Q2-1 Naming cells in spreadsheets
In a spreadsheet why replace cell references with names? Paste a simple example of a formula using names rather than cell references. For example Sales less Expenses = Net Income. Create your own example.
Q2-2 Negative numbers
How can negative numbers be displayed in brackets; in red? Paste a simple spreadsheet example.
Q2-3 Separation of Data and report areas
Evaluate why an accountant should design spreadsheets with a completely separate data entry area and a separate report area? Paste a simple spreadsheet example.
Q2-4 IF functions
What is an 'IF' statement (function)? Provide a spread sheeted accounting example.
Q2-5 Spreadsheet apps
Microsoft Excel is an example of spreadsheet software. List three further examples of spreadsheet software. Evaluate the importance of spreadsheet software to computer development. Hint. Google Visicalc.
This group of questions above can be answered from any source including internet resources.
Q2-6 Perpetual versus Periodic systems
Explain the essential differences between perpetual and periodic inventory systems. Give examples of products/situations suited to each. Watch the 3 videos on Inventory in Interact2 Resources.
Q2-7 Journal entries
Show the journal entries for perpetual inventory and periodic inventory systems for the purchase and sale of inventory. Watch the 3 videos on Inventory in Interact2 Resources.
Q2-8 Worksheet and financial reports
Watch the Foot Worksheet movie in Interact2 resources. Download the relevant doc file also on Interact2 resources. This doc file has a template of the example below.
Examine the original data from the video. Create a new report/solution and change every number and enhance/improve the example to prepare a ten column spreadsheeted worksheet and the Financial Reports. Do not create journal entries or ledger accounts. Ensure your trial balance still balances after your data changes.
Follow the spreadsheet requirements including a separate data entry and report area and implement IF functions wherever appropriate. As usual, paste the normal view and the formula view.
Write a summary report evaluating spreadsheets as a tool for accounting. You may wish to search the Internet with terms such as “advantages of spreadsheets” and “spreadsheet errors”. Use the following resource to help you prepare and format your report: http://bit.ly/FoBAcademic-Writing-Skills
Q2-9 Accounting principles
List and explain two accounting principles or concepts relevant to inventory. Give your own examples.
Q2-10 Inventory flow assumptions
List and explain the four major inventory costing (flow) methods.
Q2-11 Application of Inventory flow assumptions.
Create a well-designed spreadsheet to solve the following assuming periodic inventory. Make several of your own changes to the original data and create a new solution. Paste the two solutions and one formula view. Highlight your changes.
Q2-12 Thinking about internal control issues.
How is the separation of duties an example of internal control? Give examples.
Q2-13 Bank Reconciliation
Go to the text page 404. Prepare a well-designed computer spreadsheet to answer P8-3 Dunlap. Change some data to produce your own original solution. Paste the two solutions and one formula view. Why do firms construct bank reconciliation statements on a regular basis?
Q2-14 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. Create your own numbers. A spreadsheet is not required.
Q2-15 Estimating bad debts
Contrast two different methods of estimating bad debts. Create simple examples.
Q2-16 Evaluation of a firm’s financial position
How can we use receivables to evaluate a firm's financial position?
Q2-17 Percentage of sales method
Spreadsheet not required.
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.
31 December DJ estimated that bad debt expense for the year was 3% on credit sales of $1,300,00 and recorded that amount as expense.
31 December Made the closing entry for bad debt expense.
10 January DJ sold $7,000 of inventory to Mills & Brown (MB) on account
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 with no hope to collect them in future.
15 August DJ received an apology letter for paying late and $7,000 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.
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.
Q2-18 Dishonour of a note receivable
Write a scenario which includes a credit sale, a conversion to a Note receivable, the dishonour of the note and subsequent delayed payment. Include journal entries. Create your own simple numbers.
Q2-19 Account classification
What kind of account is Goodwill, Accounts payable, Allowance for bad debts, Accumulated depreciation? Explain. Refer to the P A L E R mnemonic.
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 2014 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 2014 and has some questions for you.
Present your answers concisely in a business report format.
1. How many customers do McDonald’s have each year?
2. What are the total assets for 2014?
3. Find the Balance Sheet and identify the amounts and explain: Goodwill, Prepaid expenses, Income taxes and Accrued Payroll.
4. Calculate the Working Capital ratio.
5. Go to page 54 of the annual report. Create this chart in Excel showing columns. Paste the spreadsheet graph in your assignment.
6. Critically evaluate the Internet as a resource for financial information.