Question 1
The accountant for Bindi Wildlife has compiled the following information about the company and its accounts for the year ended 30 June 2016:
|
Cash
|
$3000
|
|
Prepaid Rent
|
$2000
|
|
Revenues
|
8000
|
|
Expenses
|
4000
|
|
Accounts Payable
|
9000
|
|
Equipment
|
20 000
|
|
Wages Payable
|
5000
|
|
Notes Payable
|
2000
|
(a) What is the total amount of assets belonging to Bindi Wildlife?
(b) What is the total amount that Bindi Wildlife owes for liabilities?
(c) Using the accounting equation, what is the amount of Owners' Equity reported on Bindi Wildlife's balance sheet?
(d) How much net profit did Bindi Wildlifeearn in the year?
Question 2
S Claus operates a small manufacturing business, trading under the name of Toys-4-Kids. The following list of financial data relates to the business as at 30 June 2016.
|
Inventories
Reindeers
Cash
Prepaid insurance
Special food for reindeer
|
$131, 950
70, 300
13, 026
1,500
8,750
|
Plant & equipment (net)
Accounts payable
Salaries payable
Interest-bearing, long-term Borrowings
Contributed capital
Retained profits
|
$183, 000
8,500
1,450
155, 000
198, 626
44, 950
|
Additional information
30% of the figure for interest-bearing borrowings is payable within 12 months of 30 June.
Required
- Prepare a fully classified balance sheet for Toys-4-Kids as at 30 June 2016.
- Briefly explain how you would classify "reindeer".
Question 3
Your friend Alice Blueberry commented that professions usually protect their own members and penalties for breach of ethics, if any, are usually light.
Review the CPA and ICANZ websites (links below) and write a short essay quoting three recent examples to demonstrate how breaches of ethical standards wereseriously treated by the professional organisation.
Explain why the penalties imposed were not considered "light".
Note: Your essay should not exceed 500 words. Recent examples should be limited to between 2011 to 2016.
(Hint: You may wish to refer to theCPA Code of Professional Conduct [https://www.cpaaustralia.com.au/about-us/member-conduct-and-discipline] and address issues such as: Professionalism, Integrity, Confidentiality, Objectivity, Competence, Due care, etc
https://www.cpaaustralia.com.au/about-us/member-conduct-and-discipline/outcome-of-disciplinary-hearings
https://www.charteredaccountants.com.au/The-Institute/Member-complaints-and-discipline/Tribunal-decisions )