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LFS00AC1 Foundation Studies Test 4

Course:	Foundation Studies
Subject Code:	LFS00AC1
Subject Name:	Accounting 1
Assessment:	Test 4 - Trimester 2_2020
Percentage:	20% of final mark
Due:	3pm AEST Wednesday 9^th September 2020 Week 11
Name:
ID Number:
General information and requirements:	· This is an individual assessment and must be completed by you. · You must complete the test on this Word document and submit it as a Word document in the link on Moodle. The link is just below where you downloaded this test paper. · In submitting this test electronically, you are agreeing to the policy relating to academic integrity at LTCA. · All students have access to download Microsoft Office for free. This information was provided during the orientation. · You have 4 hours in which to complete and submit the test. Do not wait until the last minute to submit your test paper. · Please enter your name and ID number in the space provided above.

Question	Possible marks
1	30
2	28
3	17
Total	75

Question 1 (30 marks)

Simply Scrumptious sells speciality boxes of chocolates. The chocolates sell for $44 (incl. GST). They have provided you with the following information:

At 1 July 2020 stock records for the chocolate baskets revealed:

Chocolate baskets

Quantity

Cost $

The following transactions occurred during the month:

Date July	Transaction	Document
2	Sold 8 baskets for $44 each (incl. GST)	Rec 222
5	Purchased 15 baskets for $22 each plus GST $2.20	Inv 65
12	Sold 10 baskets for $44 each (incl. GST)	Rec 223
18	Sold 8 baskets	Rec 224
25	Purchased 20 baskets for $21 each plus GST $2.10	Inv 82
28	Returned 5 faulty baskets to supplier	Credit note 5

A stocktake was completed at 31 July which showed 21 baskets on hand.

Required

Complete the stockcard for July
What will the stock adjustment be at 31 July in the Income Statement?
What will the value of inventory be in the Balance Sheet as at 31 July?

Question 2 (28 marks)

Sally’s Boutique has provided you with the following extract of their accounting information at 30 June 2020:

	$
Cash at Bank	12,000
Accounts Receivable	3,900
Inventory	8,900
Equipment	18,000
Accumulated Depreciation— Equipment	400
Accounts Payable	3,000
Loan - CBA (due 2025)	8,000
Capital	86,000
Drawings	155,000
Cash sales	139,200
Credit sales	162,800
Sales returns	13,000
Wages Expense	52,600
Electricity Expense	5,100
Rent Expense	21,100
Cartage inwards	400
Depreciation Expense	200
Cost of sales	50,500
Cartage outwards	700
Buying expenses	550

Additional information – the stocktake at 30 June revealed $9,800 worth of stock.

Required

Complete the Income Statement for Sally’s Boutique for the year ended 30 June 2020
Complete the Owner’s Equity extract of the Balance Sheet as at 30 June 2020

Note - You must include headings and all relevant sub-total and totals in your reports.

Question 3 (17 marks)

Eddy’s Electrical Repairs purchased new equipment at a cost of $75,000 for the business on 1 May 2019. He expects that it will have a life of 5 years at which time he will be able to sell it for $15,000.

Required