(i) Reconstruct the Lucy Ltd general ledger accounts and journal entries provided in the answer booklet.

(ii) Prepare the Statement of Cash Flows for Lucy Ltd, in accordance with NZ IAS 7 Statement of Cash Flows, for the year ended 31 March 2021.

Accounting 211 ASSIGNMENT 2 Semester 1 2021 Question 1 The following information has been extracted from the financial records of Lucy Ltd: As at: Cash Accounts receivable Allowance for DD Inventory GST receivable/payable Plant and cquipment al cost Accumulated Depreciation Bank overdraft Accounts payable Interest expense payable Dividends payable Incepe tax payable Long-term borrowings Share capital Retained earnings For the year ended 31 March 2021: Sales Caxt of goxxis sold Operating expenses Doubtful debts expense Interest expense | Depreciation expense Loss on sale of plant and equipment Thx expense 31 March 2021 31 March 2020 SI 500 $275 6 345 5 600 320 290 7 000 7 240 20 Dr 81 C 55 025 50 000 16 000 13 500 900 200 7 492 5 396 10 15 150 70 200 30 3 000 15 000 9 000 26 818 34 533 $70 000 $ 48 X10 24 690 310 165 3 200 500 400 Additional information: 1. Lucy Ltd uses the indirect method for reporting cash flows from operating activities. 2. The entity classifics dividends paid and interest paid as cash flows from financing activities. 3. An item of equipment was sold for S2,000 cash. Required: () Reconstruct the Lucy Ltd general lodger accounts and journal entries provided in the an- swer booklet (ii) Prepare the Statement of Cash Flows for Lucy Ltd, in accordance with NZ IAS 7 State ment of Cash Flows, for the year ended 31 March 2021. (ii) Prepare the Statement of Cush Flows for Lucy Ltd, in accordance with NZ IAS 7 State- mf Cash Flow, for the year endel 31 March 2021 bul assure Lucy Lidl uses the direct metbod for reporting cash flows from wating activities. Page 2 of 3 2 Accounting 211 ASSIGNMENT 2 ANSWER BOOKLET Semester 1 2021 ASSIGNMENT 2 ANSWER BOOKLET Note: Your responsibility is to ensure this assignment successfully submitted before 6 pm on Friday, 19 March 2021. What does successfully submitted mean? It means your completed Assignment 2 Answer Booklet word document was accepted by Srcederader and the said document is downloadable and readable by the AOCTG 211 markers. Welcome back! Question 1 Reconstruct the following Lucy Ltd general ledger accounts and journal entries: Accounts receivable GST GST esclus GST USE ++ *The journal entry would have been: **The journal entry would have been: Allowance for DD Question ! ( continued: GST payahle receivable Inventer Plant and Equipment AD # The joumul entry would have been: Question 1 (i) continued Accounts payable CIST inclus CIST GIST exclusive CST maliwa The journal entry would have been: Interest expense pavable Dividends payable Income tax payable Page 3 of 11 Question 1 continued L.TR Share capital Relained earnings Lucy Ltd classified interest expense paid, and dividends paid as cash flows from financing activities. What if Lucy Ltd had used the alternative classification for these two items? Complete the table in the answer booklet to illustrate the effect of using a different classification, for these two items, on the Statement of Cash Flows and notc. Ensure you provide detail of the parts of the CFOA (and Reconciliation) affected. For cxample: After the cash gencrated from opcrations' line. Insert your answers from Question 1: Your alternative classification answer: (ii) The indirect method was used: (ii) The indirect method was used: CFOA CFOA s CFIA CFIA CFFA CFFA (iii) The direct method was used: (iii) The direct method was used: CFOA CFOA CFIA CFIA 1 CFFA CFFA and Reconciliation: and Reconciliation: 12 Accounting 211 ASSIGNMENT 2 Semester 1 2021 Question 1 The following information has been extracted from the financial records of Lucy Ltd: As at: Cash Accounts receivable Allowance for DD Inventory GST receivable/payable Plant and cquipment al cost Accumulated Depreciation Bank overdraft Accounts payable Interest expense payable Dividends payable Incepe tax payable Long-term borrowings Share capital Retained earnings For the year ended 31 March 2021: Sales Caxt of goxxis sold Operating expenses Doubtful debts expense Interest expense | Depreciation expense Loss on sale of plant and equipment Thx expense 31 March 2021 31 March 2020 SI 500 $275 6 345 5 600 320 290 7 000 7 240 20 Dr 81 C 55 025 50 000 16 000 13 500 900 200 7 492 5 396 10 15 150 70 200 30 3 000 15 000 9 000 26 818 34 533 $70 000 $ 48 X10 24 690 310 165 3 200 500 400 Additional information: 1. Lucy Ltd uses the indirect method for reporting cash flows from operating activities. 2. The entity classifics dividends paid and interest paid as cash flows from financing activities. 3. An item of equipment was sold for S2,000 cash. Required: () Reconstruct the Lucy Ltd general lodger accounts and journal entries provided in the an- swer booklet (ii) Prepare the Statement of Cash Flows for Lucy Ltd, in accordance with NZ IAS 7 State ment of Cash Flows, for the year ended 31 March 2021. (ii) Prepare the Statement of Cush Flows for Lucy Ltd, in accordance with NZ IAS 7 State- mf Cash Flow, for the year endel 31 March 2021 bul assure Lucy Lidl uses the direct metbod for reporting cash flows from wating activities. Page 2 of 3 2 Accounting 211 ASSIGNMENT 2 ANSWER BOOKLET Semester 1 2021 ASSIGNMENT 2 ANSWER BOOKLET Note: Your responsibility is to ensure this assignment successfully submitted before 6 pm on Friday, 19 March 2021. What does successfully submitted mean? It means your completed Assignment 2 Answer Booklet word document was accepted by Srcederader and the said document is downloadable and readable by the AOCTG 211 markers. Welcome back! Question 1 Reconstruct the following Lucy Ltd general ledger accounts and journal entries: Accounts receivable GST GST esclus GST USE ++ *The journal entry would have been: **The journal entry would have been: Allowance for DD Question ! ( continued: GST payahle receivable Inventer Plant and Equipment AD # The joumul entry would have been: Question 1 (i) continued Accounts payable CIST inclus CIST GIST exclusive CST maliwa The journal entry would have been: Interest expense pavable Dividends payable Income tax payable Page 3 of 11 Question 1 continued L.TR Share capital Relained earnings Lucy Ltd classified interest expense paid, and dividends paid as cash flows from financing activities. What if Lucy Ltd had used the alternative classification for these two items? Complete the table in the answer booklet to illustrate the effect of using a different classification, for these two items, on the Statement of Cash Flows and notc. Ensure you provide detail of the parts of the CFOA (and Reconciliation) affected. For cxample: After the cash gencrated from opcrations' line. Insert your answers from Question 1: Your alternative classification answer: (ii) The indirect method was used: (ii) The indirect method was used: CFOA CFOA s CFIA CFIA CFFA CFFA (iii) The direct method was used: (iii) The direct method was used: CFOA CFOA CFIA CFIA 1 CFFA CFFA and Reconciliation: and Reconciliation: 12