1) Describe the financial reporting environment in Australia.
2) Discuss what accounting is and the accounting process.
3) Discuss the Conceptual Framework and the objective of financial reporting.
4) Discuss the main elements of each of the four main financial statements.
5) Discuss the accounting equation, double entry principle, what is an account, rules for debiting and crediting, chart of accounts and the accounting cycle.
6) Discuss the basic steps in the recording process, using the transaction of Wong Ltd for the month
ended 31 October (attached). Your discussion and presentation should include the following:
a) Analysis each transaction in terms of its effect on the accounts.
b) Recording of each transaction information in a journal.
c) Transferring (posting) the journal information to the appropriate accounts in the ledger.
d) Preparation of a trial balance (from account balances in the general ledger).

Wong Pty Ltd

The following transactions are for it’s first month of operation, October.
(1) Issues shares for cash. On 1 October Wong Pty Ltd issues shares in exchange for $10 000 cash.
(2) Borrows money from a bank. On 1 October Wong Pty Ltd borrows$5000 from the ANZ Bank.
(3) Purchase of office equipment for cash. On 2 October Wong Pty Ltd acquires office equipment by paying $5000 cash to Superior Equipment Sales Ltd.
(4) Receipt of cash in advance from customer. On 2 October Wong Pty Ltd receives a $1200 cash advance from R. Knox, a client.
(5) Renders services for cash. On 3 October Wong Pty Ltd receives$10 000 in cash from Copa & Co. for advertising services performed.
(6) Payment of rent in cash. On 3 October Wong Pty Ltd pays its office rent for the month of October in cash, $900.
(7) Payment of insurance in cash. On 4 October Wong Pty Ltd pays$600 for a 1-year insurance policy that will expire next year on 30 September.
(8) Purchase of supplies on credit. On 5 October Wong Pty Ltd purchases an estimated 3-month supply of advertising materials on account from Aero Supply for $2500.
(9) Hiring of new employees. On 9 October Wong Pty Ltd hires four new employees to begin work on 15 October. Each employee is to receive a weekly salary of $500 for a5-day working week, payable every 2 weeks.
Employees are to receive their first pay on 26 October.
(11) Payment of cash for employee salaries. Employees have worked 2weeks, earning $4000 in salaries, which are paid on 26 October.

The following transactions are for it’s first month of operation, October.
(1) Issues shares for cash. On 1 October Wong Pty Ltd issues shares in exchange for $10 000 cash.
(2) Borrows money from a bank. On 1 October Wong Pty Ltd borrows$5000 from the ANZ Bank.
(3) Purchase of office equipment for cash. On 2 October Wong Pty Ltd acquires office equipment by paying
$5000 cash to Superior Equipment Sales Ltd.
(4) Receipt of cash in advance from customer. On 2 October Wong Pty Ltd receives a $1200 cash advance
from R. Knox, a client.
(5) Renders services for cash. On 3 October Wong Pty Ltd receives$10 000 in cash from Copa & Co. for
advertising services performed.
(6) Payment of rent in cash. On 3 October Wong Pty Ltd pays its office rent for the month of October in cash,
$900.
(7) Payment of insurance in cash. On 4 October Wong Pty Ltd pays$600 for a 1-year insurance policy that will
expire next year on 30 September.
(8) Purchase of supplies on credit. On 5 October Wong Pty Ltd purchases an estimated 3-month supply of
advertising materials on account from Aero Supply for $2500.
(9) Hiring of new employees. On 9 October Wong Pty Ltd hires four new employees to begin work on 15
October. Each employee is to receive a weekly salary of $500 for a5-day working week, payable every 2 weeks.
Employees are to receive their first pay on 26 October.
(11) Payment of cash for employee salaries. Employees have worked 2weeks, earning $4000 in salaries,
which are paid on 26 October.

Answer rating: 100% (QA)

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