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Assignment Cover Sheet

An Assignment Cover Sheet must be included with each assignment submitted.

Name: Xuzhuo Zhang

Student ID: 110181703

Email: zhaxy122@mymail.unisa.edu.au

Course code and title: ACCT 1008 Accounting for Business

School: UniSA Program Code: ACCT 1008

Course Coordinator: Mr. Phil Johnson Tutor: Mr. Mark Prider

Day, Time, Location of Tutorial/Practical:

Assignment number: Assignment Part B Due date: 23/10/2018

Assignment topic as stated in Course Outline:

Assignment Part B

Student Declaration

I declare the work contained in this assignment is my own, except where acknowledgement of sources is made.
I authorise the University to test any work submitted by me, using text comparison software, for instances of plagiarism. I
understand that this will involve the University or its contractor copying my work and storing it on a database to be used in
future to test work submitted by others.

I understand that I can obtain further information on this matter at http://w3.unisa.edu.au/ltu/integrity/default.asp

Note: The attachment of this statement on any electronically submitted assignments will be deemed to
have the same authority as a signed statement.

Student Signature: Xuzhuo Zhang Date:22/10/2018

OFFICE USE ONLY

Date received: Received by:

Academic staff member: MF Assessment/grade:43.5/80 Commented [PJ1]: AI review outcome

Revised mark = 21/80
General Journal

Date Details Debit ($) Credit ($)

30th July 2018 Office Salary Expense 447

Accrued Wages 447 Commented [B2]: Use Office Salaries Payable

Commented [B3]: 
(Salary is not recorded) 2 marks

Depreciation Expense - Furniture & Fittings 3,315

Accumulated Depreciation Furniture 3,315 Commented [B4]: 

2 marks
& Fittings

(Furniture and fitting’s depreciation)

Depreciation Expense - Delivery Van 4,850

Accumulated Depreciation - Delivery 4,850 Commented [B5]: 

2 marks
Van

(Delivery van’s depreciation)

Cash 20,000

Overdraft 20,000 Commented [B6]: There is no adjustment required for note 3.

The overdraft was only an approval, so no money has been
received yet.
(Bank overdraft) (-2 marks)

Stationary Expense 447

Stationary on hand 447 Commented [B7]: 

2 marks

(Consumed $447 stationary) Please use the wording Office Supplies instead of Stationary.

Insurance Expense 819

Prepaid Insurance 819 Commented [B8]: 

2 marks

(Insurance expense)

Unowned Revenue 2,700

Sales Revenue 2,700 Commented [B9]: Entry is the other way around as Sales
must decrease because it cannot yet be recorded.
Sales Revenue 2 700
(Chillies sold) Unearned Sales Revenue 2 700
(to record sales not yet earned)

Bad Debts Expense 8,500

 Allowance for Doubtful Accounts
(Dead debit: 4% of A/C receivable)
Electricity Bill
8,500 Commented [B10]: Amount is incorrect and should not use
bad debts.
The account is doubtful, but not yet bad. If bad then it is written
off as Bad Debts and Accounts Receivable would reduce. The
correct entry is:
Doubtful Debts Expense 850
Allowance for Doubtful Debts 850
450 (to record AR that are unlikely to be received) 21250 x 4%

Accrued Bill 450 Commented [B11]: The word bill is not descriptive enough.
Use Electricity Payable.
(Electricity expense) Electricity Expense 450
Electricity Payable 450
(to record electricity payable)
1 mark

Commented [B12]: All narrations complete and correct = 2

marks

Commented [B13]: Good overall. See comments above.

Total 11 marks
Commented [PJ14R13]: AI review outcome
Zero marks awarded
 RAOUL’s FINE CHINA

Statement of Changes in Equity

For the year ended 1 July 2017 Commented [B15]: Raoul’s Fine China
Income Statement
For the year ended 30 June 2018
Income (-1 mark)
Sales 383117 Commented [B16]: Missing account:
Discount Received 2170 385287 Sales 383,117
less Sales Returns & Allowances 6,041
Expense Discount Allowed 2,590
Electricity 1120 (-1 mark)
374,486

