ACC1AMD – Fundamentals of Accounting

GENERAL INFORMATION

• Please note that assignments submitted the fifth (5th) day after the due date are not accepted for
  marking as per university policy.
• If you require an extension to submit your assignment, please complete your extension request using
  the link in the ‘Assessments’ section of the LMS.
• Assignments must be presented in accordance with the “Assignment Presentation Guide”

SUBMISSION:

• DUE DATE: Sunday 1st of June 2025 by 11.59pm (Week 12)
• Submitted via ‘Individual Assignment Submission’ link in ‘Assessments’ section of LMS.
• Your submission must be in one (1) pdf file and one (1) excel file.
  WORD LIMIT: Approximately 1,875 words (excluding figures, tables, charts, visuals, and references).
  There is a variance allowance of +/- 10%. Some questions have been provided with a specific word limit,
  the remaining balance is an equivalency for the numerical questions. Please ensure you follow the
  guidelines where set with the +/- 10% allowance.
  NOTE: you are expected to follow the word count where advised, the balance is considered an
  “equivalence” for the work required. There is no need to report the word count on the front page.

RELEVANT SUBJECT LEARNING INTENDED OUTCOMES
SILO 1 – Explain the role of accounting in the business environment
SILO 2 – Apply fundamental accounting concepts and ethical principles in recording and reporting
business transactions.
SILO 3 – Prepare basic financial statements and analyse financial reports for decision-making purposes.
SILO 4 – Use information communications technology (ICT) in the process of reporting, recording and
analysing accounting information.

GRADUATE CAPABILITIES ASSESSED

• GC 1 – DISCIPLINE KNOWLEDGE AND SKILLS
• GC 2 – PERSONAL AND PROFESSIONAL – Ethical and Social Responsibility
• GC 3 – COMMUNICATION – Digital capability
• GC 4 – COMMUNICATION – Communicating and Influencing
• GC 5 – INQUIRY AND ANALYSIS – Critical Thinking and Problem-Solving
  RATIONALE
  Purpose of this assessment is to:
  (a) reinforce your knowledge with respect to the accounting cycle
  (b) explain and justify the reason for specific accounting policy choices
  (c) analyse financial accounting statements

TASK
You are required to construct the accounting records and compile a business report answering questions
1-7 below in the order presented. You may use your business from assignment 2 as a foundation, or you
can construct a new business. Your business must sell a product (include inventory and cost of sales) and
you are required to account for GST.

NOTE: Question 7 is not related to your business.

References are required to support your answers when methods and justification are required.

You will submit both your business report and the excel spreadsheet with your calculations.

Question 1 (Week 9) (5 marks)
Using the excel “Worksheet” approach covered in week 9, assume your business commenced on the
1st of July 2024 and construct the opening balances of your Trial Balance at the 1st of July 2025,
assuming a private company business structure. These are figures you will have determined to be
“reasonable” for your business but no references are required. Don’t forget to leave space to include
the fixed asset from question 4, at this point it will have an initial balance of zero.

You are required to account for GST.

As a minimum you will need to include inventory, accounts receivable, accounts payable, sales and cost
of sales in your records, GST receivable and GST payable. You may add more accounts if you deem
them appropriate. (Hint: don’t forget your Share Capital and Retained Earnings accounts).

Question 2 (Week 9) (15 marks)
It is now the 30th of June 2026. In the worksheet compiled in question 1 construct the Unadjusted Trial
Balance as at the 30th June 2026 with updated values given there has been twelve (12) months of
transactions. (Essentially you are constructing your own Unadjusted Trial Balance at the 30/6/26. These
are figures you will have determined to be “reasonable” for your business but no references are
required).
In your General Journal record five (5) adjusting entries that are required to be posted at the
30th of June 2026.
Exclude General Journal entries with respect to Question 3 allowance for doubtful debts and Question
4 depreciation expense from this question.

Question 3 (Week 8) (5 marks)
Calculate your allowance for doubtful debts at the 30th of June 2026 using the net credit sales method.
Assume 2.5% of all credit sales will not pay their account. (Hint: you will need to determine the total
credit sales net of any returns for the 12 months of operations). Assume there is a zero balance in the
provision, include your workings, and record the required adjusting entry in the General Journal.

