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ACC/ACF 1100

Introduction to Financial Accounting

Assignment – Part One

In this assessment, you must NOT use generative artificial intelligence (AI) to generate any materials or content in relation to the assessment task.

Due Date: Wednesday 17th April 2024 at 4:30pm (week 7)

Value: 10%

Purpose: To demonstrate your understanding of the effect of transactions and events on the financial statements

Submission: uploaded via Moodle

Components: A practical (recording keeping) component, and a written response. You must use the word templates provided on Moodle.

Requirements: Please read the detailed requirements on page 3 of this document. There are 3 separate tasks involved.

Background and details:

Jasmine is in her first year at university undertaking an education degree. She needed to earn income to support her living expenses so recently decided to commence a sole proprietorship business as a global politics tutor. She chose global politics because she performed well in VCE global politics and   remembers helping her classmates when they had trouble with certain topics.

Jasmine does not have her driver’s licence yet, so was limited in how far she could offer to travel to tutor her students. She planned to initially focus on her former high school which is in her local suburb. Jasmine had no prior experience studying accounting, but had done some internet searches and was fairly confident she could do the record keeping herself.

Details related to the commencement of ‘Jasmine’s Tutoring Service’ business on 1 April 2024 are:

Task 1 – Jasmine met you at university and learned that you are studying accounting. She asked you to prepare her financial records for April so that she could evaluate the accuracy of her own record-keeping. Record all of the data you have been given for the month of April for Jasmine’s Tutoring in the ledger account templates provided. Pay particular attention to how she treated each item. You must then prepare the four financial statements based on this data in the financial statement templates provided. You will need to name the ledger accounts, add titles to the reports and you may choose to remove excess rows to improve presentation and readability where possible.

Task 2 – Based on the background information provided in relation to Jasmine’s business, you realise that several items require adjustment at the end of April that Jasmine had not considered. These include:

-      Stationery (she estimates $50 worth remains unused)

-    Advertising

-    Travel (the MYKI card balance is $75)

-    The car loan attracts 12% interest per annum

-      The estimated life of the mobile phone and laptop are 30 months with no scrap value. Jasmine expects to use them evenly throughout that time so a straight-line depreciation method would be appropriate.

-      Nine of the ten tutoring sessions that were paid in advance have not been performed.

-      The recorded value of the textbooks does not require adjustment.

-      The motor vehicle has not been driven yet.

Make the adjustments in the ledger accounts you prepared in Task 1 using a different colour so they can be easily seen, AND prepare another set of the four financial statements based on the updated data. In total, you will therefore submit one set of ledgers that incorporate April data and adjustments, along with two sets of financial statements (one set that incorporates April transactions, and the second set that also incorporates the end-of-month adjustments).

Task 3 – Jasmine has asked you for your opinion on several things associated with her small business, including:

.     Should she be happy with the business after its first month of operation?

.     Should she have recorded GST?

.     Whether her record-keeping was satisfactory?

.     Any strategic advice for her going forward?

As her new friend at university that understands accounting, write an informal report to Jasmine that addresses her queries. The report should be friendly, informative and be written in a way that she will understand (given her limited accounting knowledge). Maximum 300 words (+/- 10%). Use the space at the end of the financial statement templates so that your entire Assignment Part One submission is within one document. No referencing is required. Artificial Intelligence must NOT be used.

Marks for the assignment will be awarded based on the accuracy of financial data in Task 1 and Task 2, along with presentation, layout, clarity of expression and depth of critical thinking in your written response (Task 3).