expected to flow to Tarrant Woods.

* Control - Tarrant Woods have a full control over its cash at bank and can decide how to utilize them in a
way that will benefit the entity most.

* Reliably measured - The withdrawal has an agreed dollar value of $10000. * Probable - The consumption on future benefit is expected to flow to Tarrant Woods.
3. Current Liabilities (installment in the first year) increased by $10000

* Present Obligation - The installment that Tarrent Woods owed Thomas Schuitz is a future sacrifice of
economics benefits that Tarrent Woods is presently obligated to pay back at the end of the year. These liabilities are expected to be pay back within the coming year so they are classified as current liabilities. * Other Entity - The installment that Tarrant Woods owed are liabilities that Tarrent Woods is presently obligated to make to another entity which is Thomas Schuitz. * Reliably measured - The installment per year has an agreed dollar value of $10000 which is stated in the contract. * Probable - The present obligation that Tarrant Woods has will be enforced by the end of the year since Tarrant Woods has to pay the installment according to the due date that the contract has set (1 June 2013). 4. Non-current Liabilities (installments in the second and third year) increased by $20000

* Present Obligation - The installments that Tarrent Woods owed Thomas Schuitz is a future sacrifice of
economics benefits that Tarrent Woods is presently obligated to pay back on the second and third year after the contract has been signed. These liabilities are expected to be discharged after three years so they are classified as non-current liabilities. * Other Entity - The installments that Tarrant Woods owed are liabilities that Tarrent Woods is presently obligated to make to another entity which is Thomas Schuitz. * Reliably measured - The installments which Tarrant Woods has to pay on the second and third year has an agreed dollar value of $20000, which is calculated by $10000 x 2 * Probable - The present obligation that Tarrant Woods has is expected to be enforced on the second and third year since Tarrant Woods has to pay the installment according to the due date that the contract has set. 5. Equity (the remainder is paid in Tarrant Woods Shares) increased by $10000

* Residual Interest - It is calculated by ($50000-$10000-$10000-$20000) which is equal to $10000 according to the equation :Equity = Assets - Liabilities. Cash Flow: Investing Outflow - The payment of $10000 made upon the day of signing contract represents an outflow in investing activities.