HA1020 - The Logic And Assumptions Of Accounting Procedures - Accounting And Finance Assignment Help

Assignment Task

Unit Learning Outcomes Assessed : 

• Understand the logic and assumptions of accounting procedures; 

• Record business transactions in the journals and ledgers that make up a business accounting  system;  

• Prepare financial statements; and 

• Analyse and interpret financial statements.

Question

Employees of Tucker Northern Ltd are paid every Friday for the 5-day working week from Monday to  Friday. The weekly wages expense is $230 000 (i.e., $46 000 each working day). The accounting year end is 31 December, assuming it falls on a Thursday this year.

Required: 

a) Prepare the adjusting entry for the year-end

b) If no adjusting entry is made on 31 December, what will be the impact on net profit? What  will the errors in the balance sheet be?

c) What is the journal entry made on the next pay day Friday 1 January when the staff are paid? 

Question

Your friend Xantha has just started a lawn mowing service and has purchased a group of new  lawnmowers for $20 000. Xantha expects the mowers to last 5 years and to have zero residual value  at that point.  

Xantha’s business plan estimates that the business can cut 5000 lawns over the 5 years, with  estimations of 500 lawns for year 1, 1000 for year 2, 1200 for year 3, 1800 for year 4 and 500 for year  5 over the 5 years.

Required: 

a) Calculate the accumulated depreciation balance at the end of the second year using each of  the following depreciation bases: (6 marks) 

a. Straight-line 

b. Reducing balance (25% rate) 

c. Units-of-production 

b) Based on your calculations, which depreciation basis would produce the highest profits at the  end of the second year? (2 mark) 

c) Your friend Xantha has never heard of the unit-of-production basis. Explain why companies  use it and comment on whether it would make sense for your friend’s business

This (HA1020) Accounting and Finance Assignment has been solved by our Accounting and Finance experts at Online Assignment Bank. Our Assignment Writing Experts are efficient to provide a fresh solution to this question. We are serving more than 10000+ Students in Australia, UK & US by helping them to score HD in their academics. Our Experts are well trained to follow all marking rubrics & referencing style.
Be it a used or new solution, the quality of the work submitted by our assignment experts remains unhampered. You may continue to expect the same or even better quality with the used and new assignment solution files respectively. There’s one thing to be noticed that you could choose one between the two and acquire an HD either way. You could choose a new assignment solution file to get yourself an exclusive, plagiarism (with free Turnitin file), expert quality assignment or order an old solution file that was considered worthy of the highest distinction.