COS 270347
Commented [B17]: Discount Received is a deduction from
Depreciation Expense - Shop Furniture & Fittings 2485 Cost of Sales in the Cost of Sales section.
Freight Inwards 1974 (-0.5 marks)
less Cost of Sales
Rent Expense 20510 Cost of Sales 270,347
add Freight Inwards 1,974
Discount Allowed 2590 less Discount Received 2,170
Salaries Expense - Store 23380 270,151
Advertising Expense 392 Commented [B18]: Expenses must be classified into 3
categories:
Interest Expense 329 -Selling & Distribution
Doubtful Debts Expense 700 -Administration
- Financial
Salaries Expense -Admin 9310 333137 (-5 marks)
Profit 52150 Commented [B19]: Needed to split electricity into the correct
classification:
Shop Electricity Expense 840 (Selling & Distribution Expense)
Office Electricity Expense 280 (Administrative Expense)
(-1 mark)
Commented [B20]: Must be part of the Cost of Sales section
(see above)
(-0.5 marks)
RAOUL’s FINE CHINA Commented [B21]: Must be part of the Cost of Sales section
(see above)
(-0.5 marks)
Statement of Changes in Equity
Commented [B22]: Needed to split rent into the correct
classification:
For the year ended 1 July 2017 Shop Rent Expense 15 010 (Selling & Distribution Expense)
Office Rent Expense 5 500 (Administrative Expense)
(-1 mark)
R. Dalton, Capital – 1 July, last year $31,367
Commented [B23]: Must be deducted from Sales in the
Income section.
Add: Profit for year ended 30 June $52,150 (-0.5 marks)
Commented [B24]: Raoul’s Fine China
Statement of Changes in Equity
For the year ended 30 June 2018
(-0.5 marks)
Less: Drawings ($12,950)

R. Dalton, Capital – 30 June $70,567 Commented [B25]: A good attempt, but there were a few
issues with the Income Statement. Please make sure that you
know what sections are required and how to classify expenses.
Total 11.5 marks
Commented [PJ26R25]: AI review outcome
Zero marks awarded
Janelle Ledger
JLL Accounting Pty LTD, 44 The Parade,
Norwood, SA 5067
October 31, 2018

Dear Ms. Ledger/Janelle, Commented [B27]: Must choose either Ms Ledger or Janelle.
Do not write both.
(-0.5 marks)
I am writing this letter is to explain the confusion of three questions. Here are my explanations.
Commented [B28]: Headings should not just be numbers. A
1. What is asset: description of each section was required.
A resource controlled by the entity as a result of past events and from which future economic benefits
are expected to flow to the entity. A present economic resource controlled by the entity as a result of Commented [B29]: Correct, but where is your reference?
past events.

a. Asset requires an ownership.

b. Business will get future benefits by asset.

The road may bring future benefits to Harry, but the ownership of road is not belonging to Harry, so Harry Commented [B30]: The asset definition refers to control. The
need to remove the value of road from his balance sheet. road is not controlled by harry.
(-0.5 marks)
It also fails to satisfy the measurability recognition criterion - how
could the value of the road to the market garden be reliably and
2. Consistency assumption objectively measured?
(-0.5 marks)
Ron need to separate the accounting to personal accounting and business accounting.
Commented [B31]: Should use a full stop instead of a
If Ron use the cash in business account to purchase a computer, it should be recorded as drawing. comma. Otherwise it is a long sentence.
Commented [B32]: 
Commented [B33]: 
3. According to Hermione’s case, under the principles of principle of sincerity, the firm should keep Must state that the Accounting entity concept was violated.
(-0.5 marks)
relevant resource in honest, so Hermione should keep relevant resource of his bakery in check.
Commented [B34]: 
Commented [B35]: The principle is not called sincerity.
Your sentence does not make sense.

Hope my explanation will help you eliminate your confusion and please let me know if you have The accrual basis assumption is violated.
(-0.5 marks)
furthermore questions. Should charge depreciation expense each year that the asset is
used regardless of profit. The fact that the expense (decrease in
equity, apart from drawings, represents the consumption of
economic benefit in the form of reduction in an asset) is not a
“cash” expense doesn't change the fact that there has been a
Faithfully, reduction in economic benefit through the use of the asset.
(-1 mark)
Xuzhuo Zhang Commented [B36]: Should record depreciation expense and
accumulated depreciation.
(-1.5 marks)
Commented [B37]: A good attempt, but there was not
enough detail in your answers. See comments above and make
sure that you can identify, define and explain the accounting
concepts/assumptions and the accounting elements.
Total 7 marks
 Q4(a)

PIPE DREAM PLUMBING PTY LTD

CASH FLOW STATEMENT
FOR THE YEAR ENDING 30 JUNE 2018

$ $
Cash Flows from Operating Activities
Receipts from customers 990 500

Payments to suppliers & employees (815 000)

Cash generated by operations 175 500

Interest received 3 000 Commented [B38]: 

Interest paid (6 000) Commented [B39]: 

Income tax paid (54 250) 118 250 Commented [B40]: 

