Level 2 Accounting, 2010
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1 For Supervisor s Level 2 Accounting, Prepare financial statements and related accounting entries for sole proprietors Credits: Five 2.00 pm Monday 15 November 2010 Check that the National Student Number (NSN) on your admission slip is the same as the number at the top of this page. Pull out Resource Booklet 90224R from the centre of this booklet. Answer ALL the questions in this booklet. If you need more space for any answer, use the page(s) provided at the back of this booklet and clearly number the question. Check that this booklet has pages 2 11 in the correct order and that none of these pages is blank. YOU MUST HAND THIS BOOKLET TO THE SUPERVISOR AT THE END OF THE EXAMINATION. For Achievement Prepare financial statements following good accounting practice, with some additional information correctly treated. Prepare accounting entries for balance sheet day adjustments. Achievement Criteria Achievement with Merit Prepare financial statements following good accounting practice, with the majority of additional information correctly treated. Prepare a range of accounting entries for balance sheet day adjustments following good accounting practice. Achievement with Excellence Prepare financial statements following good accounting practice, with all or nearly all additional information correctly treated. Prepare a wide range of accounting entries for balance sheet day adjustments consistently following good accounting practice. Overall Level of Performance (all criteria within a column are met) New Zealand Qualifications Authority, 2010 All rights reserved. No part of this publication may be reproduced by any means without the prior permission of the New Zealand Qualifications Authority.
2 2 You are advised to spend 55 minutes answering the questions in this booklet. Note: In this assessment, GST is 12.5 %. QUESTION ONE: Accounting Entries for Balance Sheet Day Adjustments Refer to Resource One in Resource Booklet 90224R to record the following General Journal and General Ledger entries for Road Construction. Part A: General Journal Entries Prepare the General Journal entries below to record the following entries on Balance Sheet day. Note: Narrations are not required. (a) Record the drivers wages owing $ / 03 / 10 (b) Record the depreciation expense on the manager s truck. 31 / 03 / 10 (c) Close Dave s drawings account for the year ended 31 March / 03 / 10 (d) Write off bad debts of $1 125 including GST. 31 / 03 / 10
3 3 Part B: General Ledger Entries Complete the General Ledger accounts below to show the relevant transactions for Balance Sheet day and the first day of the next financial year, if required. You MUST include correct dates. (a) Prepare the Dividends Received ledger account by: recording the dividends owing $750 recording the closing entry recording the reversing entry. Dividends Received 31 / 03 / 10 Balance 250 Cr (b) Prepare the Accrued Expenses ledger account by: recording the drivers wages owing $1 800 recording the reversing entry. Accrued Expenses
4 4 This page has been deliberately left blank.
5 5 QUESTION TWO: Financial Statements Refer to Resource One in Resource Booklet 90224R to answer the following questions. Part A: Income Statement Prepare the Income Statement for Road Construction. Revenue Construction receipts Other income Road Construction Income Statement for the year ended 31 March 2010 $ $ $ Less expenses Construction expenses Administrative expenses Finance costs
6 6 Part B: Statement of Financial Position The Statement of Financial Position and the Balance Sheet are the same thing. In this question, the Statement of Financial Position has been used. Prepare the Statement of Financial Position extract and Notes extracts for Road Construction. Current assets Accounts receivable (Note 1) Road Construction Statement of Financial Position (extract) as at 31 March 2010 $ $ $ Non-current assets Investments (Note 2) Property, plant and equipment Total carrying amount (Note 3) Total assets Less liabilities Current liabilities Non-current liabilities Loan (Note 4) Total liabilities Net assets
7 7 Note 1 Accounts receivable Notes to the Statement of Financial Position (extract) $ $ Note 2 Investments Investments comprise shares in: Note 4 Loan The Loan:
8 8 Part C: Cash Flow Statement Refer to Resource Two in Resource Booklet 90224R to answer the following questions. (a) Use the space below to calculate cash from customers / accounts receivable. Label your workings. Note: Workings will be marked. (b) Use the space below to calculate cash paid to suppliers / accounts payable. Label your workings. Note: Workings will be marked.
9 (c) Use your answers to (a) and (b) and the information from Resource Two to complete the Cash Flow Statement for Road Construction for the month of May Road Construction Cash Flow Statement for the month ended 31 May $ $ Receipts Total receipts Less payments Total payments Net increase / decrease in cash Plus opening bank balance Equals closing bank balance
10 10 Extra paper for continuation of answers if required. Clearly number the question. Question number
11 11 Extra paper for continuation of answers if required. Clearly number the question. Question number
12
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