Guidance for the Question:-

Question 3 (3 marks) Jimmy acquired Acropolis Now, a traditional Mediterranean themed caf in the city of Melbourne, from his retiring father in 2020. Shortly after taking over, Jimmy realised the need to modernise the caf and so is seeking to obtain finance for renovations and new caf equipment. Jimmy was asked by his bank to provide financial statements for his business for the first six months of operations, as part of a loan application. Jimmy's accountant is ill and cannot assist for another month. As Jimmy has no experience in accounting, he watched some "how to prepare financial statements" videos he discovered online and then prepared the financial statements on the next page: $ Acropolis Now Cafe Statement of Profit or Loss As at 30 June 2021 Income Income received in advance Service revenue Accounts receivable Cash at bank Total income Expenses Utilities expense Supplies expense Prepaid rent Depreciation expense Rent expense Wages expense Total expenses 6,750 97,200 7,830 20,925 132,705 6,885 13,365 6,750 6,750 27,000 28,350 89,100 43,605 Net profit $ Acropolis Now Cafe Balance Sheet For the period ending 30 June 2021 Current Assets Supplies Delivery vehicles Total Current Assets Non-Current Assets Kitchen equipment Total Non-Current Assets Total assets 16,740 67,500 84,240 19,035 19,035 103,275 Current Liabilities Accounts payable Bank loan (due in 2024) Total Current Liabilities 12,960 27,000 39,960 Net profit 43,605 Acropolis Now Cafe Balance Sheet For the period ending 30 June 2021 Current Assets Supplies Delivery vehicles Total Current Assets Non-Current Assets Kitchen equipment Total Non-Current Assets Total assets 16,740 67,500 84,240 19,035 19,035 103,275 Current Liabilities Accounts payable Bank loan (due in 2024) Total Current Liabilities Total liabilities 12,960 27,000 39,960 39,960 Net Assets 63,315 Owner's Equity Capital Total equity 92,070 92,070 After learning that you are currently studying Dollars and Sense at La Trobe College, Jimmy has asked you for advice in the form of a brief written report. Your report should: a) Describe the purpose of each of the financial statements above (100 words). (0.5 mark) b) List any errors Jimmy has made in these financial statements and then briefly explain to Jimmy the correct treatment (200 words). (2.5 marks) Page 3 of 3 BBUSIDAS Assignment 14750 words), T3, 2021 BBUS1DAS Assignment 1 10 marks total General information and requirements This is an individual assignment due for submission on Sunday, 14 November 2021, 11:59 PM. Assignment Length Each question provides a guide as the approximate word length of each answer. It is recommended you are close to these limits, but you do not need to achieve them exactly. I have allowed slightly more words than is allocated in the course as this is actually easier for students. Any student that is at the lower end will not be penalised provided the question has been fully answered. Please ensure your overall assignment is +/- 10% of the total word limit. Assignments that vary significantly from these guidelines will be marked down. Submission All submissions must be typed in a minimum 11 font, with 1.5 line spacing using word and submitted via the submission link on Moodle as a pdf file. Please refer to the online marking rubric for marking guidance. Referencing All submissions will be reviewed by a program called "Turnitin" and this will identify instances of plagiarism (copying). This is a very serious offence and can result in you receiving no marks for the assessment task. Refer to the subject learning guide for additional details regarding plagiarism. Please ensure if you have copied information you use quotation marks and appropriate referencing. If you reword someone else's work you still need to refer to the author(s) in your sentence. For example, Ashman (2020) discusses how....... - whilst this is not a quote you need to reference the idea. The library provides specific guidance for referencing. This assignment requires you to analyse real events. If you copy financial reports from the internet it will be obvious and no marks will be awarded, even if correctly referenced. The purpose of the assignment is to develop your analytical skills which are not those of an investment advisor. A small amount of referenced information will be acceptable the focus is to be on your interpretation This assignment requires you to analyse real events. If you copy financial reports from the internet it will be obvious and no marks will be awarded, even if correctly referenced. The purpose of the assignment is to develop your analytical skills which are not those of an investment advisor. A small amount of referenced information will be acceptable, the focus is to be on your interpretation. Assignment Presentation Refer to the "Assignment 1 Presentation Guide" available under the heading "Assignment One (10%)" in the Assessments tile/section. Graduate Capabilities This subject assesses the following graduate capabilities: Writing 3 marks Critical thinking 2 marks Creative Problem-solving 2 marks Ethical behaviour 3 marks Late Assignment Penalty "The standard penalty for late submission of assessment tasks is 5% of the marks for that task for each delay in submission of a day or partial day up to a maximum of five (5) working days after the due date." Page 1 of 3 BBUSIDAS - Assignment 1 (750 words), T3, 2021 Presentation Assignments must be presented in accordance with the "Assignment 1 Presentation Guide" available under the heading "Assignment One (10%)" in the Assessments tile/section. (2 marks)