Cash Flows from Investing Activities

Proceeds from sale of land 80 000
Payment for Plant & Equipment (65 000) 15 000 Commented [B41]: 

Cash Flows from Financing Activities

Proceeds from loan 15 000
Proceeds from share issue 10 000
Dividends 93 750 118 750 Commented [B42]: This should be (93 750) as it is a
deduction.
(-0.5 marks)

Net increase / decrease in cash held 42 000

Cash at the beginning of the year 29 000
Cash at the end of the year 71 000 Commented [B43]: You should be able to look at the
Balance Sheets and complete the Cash at Start and Cash at End
amounts. The increase/decrease in cash held is the difference
between the two (as well as the sum of all cash flow activities).
Net Increase (decrease) in cash held 32 000
Cash at Start 29 000
Cash at End 61 000
Receipts from customers = net sales (995,000) - A/C R increase (29,000 – 24,500) = 990,500 (-1 mark)
Commented [B44]: Receipts from Customers
Payments to suppliers = Ending inventory (155,000) – Opening inventory (165,000) + Cost of sale Net Sales + Op. A/C Rec – Cl. A/C Rec – D/Debts
995 000 + 24 500 - 29 000 - 4 500 = 986 000
(650,000) – Account Payable (32,000) = 608,000 (-2 marks)

Payments to employees = Selling and Admin Expenses (217,500) – Expenses Payable (10,500) =
207,000
Commented [B45]: Paid to Suppliers
Payments to suppliers & employees = Payments to suppliers (608,000) + Payments to employees COS – Op Inv + Cl Inv + Op A/C Pay – Cl A/C Pay – Disc Rec
650 000 - 165 000 + 155 000 + 37 500 – 32 000 – 2 500 = 643 000
(207,000) = 834 500 (-3 marks)

Income tax paid = Income tax expense (47,250) - tax payable (21,000 – 28,000) = 54,250 Paid for Employees
(Selling & Admin Exp – Dep’n) - Op PP Exp + Cl PP Exp + Op Acc
Exp – Cl Acc Exp
Dividends = Profit (105,250) – change in retained earnings (246,500 – 235,000) = 93,750 (217 500 – 23 500) – 16 500 + 17 500 + 15 500 – 10 500 = 200 000
(-3 marks)

643 000 + 200 000 = 843 000

 ALL WORKINGS MUST BE PROVIDED, OR THE CASH FLOW STATEMENT WILL RECEIVE NO MARKS
(Insert any additional pages as required)

Q4(b)
According to accrual accounting, credit sales are allowed. In this case, some revenue and credit
sales have not yet been collected. Commented [B46]: 

Also needed to provide another example. For instance:

Inclusion of non-cash items in computation of profit such as
depreciation. This is excluded in the cash flow statement.
(-1.5 marks)
Commented [B47]: Unfortunately there were some errors in
your calculations. See comments above.
Total 7 marks
 Commented [B48]: Written Communication Skills (WCS)
9 marks in total will be awarded for the following aspects of
students’ written communication skills development:

PARAPHRASING
Presenting ideas and information that student read in their own
words,
Not simply taking what someone else has written and changing
a few words. It is about translating another person’s ideas into
the student’s own words.
Mark (maximum 3) = 3

BEING RELEVANT
Does what is written contribute to answering the question(s)
Setting out to specifically answer the question(s) by using relevant
information,
Staying ‘on track’ with answers,
Avoiding straying from the question and going off on irrelevant
tangents.
Mark (maximum 3) = 3

WRITING FOR A PROFESSIONAL BUSINESS AUDIENCE (including

good presentation)
The written work is clear and understandable,
Where applicable, the written work is based on the facts and
available evidence,
Exaggeration and bold statements which are not supported by
the facts and evidence are avoided.
Good presentation
The written work contains no spelling and grammatical errors.
Obvious evidence of editing displayed. (Where the work contains
any spelling and grammatical errors, it cannot be awarded full
marks),
Any headings and sub-headings display properly, and are used
consistently throughout the document,
Page numbering is used. It is usual for page numbering to
commence on page 2 of a business document as “2” (template
provided- N/A)
Font size and font style are used consistently throughout the
document,
If applicable, requested templates are used.
Mark (maximum 3) = 1 (headings for the letter needed to be
more than just numbers. There were also some grammatical
errors in the letter)

TOTAL WRITTEN COMMUNICATION SKILLS MARK (maximum 9) =

7
Reference List
Please list any references used to complete this assignment.
Harvard referencing principles must be followed.
Please see this link for more information: Harvard Referencing Guide - UniSA
(current as at January 2017)