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ACCTG 211 FINANCIAL ACCOUNTING

Reference: Assignment 2

Note:

(a) The material provided in this assignment is based on the material taught in ACCTG 211. Your solutions must

(a) You must use the Assignment 2 Answer Booklet word document provided on Canvas to submit your answers online.

Do not change the format of the answer booklet when submitting it online. At times, more space has been provided than is necessary to answer a question.

(b) It is your responsibility to ensure this assignment is successfully submitted before 6 pm on Friday, 17 March 2023.

What does ‘successfully submitted’ mean?

It means your completed Assignment 2 Answer Booklet word document (You must submit the correct document for each assignment) was accepted by Speedgrader (Ultimately, there must be an acceptance cut-off policy. Late submissions, as determined by SpeedGrader, cannot be accepted for grading. It may take SpeedGrader a few minutes to process your submission. So? Submit your assignment well before 6 pm.), and the said document is downloadable and readable by the ACCTG 211 markers.   

(c) This assignment counts for 4% of the final grade for the course.

(d) If you have questions about the topics covered in this assignment, use Piazza to discuss with other students and teaching staff.

QUESTION 1        BIKE REPAIRS LTD

Bike Repairs Ltd repairs mountain bikes. Over the last eighteen months the directors have become increasingly concerned about the entity’s cash flow situation.

Other information:

· There were no purchases of bike parts during the current financial year. During the previous financial year the entity had taken advantage of extremely low prices at a liquidation sale of bike parts.  

· Any interest or dividends paid are to be classified as cash flows from operating activities.

· On 30 April 2022, there was $30 repayment on the long-term loan.

· Equipment costing $500 was purchased during the year.

Required:

a) Prepare all the general ledger accounts for Bike Repairs Ltd in the Answer booklet.

b) Explain why Bike Repairs Ltd does not have an Accounts payable general ledger account.   

c) Prepare the Statement of Cash Flows for Bike Repairs Ltd in accordance with NZ IAS 7 Statement of Cash Flows, for the year ended 31 March 2023. The indirect method is to be used to report the cash flows from operating activities. 

d) Prepare the Statement of Cash Flows for Bike Repairs Ltd in accordance with NZ IAS 7 Statement of Cash Flows, for the year ended 31 March 2023. The direct method is to be used to report the cash flows from operating activities. The reconciliation note, as per FRS-44 NZ,   is required.

e) The directors of Bike Repair Ltd asked you to briefly analyse their cash flow statement for the year ended 31 March 2023.

f) Name an additional income account you would expected Bikes Repairs Ltd to have had.

g) Assume any interest or dividends paid are to be classified as cash flows from financing  activities. Complete the table in the answer booklet to demonstrate what would change to your answers to  c) and d) above because of a change in classification.

QUESTION 2        

The 2022 Financial Results/Report for Air NZ and Auckland Airport are provided on Canvas/Modules/Assignments 1 to 5. Answer the questions in the answer booklet for both Air NZ and Auckland Airport. All questions only relate to 2022.