Q-1 In a spreadsheet why replace cell references with names? Paste an example of a formula using names rather than cell references.
Q-2 How can negative numbers be displayed in brackets; in red? Paste a simple spreadsheet example.
Q-3 Why should an accountant design spreadsheets with a completely separate data entry area and a separate report area? Paste a simple spreadsheet example.
Q-4 What is an 'IF' statement (function)? Provide an accounting example.
Q-5 Microsoft Excel is an example of spreadsheet software. List five further examples of spreadsheet software.
The group of questions above can be answered from any source including internet resources.
Q-6 Explain the essential differences between perpetual and periodic inventory systems. Give examples of products/situations suited to each.
Q-7 Learning Objective: journal entries for a perpetual and periodic inventory systems.
Q-8 This question appears in the Study Guide modules in topic 5 in Interact.
A. From the following data prepare a spreadsheeted worksheet.
Follow the spreadsheet requirements including a separate data entry and report area.
B. Change 5 numbers to produce a second spreadsheet
Q-9 List and explain four accounting principles relevant to inventory. Give examples.
Q-10 List and explain the four major inventory costing (flow) methods.
Q-11 Create a well designed spreadsheet to solve the following.
Q-12 Learning Objective: thinking about internal control issues.
Define internal control. Identify four objectives of internal control. Which objective is most important in your view.
Q-13 Bank Reconciliation ?Examine the following spreadsheet. Explain in detail the structure and function of this spreadsheet.
Q-14 Learning Objective: journalising accounts receivable entries.
Detail the journal entries needed to show sales on credit, the collection of part of the amount owing, the write off of accounts receivable, the reinstatement of an amount written off and the collection in full of the amount owing.
Q-15 Contrast three different methods of calculating bad debts. Create simple examples.
Q-16 How can we use receivables to evaluate a firms financial position?
Q-17 Percentage of sales method for bad debts:
Following are some selected transactions of David Jones (DJ) during 2013 and 2014. Reporting date is 31 December. DJ uses the allowance method and makes adjusting and closing entries on reporting date.
2013
31 December DJ estimated that bad debt expense for the year was 2% on credit sales of $1,200,000 and recorded that amount as expense.
31 December Made the closing entry for bad debt expense.
10 January DJ sold $6000 of inventory to Mills & Brown (MB) on account (Ignore cost of sales).
2014
20 June DJ wrote off the receivable from MB after repeated efforts to collect.
25 July DJ also failed to collect $13,000 receivables from BK and $10,000 from MM and see no hope to collect them in future.
15 August DJ received an apology letter for paying late and $600 from MB.
31 December DJ estimated that bad debt expense for the year was 1.5% on credit sales of $2,000,000, and recorded that amount as expense.
31 December Made the closing entry for bad debt expense.
Required:
1. Open general ledger T accounts for Allowance for doubtful debts and Bad debt expense. All accounts begin with a zero balance.
2. Record the transactions in the general journal and post to the two ledger accounts.
3. The 31 December 2014 balance of Accounts receivable is $500,000. Show how Accounts receivable would be reported on the balance sheet at that date.
Q-18 Accounting for bad debts, bill receivable, dishonoured bills and accrued interest revenue
Following are some selected transactions of King Kong Co (KKC). Reporting date is 31 December. KKC makes adjusting entries to accrue interest and bad debt expenses using Allowance method.
2013
July 1 Sold goods to Ping Pong Co (PPC), receiving a $120 000, 9- month , 9% bill. Ignore cost of sales.
Dec 31 Made an adjusting entry to accrue interest on the PPC bill
Dec 31 The ageing schedule shows that $35,500 of accounts receivable will not be collected. The credit balance in Allowance for doubtful debts is $20,100.
2014
Apr 1 Collected the maturity value of the PPC bill.
Jun 23 Sold merchandise to ABC Supplies, receiving a 60 day, 10% bill for $27 000. Ignore cost of sales.
Aug 22 ABC Supplies dishonored (failed to pay) its bill at maturity; we converted the maturity value of the bill to an account receivable
Nov 16 Loaned $35 000 cash to Triple C, receiving a 90 day, 12% bill.
Dec 5 Collected in full on account from ABC Supplies
Dec 31 Accrued the interest on the Triple C bill
Requirement
Record the transactions in the journal of King Kong Co (KKC). Explanations not required.
Q-19 What kind of account is Bad debts, Accounts receivable, Allowance for bad debts, Accumulated depreciation? Why? (P A L E R)
Q-20 Work Integrated Assessment case study?McDonald's Annual Report
Learning Objectives: The subject you are studying is vocational. It is designed with the workplace in mind.
Work integrated assessment provides opportunities for students to link theory and skills learned in a subject to a real work context.
Students can use these opportunities to develop and practice the professional and academic skills they learn about in a subject or through the online environment and then be assessed on their capabilities in these simulated authentic environments. Work integrated assessment allows students to simulate and situate their learning in an authentic workplace that encourages them to explore their knowledge and apply it to practice. Integrating real world, authentic assessment tasks allows students to learn about the particular environments and culture of their chosen professions, while at the same time absorbing and practicing the skills they need to succeed. Doing these tasks can help students develop skills that can help their employability.
Resources for this task include the 2013 Annual Report for McDonald's Corporation.
Your friend Jack is studying architecture at another University and knows very little about accounting and annual reports. Jack's uncle gave him $20,000 recently to invest. Jack knows you have begun studying accounting and is considering buying McDonald's shares. Jack has looked at the McDonald's annual report for 2013 and has some questions for you.
Present your answers concisely in a business report format.
Jack's questions:
1. How many customers do McDonald's have each year?
2. What are the total assets for 2013?
3. How much are the Foreign currency net assets exposures? Explain this item.
4. Find the Balance Sheet and identify the amounts and explain: Goodwill, Prepaid expenses, Income taxes and Accrued Payroll.
5. Calculate the Working Capital ratio.
6. What issues should Jack keep in mind in deciding to invest in McDonald's shares.
Go to www.mcdonalds to find the McDonald's home page. Click on the "Corporate Info" heading under "Our Story". Select the "Investors" heading. Then click on "Annual Reports" and select the 2013 report.