Just confused about the question 1 and question 3. thanks a lot!

Unit: ACC101 - Fundamentals of Accounting I Submission Date: 9-Dec-2016 before 5.00 pm Weighting: The assignment is worth 40% of the total unit weight. Instructions: 1. Students are required to cover all stated requirements. 2. Your answer must be uploaded to Moodle in word file with your full name and student ID number. 3. You need to support your answers with appropriate Harvard style references where necessary. 4. Only include information in your appendixes that has been directly referred to in the body of your document. 5. Include a title/cover page containing the subject title and code and the name, student id number and name. 6. Please save the document as ACC101_B1T22016_first name_Surename_Student Number Eg:ACC101_B1T22016_John_Smith_20160000 1 Question 1: Control Account and Subsidiary ledgers (15 marks) The post-closing trial balance of Pollack Ltd as at I November 2012 contained the following normal balances: Account no. 1100 1120 1130 1140 1150 1160 1210 1215 1220 1225 2110 2120 2150 3110 3120 4110 4115 4120 5110 5115 5120 5130 5140 5150 Account title Cash at Bank Accounts Receivable Bills Receivable Inventory Prepaid Insurance GST Outlays Delivery Vehicle Accumulated Depreciation - Delivery Vehicle Office Equipment Accumulated Depreciation - Office Equipment Accounts Payable Bills Payable GST Collections Share Capital Retained Earnings Sales Sales Returns and Allowances Discount Received Purchases Purchases Returns and Allowances Discount Allowed Rent Expense Electricity Expense Salaries Expense Account balance $120 000 14 540 1 500 160 000 4 000 80 000 8 000 48 000 8 000 11 560 7 000 384 000 9 480 Subsidiary ledger balances at 31 October 2012 were: Accounts Receivable Customer D. Draper C. Hand T. Tremble Date of sale 28 October 30 October 18 October Terms 2/10, n/30 2/10, n/30 2/10, n/30 Amount $4 200 4 620 5 720 Accounts Payable Creditor Laws Ltd M. Merlow Lenny Ltd Date of purchase 19 October 10 October 23 October Terms 1/30, n/60 n/30 1/15, n/30 Amount $3 280 5 300 2 980 Nov. 1 Bought inventory from M. Merlow on credit, $4800 plus GST; terms n/30. Purchased 1 year's insurance cover for $1800 plus GST, cheque no. 400. 3 Inventory sold to C. Hand last month was returned. Issued an adjustment note for the amount of $110 (including GST). Received a cheque from D. Draper to cover the sale made on 28 October. 4 Paid Lenny Ltd cheque no. 401 for purchase of 23 October. Purchased inventory from Laws Ltd on credit, $4800 plus GST; terms 1/10, n/60. 5 Issued cheque no. 402 for $3300 to M. Merlow on account, and issued a 60-day 10% bill 2 payable for the balance due on the purchase of 10 October 8 12 Paid November rent of premises $1080 plus GST, cheque no. 403. Paid Laws Ltd for the purchase of 19 October, cheque no. 404. Sold inventory on account to A. Arnott, $9000 plus GST; terms 2/10, n/30. Received cash for the issue of additional share capital, $60 000 (GST-free). Received cheque for $2860 from T. Tremble in part payment of the sale made on 18 October, together with a bill receivable for the balance due. Sold merchandise to D. Draper on account, $9600 plus GST; terms 2/10, n/30. 13 Purchased goods on credit from Lenny Ltd, $7920; terms 1/15, n/30 (including GST). 14 Paid fortnightly salaries by cheque no. 405, $2400. Cash sales from 1 November to 14 November, $18 400 plus GST. 18 Sold goods to T. Tremble on account, $9300 plus GST; terms 2/10, n/30. 19 Received an adjustment note from Lenny Ltd for $154 for defective goods returned (includes GST). Forwarded cheque no. 406 to ATO to cover GST owing from previous month, $3000. 10 11 20 A. Arnott forwarded a cheque for $2640 on account; no discount was allowed. Purchased goods for cash. Issued cheque no. 407 for $10 800 plus GST. 21 26 Received a cheque from D. Draper for $1320 and a promissory note (bill receivable) for the balance of his account; no discount was allowed. T. Tremble forwarded a cheque for the goods sold on 18 November. 27 28 Paid Lenny Ltd for the purchase made on 13 November, cheque no. 408. Paid fortnightly salaries with cheque no. 409, $2400 (GST-free). 30 Electricity account paid by cheque no. 410, $420 plus GST. Cash sales from 15 November to 30 November, $18 000 plus GST. Purchased inventory on credit from Lenny Ltd, $7260; terms 1/15, n/30 (includes GST). Required A. Record the November transactions (round amounts to the nearest dollar) in appropriate special journals and the general journal. B. Open running balance accounts in the subsidiary ledgers and their control accounts in the general ledger, and enter the opening details of these accounts. C. Post relevant data from the journals to the appropriate running balance subsidiary ledger accounts. D. Prepare schedules of accounts receivable and accounts payable as at 30 November 2012, and reconcile to the appropriate subsidiary ledger control accounts in the general ledger. E. Prepare the GST Collections and GST Outlays accounts as they would appear at 30 November 2012. 3 Question 2: Journal Entries, Discounts, Closing Entries and Income Statement- Both Perpetual and Periodic Inventory Systems (15 marks) Starbright Lighting buys lamps for $40 each and sells them for $70 each. On 1April 2013, 24 lamps were in inventory. Starbright Lighting completed the transactions below during April. April 3 Purchased 40 lamps on account. Terms: 2/10, n/30, EXW supplier's warehouse. 4 5 Paid freight cost of $60 on 3 April purchase. 