Seminar 2 AD1101 S2 2122 (students) PDF

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Summary

some financial notes...

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NANYANG BUSINESS SCHOOL AY 2021/22 SEMESTER 2 AD1101-4AU / AD1102-3AU: FINANCIAL ACCOUNTING Seminar 2 for week beginning 17 January 2022 Questions for Class Discussion (taken from main text unless otherwise stated)

Checklist:

Yes / No

Have you completed your LAMS sequences for this week’s topic? Have you completed this week’s CengageNow practice assignment questions? Are you up-to-date in the completion of all your graded activities? Please refer to Appendix 2 of the course outline for the deadlines to complete the various weekly graded activities. NOTE: ‘NO EXTENSION’ will be granted for missing any of the deadlines.

Q1.

In-Class Group Exercise: Identifying Normal Balance Your instructor will provide you with the name of a company listed on a stock exchange. You will need to bring your own device to download the annual report* of the company. This applies to all subsequent in-class group exercises. Refer to the financial statements of the company for the year ended 31 January 2021, a nd as a group answer the following questions:

* You may go to the company’s website.

The following are some of the accounts taken from the company’s financial statements. For each of the following accounts, indicate whether it is a “DEBIT” or a “CREDIT” balance under the “Normal Balance” column Accounts 1 Accrued Expenses

\

Normal Balance

Accounts

Normal Balance

9 Deferred revenues

2 Additional paid-in capital

10 Depreciation

3 Amortisation of deferred contract acquisition costs

11 Prepaid Expenses

4 Common stock

12 Research and development

5 Computer and Office Equipment 6 Convertible preferred stock

13 Retained Earnings 14 Sales and marketing

7 Cost of revenue

15 Stock-based compensation cost

8 Deferred contract acquisition cost

16 U.S. Government Agency Securities

Q2. ShineBrite Service Centre The trial balance of ShineBrite Service Centre Pte Ltd on 1 March 20X6 lists the entity’s assets, liabilities and shareholders’ equity on that date. ShineBrite Service Centre Pte Ltd Trial Balance As at 1 March 20X6 Account Title Debit Cash $26,000 Accounts receivable 4,500 Accounts payable Share capital Retained earnings Total $30,500

Credit $2,000 10,000 18,500 $30,500

During March 20X6, the business performed the following transactions: 1. 2 March: Borrowed $45,000 from the bank, with ShineBrite signing a note payable 2. 4 March: Paid cash of $40,000 to a real estate company to acquire freehold land 3. 6 March: Performed service for a customer and received cash of $5,000 4. 9 March: Purchased supplies on credit of $300 5. 11 March: Performed customer service and earned revenue on account of $2,600

6. 14 March: Paid $1,200 on account 7. 16 March: Paid the following cash expenses: salaries: $3,000; rent: $1,500; and interest: $400 8. 19 March: Received $3,100 on account 9. 22 March: Received a $200 utility bill that will be paid next week 10. 25 March: Declared and paid $1,800 dividend Required (a) Prepare the journal entry for each transaction on March 20X6 (b) Set up T-accounts with the proper account balances on 1 March 20X6, and post the March 20X6 entries into the T-accounts (c) Prepare a trial balance as of 31 March 20X6.

Q3.

SSAS P3-51 Correcting a Trial Balance Additional Requirement Determine (a) total liabilities (b) total equity, as at November 30, 2012.

Worksheets

Q2 (a) Date

Account

Debit

Credit

Cash

Dividend

Accounts Receivable ________________ Inventory_________________________

Land

Rent Expenses_____________________

Utility Expense ________________________ Notes Payable_____________________

Accounts Payable

Share Capital (Capital Stock)_________

Retained Earnings

Sales Revenue

Interest Expense

Salary Expenses

Requirement (c) ShineBrite Service Centre Pte Ltd Trial Balance As at 31 March 20X6 Account Title

Total

Debit

Credit

Q3 Jeppson Company Inc Trial Balance As at 30 November 2012 Account Title

Total

Debit

Credit...