Summary
Summary FAC1502 ASSIGNMENT2 SEMESTER 1 2023
- Institution
- University Of South Africa (Unisa)
THE DOCUMENT CONTAIN GUIDELINES ON THE ASSIGNMENT 2 FOR FINANCIAL PRINCIPLES FAC1502
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Assessment 2Question 1
Not yet
answered Extract of pre-adjustment trial balance of Rocky Traders as at 30 September 20.22
Marked out of
Debit Credit
4.00
R R
Capital (1 October 20.21) ………………………………………….............……… 200 000
Drawings……………………………………………………………….....................…… ?
Inventory: Trading (1 October 20.21) ……………………………….......…… 61 725
Allowance for credit losses……………………………………………...........…. 4 450
Mortgage: GL Bank ……………….................................................................. 195 000
Fixed deposit (at 7.5% per annum) ………………………………….........… 50 000
Sales…………………………………………………………………......................……. 345 060
Carriage on purchases………………………………………….............………… 9 500
Sales returns………………………………………………………….................……. 6 780
Rental income…………………………………………………………................…. 39 600
Purchases……………………………………………………………..................……. 197 800
Purchases returns…………………………………………………..............……… 2 890
Depreciation…………………………………………………………...............……. 38 367
Salaries and wages………………………………………………….............……... 88 500
Insurance expenses………………………………………………….............……. 27 300
Telephone expenses………………………………………………….............…… 14 280
Water and electricity…………………………………………………...........……. 23 450
Credit losses…………………………………………………………................…….. 1 600
After a year-end inventory count, the value of trading inventory on hand was R123 450.
Additional information
(a) On 30 January 20.22, Rocky Traders decided to lease out the office space on the business’ premises for a monthly rental amount of R5 500. The rental amount is paid in advance
on the last day of each month.
Use the information in the pre-adjustment trial balance and the additional information to determine the correct journal entries for the closing adjustment of the lease
rentals at year-end:
Instructions:
Drag the correct answer into the correct space.
An option can be used more than once.
Question 2
Not yet
answered Indicate by choosing the correct option whether the following statement is true or false:
Marked out of The presence of a purchases account indicates that the periodic inventory system is in use.
1.00
Select one:
True
False
,Question 3
Not yet
answered Indicate by choosing the correct option whether the following statement is true or false:
Marked out of Accrued income which relates to the current financial period, but which has not yet been received at the end of the current financial period will be added to the amount already
1.00 Dashboard received for the year to determine the amount that needs to be posted to the profit or loss account.
Calendar
Select one:
True
False
Question 4
Not yet
answered On 1 May 20.18 Venus Traders entered into a new two-year advertising agreement with Tino Advertising Agency. The advertising agreement was effective with immediate effect
Marked out of and stipulated that Venus Traders would pay R2 430 per month to Tino Advertising Agency for advertising services that would be provided by Tino Advertising Agency on a monthly
1.00 basis. Tino Advertising Agency has performed all the necessary advertising services that was required from them since the effective date of the advertising agreement for the current
financial period (the current financial period ends on 28 February 20.19).
The pre-adjustment trial balance for the year ended 28 February 20.19 reflected advertising expenses for an amount of R26 720 as well as accrued advertising expenses of R5 170 on
1 March 20.18 (the beginning of the current financial period). On 20 April 20.18 Venus Traders paid the advertising expenses that was outstanding from the previous financial period,
but the bookkeeper completely forgot to record this transaction in the accounting books of Venus Traders. The advertising expenses not applicable to the current financial period
must still be provided for.
The correct amount to be disclosed for advertising expenses in the statement of profit or loss and other comprehensive income for the year ended 28 February 20.19 is ...
Instructions:
Use a full stop to indicate any decimals (e.g.: 1000.01)
Round off to the nearest Rand (e.g.: 50.56 is 51)
Only show the amount, do not show the R (e.g.: 12141.72)
Answer: 24300.00
Question 5
Not yet
answered Isolation Traders paid an insurance premium of R10 824 on 1 March 20.19 for 12 months. Upon the inspection of the pre-adjustment trial balance for the year ended 31 May 20.19,
Marked out of the bookkeeper noticed that insurance premiums amounting to R7 380 for the period starting 1 June 20.18 until 28 February 20.19, were paid in the previous financial period. The
1.00 bookkeeper also noticed that, the insurance premium paid on 1 March 20.19 has not yet been recorded in the books, and no adjustment has been processed and no reversal has been
processed relating to insurance premium paid in the previous financial period.