Question 4 (Week 8) (5 marks)
Assume you purchased an additional non-current fixed asset on the 1st April 2026. Select and justify the
most appropriate depreciation method (50 words).
Record the depreciation adjustment required at the 30th of June 2026 in the General Journal (show your
calculation). You can use the asset from assignment 2 and adjust the dates or you can select a new fixed
asset.

Question 5 (Weeks 2-9) (20 marks)
Using the worksheet you have compiled in question 2 in respect to the 30th of June Unadjusted Trial
Balance, post all adjusting entries recorded in the General Journal in questions 2, 3 and 4 to the
“adjusting” column and produce the Adjusted Trial Balance as at the 30th of June 2026.

Please refer to the worksheet reinforcement question covered in week 9 to support you in answering
this question. You will have the Unadjusted Trial Balance at the 1/7/25 from question 1, then the
Unadjusted Trial Balance at the 30/6/26 from question 2, adjusting entries from questions 2-4, and
finally the Adjusted Trial Balance at the 30/6/26.

Using the 30th of June 2026 Adjusted Trial Balance prepare the financial statements for your business in
excel using appropriate headings and layout (not within the worksheet). You should prepare the
Income Statement, Statement of Changes in Equity and the Balance Sheet for the year ended 30th June

2026. Finally, prepare the General Journal closing entries at the 30/6/26 to prepare the accounting records
      for the 1/7/2026 financial year (these do not need to be posted into the worksheet).

Separately, you have been provided with a Cash Flow Statement that reveals you have had an overall
decrease in cash for the 12 months of $30,000. Explain the possible causes for this decrease by
discussing the potential impacts from the operating, investing and financing sections of the Cash Flow
Statement (please do not prepare the statement) (250 words).

Question 6 (Week 11) (20 marks)
Explain the key differences in reporting methods of the equity section from a private/public company to
a partnership and a sole trader (Hint: explain the methods and differentiate).
Explain the two different methods of accounting for a partnership. Finally, discuss the taxation
treatment of earnings between a private company, partnership and sole trader (300 words).

Assume your business now comprises 2 partners, state which partnership method you will use to
account for partnership equity. Using the Share Capital balance in Q5 compile the equity section of the
Balance Sheet based on one partner’s equity being 45% and the other 55%. If you have recorded any
dividends convert these to drawings using the partner’s equity split.

Question 7 (Week 12) (20 marks)
Select a publicly listed Australian company, that is not banking or service orientated. Explain who they
are and their main business activities.
Using the library database “DatAnalysis Premium” type your company code into the
search bar and you will have access to a range of data.
On the left-hand side of the screen select “financial data” (3rd from the bottom of the list).
Select the “ratio” tab and download three years of data into excel.

Required: review the following ratios of your business and draw a conclusion with respect to each ratio
as to how your business is performing for the last 3 years. This is not to be written in financial investing
language, rather you are to interpret the information similarly to the work we undertook in class.

Liquidity – Current ratio
Profitability – Net Profit Margin and Return on Equity (ROE)
Leverage/Solvency – Net interest cover
Efficiency – Property Plant and Equipment turnover, Days inventory, Days receivables
and Days payables

Note: include the downloaded data in a worksheet in your excel file and a summary table of the
selected ratio data in your final word document. (300 words)

Presentation (10 marks)
Assignments must be presented in accordance with the “Assignment Presentation Guide”.
Please ensure you review this presentation guide and compile your assignment as a business report using
the automated front page, table of contents, headings, page numbering and layout.

• Word cover page with no page number
• Automated table of contents with the page number (i)
• Report with page numbers commencing with 1
• References on a separate page at the end
• Look professional
• Submitted as a pdf
• Submit your excel workbook with all workings

INSTRUCTIONS/REQUIREMENTS
Assignments must be presented in accordance with the “Assignment Presentation Guide” on the LMS.
Please ensure you review this presentation guide and compile your assignment as a business report using
the automated front page, table of contents, headings, page numbering and layout.

FORMATS

• Your submission must be in one (1) pdf file and one (1) excel file.
• Your final business report is to be compiled in Word and saved as a pdf.
• You will use Excel for your worksheet, calculations, general journal entries and financial
  statements. Copy the information into your Word document that will be formatted and
  presented in a professional manner. You are also required to submit your workings in excel.

REFERENCES AND SUPPORT

• References are to be included, they will relate to your prescribed text and the websites from
  where you have gathered data for your transactions. APA 7 referencing is required.

MARKING RUBRIC

Please take the time to review the marking rubric on the following pages.

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