Task One: (LOS 1,2,3 & 5) (84 Marks) Required: Assuming the role of Robo Technology accountants, refer to the preceding business documents and the additional information to: A. Follow the necessary steps of the accounting cycle that include the process of recording transactions up to adjusting accounts (50 marks) B. Prepare the following end of 31 December 2021 financial statements (16 marks) Statement of Profit or Loss Statement of Changes in Owner's Equity Statement of Financial Position Notes for A. & B.: Round all your workings to the nearest BHD. C. Prepare a memorandum to the owner of Robo Technology on the company's profitability and efficiency by computing and commenting on two ratios for each group (400 words +/-10%). (10 marks) Marking scheme Calculation of appropriate ratios 4 marks Basic interpretation of ratios 4 marks Communication skills 2 marks Total 10 marks D. Discuss whether the financial statements of Robo Technology are presented fairly, in a manner that fulfills the "faithful representation' qualitative catechistic of financial information. Your discussion should include illustrative accounting examples and references, where appropriate. Word count: (600 words +/-10%). (8 Marks) Marking scheme Defining and explaining the context of faithful 2 marks representation as a qualitative characteristic of financial information Providing four relevant and illustrative accounting 4 marks examples from the case to support your argument Communication skills and referencing 2 marks Total 8 marks Additional Information related Robo Technology On 30 November, Robo Technology purchased supplies on credit worth BHD230. The accountant recorded the transaction as follows: Debit Credit Supplies BHD230 Trade Receivables BHD230 The prepaid insurance of BHD12,600 relates to an insurance premium paid on 30 November to cover 12 months, effective from 1 December 2021. On 1 December, Robo Technology purchased additional equipment on account to use in business operations with a purchase price of BHD4,800, transportation cost of BHD10, insurance while in transit costing BHD30 and discount of BHD250. On 2 December, the owner of Robo Technology invested additional cash BHD80,000. On 3 December, the customer returned one Huawei Nova 71 128GB Midnight Black 4G Dual Sim Smartphone 1 December Receipt no 152. On 24 December, the owner of Robo Technology withdrew BHD1,200 from the business bank account On 24 December, Robo Technology invested in ordinary shares BHD36,000 with the intent of selling the investment in the very near future for a quick profit. . On 31 December, Robo Technology signed a mortgage loan agreement to purchase a Land with Bank of Bahrain and Kuwait (BHD25,000 as a down payment and a 25-year mortgage for BHD60,000). Robo Technology has the policy to pay current month salaries on the second day of the next month. The total salaries for the month of November and December 2021 amounts to BHD45,250 per month On 31 December, Robo Technology returned Google Pixel Slate 12.3-Inch 2 in 1 Tablet Intel Core 15, 8GB RAM, 128GB, Midnight Blue BHD690 (cost BHD657 and VAT 33) to Google Robo Technology estimated the allowance for receivables at 2% of trade receivables. Robo Technology determines the amount of inventory at the end of each accounting period, following a physical inventory count. Analysis at the close of business in December shows that BHD1,000 of supplies are still on hand. Additional Information related Robo Technology On 30 November, Robo Technology purchased supplies on credit worth BHD230. The accountant recorded the transaction as follows: Task One: (LOS 1,2,3 & 5) (84 Marks) Required: Assuming the role of Robo Technology accountants, refer to the preceding business documents and the additional information to: A. Follow the necessary steps of the accounting cycle that include the process of recording transactions up to adjusting accounts (50 marks) B. Prepare the following end of 31 December 2021 financial statements (16 marks) Statement of Profit or Loss Statement of Changes in Owner's Equity Statement of Financial Position Notes for A. & B.: Round all your workings to the nearest BHD. C. Prepare a memorandum to the owner of Robo Technology on the company's profitability and efficiency by computing and commenting on two ratios for each group (400 words +/-10%). (10 marks) Marking scheme Calculation of appropriate ratios 4 marks Basic interpretation of ratios 4 marks Communication skills 2 marks Total 10 marks D. Discuss whether the financial statements of Robo Technology are presented fairly, in a manner that fulfills the "faithful representation' qualitative catechistic of financial information. Your discussion should include illustrative accounting examples and references, where appropriate. Word count: (600 words +/-10%). (8 Marks) Marking scheme Defining and explaining the context of faithful 2 marks representation as a qualitative characteristic of financial information Providing four relevant and illustrative accounting 4 marks examples from the case to support your argument Communication skills and referencing 2 marks Total 8 marks Additional Information related Robo Technology On 30 November, Robo Technology purchased supplies on credit worth BHD230. The accountant recorded the transaction as follows: Debit Credit Supplies BHD230 Trade Receivables BHD230 The prepaid insurance of BHD12,600 relates to an insurance premium paid on 30 November to cover 12 months, effective from 1 December 2021. On 1 December, Robo Technology purchased additional equipment on account to use in business operations with a purchase price of BHD4,800, transportation cost of BHD10, insurance while in transit costing BHD30 and discount of BHD250. On 2 December, the owner of Robo Technology invested additional cash BHD80,000. On 3 December, the customer returned one Huawei Nova 71 128GB Midnight Black 4G Dual Sim Smartphone 1 December Receipt no 152. On 24 December, the owner of Robo Technology withdrew BHD1,200 from the business bank account On 24 December, Robo Technology invested in ordinary shares BHD36,000 with the intent of selling the investment in the very near future for a quick profit. . On 31 December, Robo Technology signed a mortgage loan agreement to purchase a Land with Bank of Bahrain and Kuwait (BHD25,000 as a down payment and a 25-year mortgage for BHD60,000). Robo Technology has the policy to pay current month salaries on the second day of the next month. The total salaries for the month of November and December 2021 amounts to BHD45,250 per month On 31 December, Robo Technology returned Google Pixel Slate 12.3-Inch 2 in 1 Tablet Intel Core 15, 8GB RAM, 128GB, Midnight Blue BHD690 (cost BHD657 and VAT 33) to Google Robo Technology estimated the allowance for receivables at 2% of trade receivables. Robo Technology determines the amount of inventory at the end of each accounting period, following a physical inventory count. Analysis at the close of business in December shows that BHD1,000 of supplies are still on hand. Additional Information related Robo Technology On 30 November, Robo Technology purchased supplies on credit worth BHD230. The accountant recorded the transaction as follows