9 13 Returned 10 of the lamps purchased on 3 April and paid the amount due on the lamps retained in stock. A customer returned 3 of the lamps sold on 5 April. The lamps were not defective and were returned to stock. Purchased 20 lamps on credit. Terms: 2/10, n/30, EXW supplier's warehouse. 14 19 Received payment from customer for the amount due on 5 April sale. Sold 39 lamps for cash at $60 each. 20 Four of the lamps sold on 19 April were returned by the customer for a cash refund. The lamps were not defective. Paid the supplier the amount owed for the 13 April purchase. 10 22 Sold 22 lamps on account. Terms: 3/10, n/30, DDP acquirer's warehouse. Paid freight cost of $30. A physical inventory count taken on 30 April 2013 showed 20 lamps in stock. Required A. In two columns and ignoring GST, prepare general journal entries to record the transactions assuming: 1. a perpetual inventory system is used 2. a periodic inventory system is used. Narrations are not required. B. Repeat requirement A but assume the business is registered for the GST. C. Assuming Starbright closes its accounts at month-end, prepare relevant entries to close the accounts under both inventory systems. 4 Question 3: Adjusting the accounts and preparing financial statements (10 marks) The following trial balance was prepared from the ledger accounts of Taiwan Consultants a firm of management consultants. Taiwan Consultants Unadjusted Trial Balance as at 30 June 2011 Debit Bank Stock office supplies on hand Office equipment Accumulated depreciation, office equipment Premises Accumulated depreciation, premises Accounts payable GST collections GST outlays Accounts receivable Fees revenue Rent revenue Advertising expense Administrative expenses Salaries Internet service provider Interest expense Telephone expense Loan (due 1 Sept 2015) Capital - L. Lee Drawings - L. Lee $ 41,520 11,890 152,000 Credit $ 24,400 800,000 64,000 33,000 5,500 3,500 46,000 880,600 16,000 25,000 30,000 390,000 2,000 19,000 8,000 200,000 345,410 40,000 $1,568,910 $1,568,910 Adjustments: Salaries are $1500 per day. They are paid weekly in arrears. The next pay day is July 3 which is a Wednesday. Depreciation on premises is 2% pa, on a straight-line basis. Depreciation of office equipment is 10% of the equipment's cost. On 1 January, 2011. Taiwan Consultants rented part of its premises to T. Light for 12 months and received a cheque for $16,000 representing the whole year's rental. Office supplies of $6,390 had been used during the year. Office supplies of $5,500 were on hand at the end of the period. Advertising of $2,000 was prepaid for an advertising campaign starting in July 2011. $6,000 is owing for consulting work completed but not yet billed to the client. Required a) b) c) Prepare general journal entries for the balance day adjustments. Prepare an Income Statement for the year ended 30 June 2011. Prepare a classified Balance sheet as at 30 June 2011. 5 Taiwan Consultants Unadjusted Trial Balance As at June 30, 2011 Bank Stock Office supplies on hand Office Equipment Accumulated Depreciation - office Equipment Premises Accumulated Depreciation - Premises Accounts Payable GST Collections GST Outlays Accounts receivables Fees revenue Rent revenue Advertising expenses Administrative Expenses Salaries Internet service provider Interest expenses Telephone Expenses Loan (due Sep 1, 2015) Capital - L. Lee Drawings - L. Lee a) Debit Credit 41520 11890 152000 24400 800000 64000 33000 5500 3500 46000 880600 16000 25000 30000 390000 2000 19000 8000 200000 345410 40000 1568910 1568910 Date 30-Jun 30-Jun 30-Jun 30-Jun 30-Jun 30-Jun 30-Jun General Journal Salaries Salary Payable (1500 x 2) Debit Credit 3000 3000 Depreciation Expenses - Premises Accumulated Depreciation - Premises (800000 x 2%) 16000 Depreciation Expenses - Office Equipment Accumulated Depreciation - Office Equipment (152000 x 10%) 15200 16000 15200 Rent Revenue Unearned Rent Revenue (16000 / 2) 8000 Office Supplies Expenses Stock Office supplies on hand 6390 Prepaid Advertising Advertising Expenses 2000 Accounts Receivable Fees Revenue 6000 8000 6390 2000 6000 b) Taiwan Consultants Income Statement For the Year Ended June 30, 2011 Revenue: Fees revenue Rent revenue Total Revenue Expenses: Advertising expenses Administrative Expenses Salaries Internet service provider Interest expenses Telephone Expenses Depreciation Expenses - Premises Depreciation Expenses - Office Equipment Office Supplies Expenses Total Expenses Net Profit c) 886600 8000 894600 23000 30000 393000 2000 19000 8000 16000 15200 6390 512590 382010 Taiwan Consultants Balance Sheet As on June 30, 2011 Assets Current Assets Bank Stock Office supplies on hand Accounts receivables Prepaid Advertising Total Current Assets 41520 5500 52000 2000 101020 Non Current Assets Office Equipment Less: Accumulated Depreciation - Office Equipment Premises Less: Accumulated Depreciation - Premises 152000 39600 112400 800000 80000 720000 Total Non Current Assets Total Assets 832400 933420 Liabilities Current Liabilities Accounts Payable Salaries Payable GST Payable (5500-3500) Unearned Rent Revenue Total Current Assets 33000 3000 2000 8000 46000 Long Term Liabilities Loan (due Sep 1, 2015) Total Long Term Liabilities Total Liabilities 200000 200000 246000 Owner's Equity Capital - L. Lee - July 1st 2010 Add: {rofit for the Year Less: Drawings Capital - L. Lee - June 30, 2011 Total Liabilities and Owner's Equity 345410 382010 40000 687420 933420