SEAT NUMBER: ……….… ROOM:..……………….
FAMILY NAME:………….....………………………….
This question paper must be returned. Candidates are
not permitted to remove any part of it from the
examination room. OTHER NAMES:……..…….…………………..……..
STUDENT NUMBER:…..…….………..…………….. SAMPLE EXAMINATION SESSION 1, JUNE 2017 STUDENT PAPER Unit Code: ACCG611 Unit Name: Principles of Accounting Duration of Exam
(including reading time if applicable): 2 hours (plus 10 minutes reading time) Total No. of Questions: 6 Total No. of Pages
(including this cover sheet): 19 GENERAL INSTRUCTIONS TO STUDENTS:
• Students are required to follow directions given by the Final Examination Supervisor and must refrain from communicating in any way with another student once
they have entered the final examination venue.
• Students may not write or mark the exam materials in any way during reading time.
• Students may only access authorised materials during this examination. A list of authorised materials is available on this cover sheet.
• All watches must be removed and placed at the top of the exam desk and must remain there for the duration of the exam. All alarms, notifications and alerts must be
switched off.
• Students are not permitted to leave the exam room during the first hour (excluding reading time) and during the last 15 minutes of the examination. • If it is alleged you have breached these rules at any time during the examination, the matter may be reported to a University Discipline Committee for determination.
EXAMINATION INSTRUCTIONS:
(i)
All questions are compulsory and must be attempted.
(ii)
Answer all questions directly in the spaces provided within this examination paper.
(iii)
Answers are to be written in pen and must be legible.
(iv)
The total marks for this paper are 100 which represents 55% of the overall assessment mark for the
unit. Marks for each question are indicated.
Question Topic Marks 1 Accounting cycle /21 2 Bank reconciliation /14 3 Ratio analysis /16 4 Inventory /18 5 Cash budgeting /19 6 Cost volume profit analysis /12 Total /100 AIDS AND MATERIALS PERMITTED/NOT PERMITTED:
Dictionaries:
Calculators:
Other: No dictionaries permitted.
Non-programmable calculators are permitted.
This is a closed book examination hence no notes or textbooks are permitted. Disclaimer
The objective of the sample examination and the revision materials therein is to assist students in their preparation for the final examination. The sample examination
is therefore relatively similar in format to the final examination. However, the number/nature of questions and weighting of marks in the final examination may
be different. Thus students should revise all seminar materials, and importantly review (i) the learning outcomes that are stated in the unit guide, (ii) the final exam
announcement for ACCG 611 which is available on the unit ilearn site, (iii) the relevant questions in the final exam papers for prior sessions (using the link provided
on the unit ilearn site) and (iv) all required readings, lecture notes, lecture examples, homework solutions, group activity solutions and class test solutions. Question 1 [21 marks] Background: Mary Riley is a lawyer and runs and owns her legal practice named ‘Mary’s
Legal Services (sole trader). Mary has prepared an Unadjusted Trial Balance for the month
ended 31 August 2016. The Unadjusted Trial Balance is presented below. (a) Mary’s Legal Services
Unadjusted Trial Balance
as at 31 August 2016
Account Debit Credit Cash ( at bank)
Accounts receivable (control)
Supplies
Building
Accumulated depreciation_building
Accounts payable
Unearned service revenue
Wages payable
M. Riley, Capital, 01/08/2016
M. Riley Drawings
Service revenue
Wages expense
Depreciation expense_ building 22,875
65,370
1,400
115,000 Totals 205,945 12,360
3,690
0
1,755
77,850
1,300
110,290
0
0
205,945 When Mary reviewed the account balances she found the following issues which required
consideration:
(i)
(ii)
(iii)
(iv) Service revenue for the month includes $1,500 which will be earned in September 2016. (v) Services of $5,600 had been provided to Guy Brooks, a customer, but Guy has not been
invoiced or paid his account. Wages owed to employees of $1,250 were unpaid and unrecorded on 31 August.
Depreciation expense for the building for the month is $2,300 and has not been recorded.
Supplies on hand at 31 August 2016 total $690. Required:
(1)
(2) Prepare the adjusting journal entries (AJEs) in the general journal template which is provided on
the following page. Narrations are required.
(9 marks)
Open a t-account for the Service revenue account. Post the relevant AJEs from part (1) and
balance the account. The template for the ledger account is provided on page 4 of the paper.
(4 marks) 2 Part 1: Preparing the AJEs Date Accounts and Particulars Post
Ref Debit Credit 3 Date Accounts and Particulars Post
Ref Debit Credit Part 2: Posting to and balancing the Service Revenue account.
Service revenue
Debit Credit 4 (b) Explain why businesses that sell products or provide services to customers on credit are
advised to use the ‘Allowance for Doubtful Debts Account’ method.
(4 marks) (c) List two types of important users of general purpose financial statements and describe
why each user would find the financial statements beneficial for decision making.
(4 marks) 5 Question 2 [14 marks] Background: Brad Reading runs and owns his own bakery named ‘Brad’s Cakes’ (BC’s)
(sole trader). As the accountant for RB’s, you are required to perform a bank reconciliation
at the end of November 2016. (a) Brad has provided the following information relating to the cash position of the business as
at 30 November:
