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ACC566: Accounting System And Processing - Spottie Ltd - Mr Spot - Mrs Spot - Business Report Writing Assignment Help
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Subject Code: ACC566
i) Mr and Mrs Spot have heard of the two inventory methods – periodic and perpetual methods, and they have also heard of the terms ‘First-in-first-out’ and ‘Weighted average cost’, but don’t really know anything more about them. Prepare a memo to Mr and Mrs Spot explaining each of these methods/terms.
ii) After Mr and Mrs Spot received your memo above, they both agree that the ‘First-in-firstout’ method suits their business. They are still undecided about which inventory method should be used (either the perpetual or periodic methods), and have asked ACC566 you to prepare journal entries for all of the company’s transactions for January using the two different methods (using the ‘First-in-first-out’ basis), so that they can see how the journal entries differ. Show workings where necessary
Question 2 Retail operations
This question continues on from question 1 above. It is now January 2019, and Mr and Mrs Spot have been very busy growing the business of Spottie Ltd over the last year. The business now stocks 20 inventory lines, and employs three full-time staff. After using a manual accounting system in Excel for Spottie Ltd’s business, Mr and Mrs Spot have come to you for advice as they consider moving to a computerised accounting system. They believe that they have been spending too much time preparing the accounting records, and a friend recommended that they make the move to ‘Xero’ – an online accounting system. Undertake some research into cloud-based accounting systems, and the ‘Xero’ cloud-based accounting system.
Question 3 Internal controls – cash
This question continues on from question 1 and question 2 above. It is now January 2020, and Mr and Mrs Spot have been very successful in growing the business of Spottie Ltd over the last 2 years. The business now stocks over 200 inventory lines, and employs six full-time staff. As the business continues to grow, you strongly encourage Mr and Mrs Spot to review internal controls ACC566 over cash receipts and cash payments in the business, to safeguard the business’s money. Mr and Mrs Spot are not overly concerned, as they have never had any issues with cash going missing or being stolen in the past.
Question 4 Bank reconciliations and cash
The August 2018 bank statement appeared as follows: Party Supplies Ltd's accounting records for August 2018 showed the following: The current balance in the ‘bank’ ledger account (after the above receipts and payments have been entered) is: $17,245.00 + $18,874 deposits - $16,754.50 withdrawals = $19,364.50. The company’s bookkeeper has come to you for help, as she is having trouble reconciling the bank account at 31 August 2018. The bank did not make any errors.
Question 5 Property, plant and equipment
Storm Ltd acquired an item of equipment on 1 July 2016 at a cost of $800,000. On 30 June 2017, Storm’s directors decide to continue using the cost model for equipment. They elect to depreciate the equipment acquired on 1 July 2016 using the straight-line method, over its useful life of five years. The estimated residual value is $40,000. The remaining ACC566 useful life is revised on 1 July 2018 – estimated to be six years from 1 July 2018. The estimated residual value is also revised on this date – to $50,000. The item of equipment is sold on 31 December 2019 for $500,000
Business Report Writing Assignment Help
Assignment Task: ACC566 Question 1 Retail operations and retail inventory Spottie Ltd began a business on 1 January 2018. The business will sell ‘Spot the dog’ soft toys via an online store. The business is not registered for GST. The following transactions occurred during January 2018:
i) Mr and Mrs Spot have heard of the two inventory methods – periodic and perpetual methods, and they have also heard of the terms ‘First-in-first-out’ and ‘Weighted average cost’, but don’t really know anything more about them. Prepare a memo to Mr and Mrs Spot explaining each of these methods/terms.
ii) After Mr and Mrs Spot received your memo above, they both agree that the ‘First-in-firstout’ method suits their business. They are still undecided about which inventory method should be used (either the perpetual or periodic methods), and have asked ACC566 you to prepare journal entries for all of the company’s transactions for January using the two different methods (using the ‘First-in-first-out’ basis), so that they can see how the journal entries differ. Show workings where necessary
Question 2 Retail operations
This question continues on from question 1 above. It is now January 2019, and Mr and Mrs Spot have been very busy growing the business of Spottie Ltd over the last year. The business now stocks 20 inventory lines, and employs three full-time staff. After using a manual accounting system in Excel for Spottie Ltd’s business, Mr and Mrs Spot have come to you for advice as they consider moving to a computerised accounting system. They believe that they have been spending too much time preparing the accounting records, and a friend recommended that they make the move to ‘Xero’ – an online accounting system. Undertake some research into cloud-based accounting systems, and the ‘Xero’ cloud-based accounting system.
Question 3 Internal controls – cash
This question continues on from question 1 and question 2 above. It is now January 2020, and Mr and Mrs Spot have been very successful in growing the business of Spottie Ltd over the last 2 years. The business now stocks over 200 inventory lines, and employs six full-time staff. As the business continues to grow, you strongly encourage Mr and Mrs Spot to review internal controls ACC566 over cash receipts and cash payments in the business, to safeguard the business’s money. Mr and Mrs Spot are not overly concerned, as they have never had any issues with cash going missing or being stolen in the past.
Question 4 Bank reconciliations and cash
The August 2018 bank statement appeared as follows: Party Supplies Ltd's accounting records for August 2018 showed the following: The current balance in the ‘bank’ ledger account (after the above receipts and payments have been entered) is: $17,245.00 + $18,874 deposits - $16,754.50 withdrawals = $19,364.50. The company’s bookkeeper has come to you for help, as she is having trouble reconciling the bank account at 31 August 2018. The bank did not make any errors.
Question 5 Property, plant and equipment
Storm Ltd acquired an item of equipment on 1 July 2016 at a cost of $800,000. On 30 June 2017, Storm’s directors decide to continue using the cost model for equipment. They elect to depreciate the equipment acquired on 1 July 2016 using the straight-line method, over its useful life of five years. The estimated residual value is $40,000. The remaining ACC566 useful life is revised on 1 July 2018 – estimated to be six years from 1 July 2018. The estimated residual value is also revised on this date – to $50,000. The item of equipment is sold on 31 December 2019 for $500,000
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