BACT105 - Individual Business Report on Yolanda Renner Company

Yolanda Renner is a small company named as Beautiful Mind Book (BMB) operating within a small suburb of  NSW. The company is a retailer of books i.e. BMB buy books and sell them to the customers at a profit. It uses  perpetual inventory system. The post-closing Trial Balance as of 31 March 2021of BMB along with some  additional transactions that took place in the month of April is given below: 

Yolanda Renner runs a retailing book shop named Beautiful Mind Book. He purchases books and sell them to local customers to make a profit. The bookshop uses perpetual inventory system. 

The post-closing trial balance of Beautiful Mind Book at 31 March 2021 is presented below: 

Beautiful Mind Book 

Post-Closing Trial Balance 

31-Mar-21 

Debit Credit 

Cash 20,500 

Accounts receivable 30,250 

Inventory 44,670 

Supplies 5,700 

Equipment 134,000 

Accumulated depreciation 28,000 

Accounts payable 62,120 

Bank loan 40,000 

Owner's capital 105,000 

total 235,120 235,120 

In the month of April, the following transactions have taken place: 

Month Date Transactions 

April 1 Purchased books on account for $ 7,000 from ABD Pubishers, FOB shipping point. credit terms: 2/15, n/30. Beautiful Mind paid the transportation company $ 75 

3 Sold books on account to Mary for $ 9,100 The cost of the books was $ 4,800 credit terms: 2/10, n/30.  

8 Received $ 150 credit for books returned to ABD Publishers.  

12 Received the payment from Mary. 

14 Paid ABD outstanding amount from transaction on 1 April. 

22 Collected $ 10,250 from customers on account.  

23 Paid $ 5,000 to suppliers on credit. 

24 Sold books for cash $ 3,200 The cost of the books sold was $ 2,200 

25 Paid freight out of $ 50 

30 Paid shop rent of $ 1,500 

30 A stock take was carried out and found supplies on hand was $ 1,200 

30 Beautiful Mind Book adopts straight-line depreciation method. The depreciation 

rate is 10% per year. 

30 interest of $ 1,200 was paid for the bank loan.

Yolanda Renner is a small company named as Beautiful Mind Book (BMB) operating within a small suburb of  NSW. The company is a retailer of books i.e. BMB buy books and sell them to the customers at a profit. It uses  perpetual inventory system. The post-closing Trial Balance as of 31 March 2021of BMB along with some  additional transactions that took place in the month of April is given below: 

Yolanda Renner runs a retailing book shop named Beautiful Mind Book. He purchases books and sell them to local customers to make a profit. The bookshop uses perpetual inventory system. 

The post-closing trial balance of Beautiful Mind Book at 31 March 2021 is presented below: 

Beautiful Mind Book 

Post-Closing Trial Balance 

31-Mar-21 

Debit Credit 

Cash 20,500 

Accounts receivable 30,250 

Inventory 44,670 

Supplies 5,700 

Equipment 134,000 

Accumulated depreciation 28,000 

Accounts payable 62,120 

Bank loan 40,000 

Owner's capital 105,000 

total 235,120 235,120 

In the month of April, the following transactions have taken place: 

Month Date Transactions 

April 1 Purchased books on account for $ 7,000 from ABD Pubishers, FOB shipping point. credit terms: 2/15, n/30. Beautiful Mind paid the transportation company $ 75 

3 Sold books on account to Mary for $ 9,100 The cost of the books was $ 4,800 credit terms: 2/10, n/30.  

8 Received $ 150 credit for books returned to ABD Publishers.  

12 Received the payment from Mary. 

14 Paid ABD outstanding amount from transaction on 1 April. 

22 Collected $ 10,250 from customers on account.  

23 Paid $ 5,000 to suppliers on credit. 

24 Sold books for cash $ 3,200 The cost of the books sold was $ 2,200 

25 Paid freight out of $ 50 

30 Paid shop rent of $ 1,500 

30 A stock take was carried out and found supplies on hand was $ 1,200 

30 Beautiful Mind Book adopts straight-line depreciation method. The depreciation 

rate is 10% per year. 

30 interest of $ 1,200 was paid for the bank loan.

Required:  

Based on the above information: 

1) Complete the whole accounting cycle for the company (i.e. Journalize the transactions in the  journal, prepare adjusted Trial Balance, Income Statement, Statement of Equity and Balance Sheet.)  Please ensure that the given answer should be in the form of report and must include discussion on  the following: 

2) What is an accounting cycle? Is every company required to complete it? 

3) Explain the purpose, content, format and practical applications of all the financial statements  generated as a result of completing an accounting cycle? 