(i) Cash at Bank ledger account balance is $5,123 Dr. (ii) The Bank statement balance is $6,940 Cr. (iii) Cash receipts amounting to $630 have not been recorded as a deposit by the bank. (iv) Cheque #370 for $1,832 and Cheque #412 for $920 have not been presented to the
bank. (v) Cheque #409 (to pay supplies expense) was correctly processed by the bank as $220
but was incorrectly recorded as $265 in the Cash at Bank ledger account. (vi) A $335 cheque was returned marked ‘dishonoured’. The cheque had been received
from Z. Wong, a new customer. No adjustment has yet been made to the Cash at Bank
ledger account. (vii) The bank statement shows that banks fees for the current month are $15. An
adjustment to the Cash at Bank ledger account has not yet been made. Required:
(1) Prepare the Cash at Bank ledger account showing the final balance as at 30 November 2016. (5 marks) (2) Prepare a bank reconciliation statement for BC’s as at 30 November 2016 based on the information
provided above.
(5 marks). 6 Required:
(1) Complete the cash at bank ledger below for 30 November 2016.
Cash (at Bank)
Debit (2) Credit Prepare a bank reconciliation statement for BC’s as at 30 November 2016. Brad’s Cakes
Bank Reconciliation Statement
as at 30 November 2016 7 (b) Briefly explain the purpose of a bank reconciliation statement (4 marks) 8 Question 3 [16 marks] Jane owns and runs her own marketing consulting business (sole trader) named ‘Jane’s Consulting
Services’ (JC). Her main competitor is ‘Mark’s Advisory Services’ (MA).
She is interested in the performance of her store in comparison with ‘Mark’s Advisory Services’ for
the financial year ended 30 June 2015. She obtains the financial statements for both businesses and
performs a ratio analysis. Selected ratios are summarised below:
Jane’s Consulting Services
(JC) Mark’s Advisory Services
(MA) 32% 15% Debtor’s turnover ratio 13 times 9 times Interest coverage ratio 5 times 7 times 1.3: 1 1.8: 1 Ratio Name
Profit margin ratio Quick ratio
Required:
Using the table provided over the page, identify:
(i) The ratio formula (2 marks) (ii) The category the ratio falls under (2 marks) (iii) What the ratio indicates (6 marks) (iv) Comment on which business has a better result and why (6 marks) 9 Ratio Analysis
Ratio (i) Ratio Formula (ii) Category (iii) What the ratio indicates (iv) Comment Profit
margin ratio Debtors
turnover
ratio Interest
coverage
ratio Quick ratio 10 Question 4
(a) [18 marks] The Brian’s Furniture Store in central Brisbane buys and re-sells home and office furniture
from a number of private suppliers around the country. Brian’s Furniture Store recorded
the following account balances for the year ending 30 September 2016.
Accounts
Sales returns and allowances
Freight In
Ending inventory
Discount received
Discount allowed
Beginning inventory
Purchase returns & allowances
Sales revenue
Freight outwards
Purchases $
3,690
210
6,095
356
410
8,900
4,320
182,000
85
21,670 Required:
Assuming that the periodic inventory system is used, prepare the partial income statement, i.e., up to
gross profit, for the period ending 30 September 2016. The template is provided below. (8 marks)
Brian’s Furniture Store
Partial Income Statement
for the year ended 30 September 2016 11 (b) Background: James Granger owns and runs his own electronic store (sole trader) named
‘James’s Electronic Store’. The business uses the periodic inventory system. During the last
two weeks of April 2016, the following transactions occurred:
April 16 Sold 15 DVDs for $34 each to Jack’s DVD Store.
The credit terms were 3/15, n, 30.
19 Two DVDs were returned by Jack’s DVD Store
because they were damaged. 21 Received payment from Jack’s DVD Store for the
sale made on 16 April. Required:
Record the above transactions in the general journal template provided below. Narrations are not
required. Round up answers to the nearest cent.
(7 marks)
General Journal Entries
Month Accounts and Description Debit Credit 12 (c) Briefly explain the key disadvantage of using the periodic inventory management system.
(3 marks) 13 Question 5
(a) [19 marks] Garry’s Bakery has provided the following estimates relating to the third quarter of 2016.
Cash sales
Credit sales
Receipts from accounts receivable
Cash payments:
Wages
Utilities expenses
Administrative expenses
Depreciation on manufacturing
equipment
Payment of loan
Receipt of rent from building owned by
the business
Credit purchases
Payments to accounts payable $453,387
390,448
315,426
13,290
5,587
3,289
2,554
26,400
3,800
115,456
86,328 The cash balance at 1 July 2016 was $37,895.
Required:
Prepare a cash budget for the quarter ending 30 September 2016. (15 marks)
Garry’s Bakery
Cash budget
for the third quarter ending 30 September 2016 14 (b) Explain the relationship between strategic planning and a cash budget. Use an example to
explain your answer
(4 marks) 15 Question 6
(a) [12 marks] Superior Coffee Supplies Pty Ltd manufactures coffee beans. The following information is
available:
Selling price per unit $29 Variable manufacturing costs per unit $13 Fixed manufacturing costs
Variable administration and selling costs per unit
Fixed admin and selling costs
Annual volume $40,300
$5
$15,000
80,000 units Required:
(i) Calculate the total contribution margin in sales dollars. Show all your workings. (3 marks) (ii) Calculate the number of units that need to be sold annually to break even. Round up your
answer to the nearest unit. All workings must be shown.
(3 marks) 16 (iii) (b) If 95,000 units were sold, what would be the annual profit? (4 marks) Briefly explain the concept of the ‘contribution margin’. (2 marks) END OF EXAMINATION 17 WORKING PAPER: THIS PAGE WILL NOT BE MARKED 18 WORKING PAPER: THIS PAGE WILL NOT BE MARKED 19

