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Foundation Studies and Diploma Programs
Course: | Foundation Studies |
Subject Code: | LFS00AC1 |
Subject Name: | Accounting 1 |
Assessment: | Test 1 - Trimester 2_2020 |
Percentage: | 20% of final mark |
Due: | 5.45pm AEST
Monday 20th July 2020 Week 4 |
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 | Marks achieved |
1 | 18 | |
2 | 24 | |
3 | 8 | |
Total | 50 |
Question 1 (18 marks)
James Strong is the owner of Jim Jams Repairs. He has provided the following list of the firm’s assets and liabilities as at 30 June 2020.
$ | |
Accounts payable | 8,000 |
Supplies | 3,000 |
Accounts receivable | 10,000 |
Cash at bank | 7,000 |
Buildings | 140,000 |
Loan – ANZ (due 1 December 2020) | 9,000 |
Tools & Equipment | 8,000 |
Van | 25,000 |
Loan – NAB (due 30 June 2025) | 120,000 |
Capital | ? |
Required:
Prepare a classified Balance Sheet as at 30 June 2020. You must ensure that you include all appropriate headings and totals.
Question 2 (24 marks)
Charlie Loong started Crafty Charlie Services on 1 June 2020. He has provided you with his business transactions for the first week of his business.
Required
Prepare a classified Balance Sheet after each transaction.
1.6.2020 – Charlie Loong deposited $50,000 into the business bank account
2.6.2020 – Purchased computer for $2,000 from Best Computers on credit
3.6.2020 – Borrowed $15,000 from CBA, payable in 3 years
4.6.2020 – Made payment of $1,500 to Best Computers
5.6.2020 – Bought stock of supplies $3,500 for cash
6.6.2020 – Withdrew $5,000 cash from the business
Question 3 (8 marks)
The following totals have been extracted from the Balance Sheet for Winkler Trading at 30 June 2020
$ | |
Current assets | 45,000 |
Non-current assets | 110,000 |
Current liabilities | 30,000 |
Non-current liabilities | 90,000 |
Owner’s equity | 35,000 |
Required
Question 3
Answer:
No, Winkler doesn’t seem to have liquidity problem because its current assets are 1.5 times more than its current liabilities. It has $15,000 more current assets after covering for its current liabilities. Hence, it doesn’t seem to have any liquidity problem. |
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