4) What is the role of double entry system in the accounting cycle? 

5) What is the role of ethics while an accounting cycle is being completed? 

6) What support does the financial information generated by completing an accounting cycle provides  to the management in their decision making?  

7) Provide a recommendation whether using perpetual inventory system (currently being used) will be  ideal for the company. 

Note: This task must be completed in a report format (word document) i.e. in your business report, you must  include Executive Summary, Introduction, Main body, Recommendations and Conclusions. Harvard style  reference must be used for both in-text referencing and reference list.  

ASSESSMENT SUBMISSION: 

The assignment must be submitted online in Moodle. All materials MUST be submitted electronically in Microsoft Word format. Other formats (e.g., pdf or MAC file) may not be readable by markers. Please be aware that any assessments submitted in other formats will be considered LATE and will lose marks until it is presented in MS Word. No paper based or hardcopy submission will be accepted.  

  

Our Academic Learning Support (ALS) team would be happy to help you with understanding the task and all other assessment-related matters. For assistance please speak to our Academic Learning Skills Coordinators, Barbara Karena in Sydney ([email protected]) or Ryan Honner in Melbourne ([email protected]). They can help you with understanding the task, draft checking, structure, referencing and other assignment-related matters. For online help and support please click the following link and navigate Academic Learning Support in Moodle: 

http://moodle.kent.edu.au/kentmoodle/course/view.php?id=5

GENERAL NOTES FOR ASSESSMENT TASKS 

Content for Assessment Task papers should incorporate a formal introduction, main points and conclusion. 

Appropriate academic writing and referencing are inevitable academic skills that you must develop and  demonstrate in work being presented for assessment. The content of high quality work presented by a student must be fully referenced within-text citations and a Reference List at the end. Kent strongly recommends you  refer to the Academic Learning Support Workshop materials available on the Kent Learning Management System  (Moodle). For details please click the link http://moodle.kent.edu.au/kentmoodle/mod/folder/view.php?id=3606 

and download the file titled “Harvard Referencing Workbook”. This Moodle Site is the location for Workbooks  and information that are presented to Kent Students in the ALS Workshops conducted at the beginning of each  Trimester. 

Kent recommends a minimum of FIVE (5) references in work being presented for assessment. Unless otherwise specifically instructed by your Lecturer or as detailed in the Unit Outline for the specific Assessment Task, any paper with lessthan five (5) references may be deemed not meeting a satisfactory standard and possibly be failed. 

Content in Assessment tasks that includes sources that are not properly referenced according to the “Harvard Referencing Workbook” will be penalized. 

Marks will be deducted for failure to adhere to the word count if this is specifically stated for the Assessment Task in the Unit Outline. As a general rule there is an allowable discretionary variance to the word count in that it is generally accepted that a student may go over or under by 10% than the stated length. 

GENERAL NOTES FOR REFERENCING 

 Kent Institute Australia Pty. Ltd. Assessment Brief ABN 49 003 577 302 CRICOS Code: 00161E RTO Code: 90458 Version 2: 11th October, 2019 Page 4 of 5 TEQSA Provider Number: PRV12051 

References are assessed for their quality. Students should draw on quality academic sources, such as books,  chapters from edited books, journals etc. The textbook for the Unit of study can be used as a reference, but not  the Lecturer Notes. The Assessor will want to see evidence that a student is capable of conducting their own  research. Also, in order to help Assessors determine a student’s understanding of the work they cite, all in-text  references (not just direct quotes) must include the specific page number(s) if shown in the original. Before  preparing your Assessment Task or own contribution, please review this ‘YouTube’ video (Avoiding Plagiarism  through Referencing) by clicking on the following link: link: 

http://moodle.kent.edu.au/kentmoodle/mod/folder/view.php?id=3606 

A search for peer-reviewed journal articles may also assist students. These type of journal articles can be located  in the online journal databases and can be accessed from the Kent Library homepage. Wikipedia, online  dictionaries and online encyclopaedias are acceptable as a starting point to gain knowledge about a topic, but  should not be over-used – these should constitute no more than 10% of your total list of references/sources.  Additional information and literature can be used where these are produced by legitimate sources, such as  government departments, research institutes such as the National Health and Medical Research Council (NHMRC),  or international organisations such as the World Health Organisation (WHO). Legitimate organisations and  government departments produce peer reviewed reports and articles and are therefore very useful and mostly  very current. The content of the following link explains why it is not acceptable to use non-peer reviewed websites (Why can't I just Google?): https://www.youtube.com/watch?v=N39mnu1Pkgw 

(thank you to La Trobe University for access to this video).