 

• 1497930729-SAMPLExam.pdf

SuperTutor

(15)

Status NEW Posted 20 Jun 2017 03:06 AM My Price 20.00

-----------

Attachments

file 1497930728-Solutions file.docx preview (56 words )

S-----------olu-----------tio-----------ns -----------fil-----------e -----------Hel-----------lo -----------Sir-----------/Ma-----------dam----------- T-----------han-----------k y-----------ou -----------for----------- yo-----------ur -----------int-----------ere-----------st -----------and----------- bu-----------yin-----------g m-----------y p-----------ost-----------ed -----------sol-----------uti-----------on.----------- Pl-----------eas-----------e p-----------ing----------- me----------- on----------- ch-----------at -----------I a-----------m o-----------nli-----------ne -----------or -----------inb-----------ox -----------me -----------a m-----------ess-----------age----------- I -----------wil-----------l b-----------e q-----------uic-----------kly----------- on-----------lin-----------e a-----------nd -----------giv-----------e y-----------ou -----------exa-----------ct -----------fil-----------e a-----------nd -----------the----------- sa-----------me -----------fil-----------e i-----------s a-----------lso----------- se-----------nt -----------to -----------you-----------r e-----------mai-----------l t-----------hat----------- is----------- re-----------gis-----------ter-----------ed -----------onÂ----------- th-----------is -----------web-----------sit-----------e. ----------- H-----------YPE-----------RLI-----------NK -----------&qu-----------ot;-----------htt-----------p:/-----------/wo-----------rkb-----------ank-----------247-----------.co-----------m/&-----------quo-----------t; -----------\t -----------&qu-----------ot;-----------_bl-----------ank-----------&qu-----------ot;----------- -----------Tha-----------nk -----------you----------- -----------

Not Rated(0)

• Buy Answer