Group assignment task 1

Read the following case and answer the questions,

Stage 1 You tried to establish a business. You invested $1000 to this business.

Stage 2 You borrowed $500 from a bank.

Stage 3 You spent $400 to acquire a machine..

Stage 4 You borrowed a car from a business partner. This car was valued at $600.

Stage 5 You spent $ 800 to buy goods from a supplier.

Stage 6 You sold half goods to customers and received $ 600 cash.

Stage 7 You repaid $300 to the bank.

Question (1): Construct the accounting equation in each stage (1 marks)

Question (2): List all relevant accounts and their values at the end of the case. (1 marks)

Question (3): Comment on how the accounting equation changes across different stages. (2 marks)

Group assignment task 2

Study the dumpling shop case and then prepare a report to answer the questions.

Event 1: Mark invested $1.200 to build a company that sells dumplings.

Event 2: Mark worried that his contribution is not enough to build this business. Therefore, he borrowed 5600 from a friend.

Event 3: Mark spent $500 to build a booth that could be used for 8 weeks. After that the value of this booth will be $100.

Event 4: Mark rented a storage space. At the first week, he paid 5 weeks of rent for a total of $500.

Event 5: During Week 1. Mark spent $ 200 to purchase 200 boxes of frozen dumplings.

Event 6: During Week 1. Mark cooked and sold 120 boxes of dumplings for $500.

Suppose you worked as an accountant for this business.

Question (1): Explain the role of an accounting system in this case business, including the purpose of accounting and how to achieve this purpose (amark)

Question (2): Establish the T-account Map (bookkeeping) for this case at the end of Week 1. (3 marks)

Question (3): Prepare the balanced sheet (financial position statement) for this case at the end of Week 1. (2 marks)

Question (4) Prepare the income statement (profit-loss statement) for this case at the end of Week 1 (1 mark)

Question (5): In Event 3. is the expenditure of $400 on establishing the booth an expense? Why? (1 marks)

Question (6): Identify all expenses in this case and explain why they are expenses. (1 marks)

Question (7): Reflect on your answers for questions (2) to (6), explain your role as an accountant in the case business and the

implications of International Financial Report Standards in your accounting activities/marks)

Question (8): Suppose Mark (the business owner) asked you to adjust the bookkeeping entries relating to income to change income

from $500 to $900: and then make a new account 'receivable $400 to cover this increase. That is, to fabricate a credit sale $400.

Mark explained that a higher income could contribute to a greater possibility of borrowing more money from the bank in the future.

Study this scenario, and then explain impacts of ethical issues facing accounting society and responsible judgement involved in

decision making (2 Marks)