The amount for prepaid expenses to be shown in the statement of financial position as at 31 May 20.19 will be:
NB: Instructions
Use a full stop to indicate any decimals (e.g.: 1000.01)
Only show the amount, do not show the R (e.g.: 12141.72)
Round the amount of to the nearest R (e.g.: 12141.72 will be
12142)
Answer: 10086.00
,Question 6
Not yet
answered The financial manager of Steven Traders hired an inexperienced bookkeeper, on 1 February 20.19, who was immediately required to assist with the creation of an allowance for credit
Marked out of
losses (current financial year ends on 28 February 20.19). The auditors of Steven Traders raised an audit finding in the previous financial period, stating that trade and other receivables
2.00 Dashboard were overstated since no allowances for credit losses has been created although there was evidence that some of the debtors did not pay their accounts in the previous financial
Calendar
periods.
Dashboard / Courses / UNISA / 2023 / Semester 1 / FAC1502-23-S1 / Welcome Message / Assessment 2
The financial manager wants to avoid this audit finding in the current financial period. The financial manager requested the bookkeeper to write a memo and indicate which accounts
will be affected when the allowance for credit losses is created? The bookkeeper has written the following statement down and requires you to confirm whether the statement is true
or false when the allowance for credit losses is created.
Trade receivables control account balance in the general ledger will only be reduced when the actual credit losses are verified, by either;
debiting the allowance for credit losses and crediting trade receivable/control account, or by
debiting the credit losses and crediting trade receivable/control account (while the allowance for credit losses remain unchanged).
Select one:
True
False
Question 7
Not yet
answered
Marked out of R
3.00
Equipment………………………………………………………….. 200 000
Trade receivables control………………………………………… 20 000
Bank………………………………………………………………… 10 000
Water and electricity: Deposit................................................... 2 350
Rent income deposit................................................................. 10 500
Trade payables control…………………………………………… 30 000
Instructions:
Drag the correct answer into the correct space (cell phone click on the answer and click on the place where you want to place the amount - also keep your cell phone horizontal when
doing the question).
An option can be used more than once.
Question 8
Not yet
answered
Marked out of
8.00
The effect that the adjustment journal entry will have on the basic accounting equation of Ralf Traders for the year ended 28 February 20.19 will be ...
Instructions:
Use a full stop to indicate any decimals (e.g.: 1000.01)
Round off your final answer to the nearest Rand (e.g.: 50.56 is 51)
Adjustment journal – 28 February 20.19
Account to be debited Element of the Account to be credited Element of the
account to be account to be Amount Assets Equity Liabilities
debited credited
R
Prepaid expenses Assets Salaries and wages Expenses 9000 Increase Increase Nothing recorded
, Question 9
Not yet
answered Indicate by choosing the correct option whether the following statement is true or false:
Marked out of Settlement discount received will be closed off to the sales account at the end of a financial year.
1.00 Dashboard
Select one:
True
False
Question 10
Not yet
answered
Marked out of
1.00
20.1 20.2
R R
Vehicles at cost ………………………………………………. 86 400 86 400
Furniture and equipment at cost………………………….... 79 500 79 500
Inventory……………………………………………................ 65 310 ?
Trade receivables control…….……………………………... 26 610 37 050
Bank (favorable)…………………………………………...... 75 000 60 000
Long-term borrowings……….……………………………...... 90 000 45 000
Trade payables control……….……………………………… 28 500 38 100
Accrued expenses…………………….…………………....... 10 200 6 900
Prepaid expenses……………………………………………… 1 080 1 095
R
Inventory 83 607
Stationery 1 875
Packing materials 450
The total amount for inventories to be disclosed in the statement of financial position of Bengewa Traders as at 28 February 20.1 will be?
Answer: 85932.00
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