Background: Consider a situation where you were working as an accountant in a retailing company.
Two of
your accounting colleagues had abruptly resigned. Your company urgently needed two new accountants.
More than 30 job applications were received. After initial screening, 10 job applicants were invited to sit an
accounting skill test. The results of the test would then be used to determine who to invite for an interview. To
show its appreciation to the job applicants for their time and interest, the Company had a policy to provide
detailed feedback to the job applicants after the test and interview.
The Chief Accountant had asked you to mark a test paper and provide feedback for one job applicant. All the
marking had to be finished today to allow the Chief Accountant to contact the applicants tomorrow and get the
interviews done within the next few days. The Company needed the new accountants to start the jobs as soon
as possible.
Note: Only 5 questions are given in the Accounting Skill Test as an example in this Demo Assignment.
In the real assignment, there will be 20 questions.
Instructions
o In the Accounting Skill Test worksheet, the job applicant's answers are shown in the Answer column.
o If the job applicant's answer is correct:
o In the Marking cell, choose "CORRECT" from the drop-down menu.
(Once you click the corresponding cell in the Marking Column,
the drop-down menu icon will appear at the bottom right corner of the cell.)
o Leave the Feedback cell blank.
o If the job applicant's answer is NOT correct:
o In the Marking cell, choose "INCORRECT" from the drop-down menu.
o In the Feedback cell:
(i) explain why the job applicant's answer is incorrect, and
(ii) identify the correct answer and explain why it is correct
(show your workings where applicable).
In the Feedback cell, if you wish to start a new paragraph in a new line,
press Alt and Enter simultaneously. You may also adjust the row height as necessary.
o Apart from the Marking cells and Feedback cells, you will NOT be able to change the content of other cells.
o After you are done, save your excel file with the file name "ACCT5013_student id".
Example: With a student id no. 12345678, the file name is ACCT5013_12345678.xlsx.
Submission:
Detailed submission instructions will be provided in the real assignment.
o In the real Assignment, you will need to submit your work to two submission points within the time limit.
Additional Information:
- Unless stated otherwise, assume that the accrual basis is used.
- Unless stated otherwise, assume that adjusting entries are prepared annually on June 30 each year.
- Assume that the perpetual inventory system is used for all questions related to inventory.
** Please make sure to submit your work to both submission portals within the time limit! **
Late submissions will attract penalties and they may not be accepted for marking.
** Hint: The number of job applicant's incorrect answers is between 2 to 4.**
Q Question Answer Marking
Which of the following accounts has a normal credit balance?
A) Cost of Sales
1 A
B) Inventory Write-down Expense
C) Losses from Foreign Currency Transactions
D) Accumulated Depreciation
The 10% GST is applicable in this question.
The entity purchased supplies on account, $1,200 (GST exclusive).
The journal entry to record this transction includes:
2 A
A) Dr Supplies $1,200
B) Dr GST Payable $120
C) Cr Accounts Payable $1,200
D) Cr GST Receivable $120
Which of the following can be an adjusting entry for supplies?
A) Dr Supplies Expense Cr Supplies
3 C
B) Dr Supplies Cr Cash
C) Dr Supplies Cr Accounts Payable
D) Dr Cash Cr Supplies
The 10% GST is applicable in this question. The perpetual system is used.
On Jan 10, the entity sold inventory on account, $4,950 (GST inclusive),
terms 2/10, n/30. (Ignore cost of sales.)
On Jan 14, the customer paid cash in full settlement.
The journal entry to record cash collection on Jan 14 from the sales transction
4 above includes: C
A) Dr Cash $4,950
B) Cr GST Payable $495
C) Cr Accounts Receivable $4,950
D) Dr GST Receivable $495
Ignore GST. ABC Co. uses the perpetual inventory system with FIFO method.
In July, the company had the following information about its inventory.
On July 1, the company had 100 units of inventory (cost, $10 each).
On July 5, the company purchased 200 units of inventory for $11 each.
On July 10, the company sold 250 units of inventory for $15 each.
On July 15, the company purchased 400 units of inventory for $12 each.
5 On July 25, the company sold 350 units of inventory for 15 each. A
Which of the following statements is CORRECT?
A) The ending inventory for the month is $1,200.
B) The cost of sales for the month is $7,000.
C) The gross profit for the month is $2,000.
D) All answers given are correct.
Feedback
Q Question Answer
Which of the following accounts has a normal credit balance?
A) Cost of Sales
1 A
B) Inventory Write-down Expense
C) Losses from Foreign Currency Transactions
D) Accumulated Depreciation
The 10% GST is applicable in this question.
The entity purchased supplies on account, $1,200 (GST exclusive).
The journal entry to record this transction includes:
2 A
A) Dr Supplies $1,200
B) Dr GST Payable $120
C) Cr Accounts Payable $1,200
D) Cr GST Receivable $120
Which of the following can be an adjusting entry for supplies?
A) Dr Supplies Expense Cr Supplies
3 C
B) Dr Supplies Cr Cash
C) Dr Supplies Cr Accounts Payable
D) Dr Cash Cr Supplies
The 10% GST is applicable in this question. The perpetual system is used.
On Jan 10, the entity sold inventory on account, $4,950 (GST inclusive),
terms 2/10, n/30. (Ignore cost of sales.)
On Jan 14, the customer paid cash in full settlement.
The journal entry to record cash collection on Jan 14 from the sales transction
4 above includes: C
A) Dr Cash $4,950
B) Cr GST Payable $495
C) Cr Accounts Receivable $4,950
D) Dr GST Receivable $495
Ignore GST. ABC Co. uses the perpetual inventory system with FIFO method.
In July, the company had the following information about its inventory.
On July 1, the company had 100 units of inventory (cost, $10 each).
On July 5, the company purchased 200 units of inventory for $11 each.
On July 10, the company sold 250 units of inventory for $15 each.
On July 15, the company purchased 400 units of inventory for $12 each.
5 On July 25, the company sold 350 units of inventory for 15 each. A
Which of the following statements is CORRECT?
A) The ending inventory for the month is $1,200.
B) The cost of sales for the month is $7,000.
C) The gross profit for the month is $2,000.
D) All answers given are correct.
Marking Feedback
The answer A is incorrect because Cost of Sales is an expense
account. An expense account has a normal Dr balance.
INCORRECT
The correct answer is D. Assumulated depreciation is a contra asset
account. While an asset account has a normal Dr balance, a contra
asset account has a normal Cr balance.
CORRECT
The answer C is incorrect because it is a journal entry to record a
purchase of supplies on account, not an adjusting entry.
The correct answer is A. When purchased, supplies can be
recorded as an asset. When we used some of the supplies, the
INCORRECT
portion used no longer exists and we need to move the portion used
from an asset account to an expense account. This can be done by
Cr Supplies (to remove the portion used out of the asset account)
and Dr Supplies Expense (to transfer the portion used into the
expense account).
CORRECT
CORRECT