BS110 Assignment S2 2011

BS110 Assignment S2 2011 - BS110 ACCOUNTING SEMESTER 2,...

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BS110 Accounting Assignment S2 2011 Page 1 BS110 ACCOUNTING SEMESTER 2, 2011 ASSIGNMENT PART 1 INTRODUCTION 1. This assignment is split into two parts. The first part is an individual assignment, and the second part is a group assignment. Details of the second part will be given to you at a later date. 2. THE DUE DATE FOR PART 1 IS: MONDAY 10 TH OCTOBER 2011 BY 4PM. LATE SUBMISSIONS WILL NOT BE ACCEPTED 3. This handout contains the general information required to complete Part 1 of the assignment, as well as background information about the company and the transaction details. 4. Please ensure that you keep a photocopy of your assignment.
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BS110 Accounting Assignment S2 2011 Page 2 COTTAGE DESIGNS PTY LTD GENERAL INFORMATION Cottage Designs sells individually designed pieces of furniture bought from a number of suppliers who source the goods from local and overseas manufacturers. The goods are sold to several furniture and décor shops throughout Australia. Cottage Designs uses a perpetual inventory system, but does not maintain a detailed stock ledger. All inventory purchased and sold is processed to one inventory account as the transactions occur. Cottage Designs maintains Accounts Receivable and Accounts Payable subsidiary ledgers, and records all its transactions in appropriate journals (purchases journal, sales journal and general journal), and also uses a cashbook (cash payments and cash receipts). ALL inventory is marked up by 25% on cost. No trade discounts are offered to any of Cottage Designs’ customers, although settlement discounts are offered to some customers. For control purposes, any freight charged on goods purchased is processed in a separate “freight inwards” account. Below is the Trial balance for Cottage Designs as at 31 st May 2011. The transactions and additional information for the month of June 2011 follow after the Trial Balance.
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BS110 Accounting Assignment S2 2011 Page 3 DEBIT CREDIT ACCOUNT $ $ Cash at bank 597,744 Accounts receivable 271,878 Inventory 490,662 Office Supplies 47,290 Prepaid insurance 38,016 Prepaid rent - office premises 34,500 Accumulated depreciation - store equipment 153,962 229,871 525,420 Store equipment - at cost 439,890 Accounts payable 440,496 Tax payable (GST) 6,412 Unearned sales revenue 20,538 Non-current loan 258,000 Retained Earnings 704,598 Share capital 300,000 Sales 4,396,072 Cost of goods sold 3,516,859 Discount allowed 40,149 12,889 Freight inwards 2,531 Freight outwards 1,821 Interest expense 18,274 Rent expense 77,625 Salaries expense 443,472 Discount received 41,646 Interest revenue 7,425 TOTALS 6,559,020 6,559,020 COTTAGE DESIGNS PTY LTD TRIAL BALANCE AS AT 31 MAY 2011
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BS110 Accounting Assignment S2 2011 Page 4 The accounts receivable subsidiary ledger had the following balances in it as at 31 May 2011: Accounts Receivable Name Balance outstanding at
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This note was uploaded on 10/04/2011 for the course ACCT 101 taught by Professor O'tousa during the Spring '08 term at Notre Dame.

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BS110 Assignment S2 2011 - BS110 ACCOUNTING SEMESTER 2,...

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