HI5001-Accounting For Business - Accounting and Finance Assignment Help

Assignment Task

Task

Question 1 :

Urban Consulting, a building consulting firm has just started its business. The owner of the firm engaged you to prepare yearly financial statements for their first year ended 30 June 2020 on both the cash basis and the accrual basis. You have been provided with the following selected data for the year. 

1. During the year, cash payments of $163,240 were made for salaries and other expenses incurred during the period.
2. Salaries owing to employees but not yet paid amount to $6,160.
3. Insurance of $9,240 that will cover the next financial year was prepaid at 30 June.
4. During the year, a total of $192,500 consulting fees was collected for services provided.
5. There were $12,320 in receivables at 30 June 2020 for services performed on credit.
6. On 20 June 2020, a client paid $4,620 in advance for services to be rendered during the next financial year.

Required:

a. Calculate profit under both the cash basis and the accrual basis.

b. Explain in your own words why the profits calculated above are not the same. Which financial statements assumption does this relate to? 

Question 2 :

Chris Ting owns a financial planning advisory business operating under the name Super Wealth. The firm prepares financial statements every month. The unadjusted trial balance of Super Wealth as at 31 May 2021 is shown below (ignore GST).

Required:

a) Prepare necessary adjusting entries at the end of month May (round your calculations to the nearest dollar amount). 

b) What is the balance of “cash at bank” and “prepaid insurance” after the adjusting entries are recorded? 

Question 3 :

You are working for the temporary accounting employment agency known as Accountants. Today you have been asked to work at High Jewellery, a small jewellery store that operates in inner city Sydney and is owned by Alexia Smith. Your task here is to provide advice about the firm’s inventory system. The following information relates to the transactions of one type of sapphire necklace (product no. N1234) for the month of May 2021:

Required:

a) Assuming Periodic Inventory System with FIFO cost flow method is used by High Jewellery. A physical count shows the ending inventory for the sapphire necklace is 66 units at the end of the month of May. Calculate the ending inventory and cost of sales for May 2021. 

b) Assuming Perpetual Inventory System with FIFO cost flow method is used, prepare an inventory card and determine the ending inventory and cost of sales for the month. 

c) Which inventory system would you recommend to the business and why?

This  HI5001 Accounting and Finance Assignment has been solved by our Nursing Expert at My Uni Paper. 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 Turn tin file), expert quality assignment or order an old solution file that was considered worthy of the highest distinction.