Principles of Accounting BAP 11 Assignment 1 2013 Semester 3 Class Day/Time: ________________ Due Date: Week 6 Friday 17th January 2014 Time: 5 PM Total marks for all questions 75 Weight: 25% This is an individual assignment. The assignment consists of 6 questions all of which are to be attempted. Please submit into Moodle directly, by the due date. Late submissions will attract a penalty of 5% for each day it is late. This assignment must be your own work and submitted with an assignment cover sheet. Question 1. 25 marks The following questions are required to be answered relate to the course text Questions a) Statement of Cash flows direct method Chapter 18 ; Required i. Prepare a cash flow statement using the direct method for operating cash flows ii. Prepare a reconciliation of the [profit and cash provided by the operations b) Bank reconciliation 5 marks Required prepare a bank reconciliation for the Month ended the 31 March 2001 c) Accounting for Shares 10 marks Demons Ltd issued a prospectus for the issue of 100,000 $5.00 shares on 1 January2012.The prospectus required payment of $3.00 per share on application and $2.00 to be paid when called. The company received applications for 120,000 shares by the closing date of 28February 2012.100,000 shares were issued on 1 March 2012 with excess application money being refunded. On 30 April 2012 the company called the balance of $2.00 on the shares. All call money was received by 15 May 2012.On 30 June 2012 Demons Ltd declared and paid a dividend of 5 cents per share. Required: Prepare the journal entries for the year ended 30 June 2012 to account for the above transactions. d) Accounting for Liabilities 5 Marks Easy Company Ltd issues a debenture at a premium for a period of 10 years the company pays interest on 31 December and 1 July. The debenture has a par value of $1,000,000.00 and is issued at premium of 105 at an interest rate of 9% Prepare journal entries to reflect the following; i. issue of debentures on 1-July ii. payment of interest on 1 January iii. accrual on 31 March e) Accounting for Inventory 10 marks f) Analysis of Accounting Information 10 Marks g) Preparation of production and cash budget 10 marks Budget data unit sales January 25,000.00 February 30,000.00 March 32,000.00 selling price $ 10.00 per unit cash sales 20% during month of sale Collections on account 50% in month of sale Collections on account 25% after month of sale Amount uncollectable 5% balance on accounts receivable at 1 January $ 420,000.00 Of which $350,000 relates to December sales and the remainder related to November sales 5% of the total balance is uncollectable 1 prepare sales budget for the quarter 2 prepare cash collections budget for the quarter 3 Calculate the balance in accounts receivable at the end of March