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ACC1701 Tutorial 1 Solutions 2023

The document provides a tutorial answer solution for ACC1701, detailing the accounting equation effects, journal entries, T-accounts, and trial balance for XBird Inc. as of December 31, 2023. It includes calculations for assets, liabilities, and equity, along with specific entries for cash, accounts receivable, inventory, and various expenses. The final section summarizes the total liabilities, total assets, and debt ratio.

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65 views4 pages

ACC1701 Tutorial 1 Solutions 2023

The document provides a tutorial answer solution for ACC1701, detailing the accounting equation effects, journal entries, T-accounts, and trial balance for XBird Inc. as of December 31, 2023. It includes calculations for assets, liabilities, and equity, along with specific entries for cash, accounts receivable, inventory, and various expenses. The final section summarizes the total liabilities, total assets, and debt ratio.

Uploaded by

joykwokll
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

ACC1701: ACCOUNTING FOR DECISION MAKERS

SEMESTER 1 2023 / 2024

TUTORIAL 1 ANSWER SOLUTION


Analytical Cumulative Case – XBird Inc.

(Refer also to excel solution file on Canvas)


Part (1)

Accounting Equation Effects


Assets = Liabilities + Equity
Balance @ 30 Sept 2023 215,000 = 69,000 + 146,000
+100,00
(a) 0 = 0 + +100,000
(b) +65,000 = 0 + +65,000
-40,000 = 0 + -40,000
(c) +35,000 = +20,000 + 0
-15,000 = 0 + 0
(d) +76,000 = 0 + 0
-76,000 = 0 + 0
(e) -8,400 = 0 + -8,400
(f) -16,500 = -16,500 + 0
(g) +5,000 = 0 + 0
-5,000 = 0 + 0
(h) -800 = 0 + -800
Balance @ 31 Dec 2023 334,300 = 72,500 + 261,800

AY2324 Sem1: ACC1701 Tutorial 1 Answer Solution Page 1 of 4


Part (2)

Journal Entries Debit Credit

(a) Cash 100,000


Share Capital 100,000

(b) Accounts Receivable 65,000


Sales Revenue 65,000

Cost of Good Sold 40,000


Inventory 40,000

(c) Inventory 35,000


Cash 15,000
Accounts Payable 20,000

(d) Cash 76,000


Accounts Receivable 76,000

(e) Salaries Expense 8,400


Cash 8,400

(f) Accounts Payable 16,500


Cash 16,500

(g) Equipment (PPE) 5,000


Cash 5,000

(h) Marketing Expense 800


Cash 800

346,700 346,700

AY2324 Sem1: ACC1701 Tutorial 1 Answer Solution Page 2 of 4


Part (3)
T-Accounts
Asset Accounts Liabilities Accounts Equity Accounts
Cash Accounts Payable Share Capital
Beg 28,000 Beg 19,000 Beg 100,000
(a) 100,000 (c) 15,000 (f) 16,500 (c) 20,000 (a) 100,000
(d) 76,000 (e) 8,400
(f) 16,500 End 22,500 End 200,000
(g) 5,000
(h) 800 Long-term Debt Retained Earnings
End 158,300 Beg 50,000 Beg 14,000
End 50,000 End 14,000
Accounts Receivable
Beg 24,000
(b) 65,000 (d) 76,000 Sales
Beg 170,000
End 13,000 (b) 65,000

Prepaid Rent End 235,000


Beg 9,000
End 9,000 Cost of Goods Sold
Beg 96,000
Inventory (b) 40,000
Beg 84,000
(c) 35,000 (b) 40,000 End 136,000

End 79,000 Rent Expense


Beg 8,000
Property, Plant & Equipment (PPE) End 8,000
Beg 80,000
(g) 5,000 Marketing Expense
Beg 2,925
End 85,000 (h) 800

Accumulated Depreciation End 3,725


Beg 10,000
End 10,000 Salaries Expense
Beg 22,500
(e) 8,400

End 30,900

General Admin Expense


Beg 3,700
End 3,700

Interest Expense
Beg 4,875
End 4,875

AY2324 Sem1: ACC1701 Tutorial 1 Answer Solution Page 3 of 4


Part (4)

Trial Balance
(As at 31 December 2023) Debit Credit
Cash 158,300
Accounts Receivable 13,000
Prepaid Rent 9,000
Inventory 79,000
Property, Plant & Equipment (PPE) 85,000
Accumulated Depreciation 10,000
Accounts Payable 22,500
Long-term Debt 50,000
Share Capital 200,000
Retained Earnings 14,000
Sales 235,000
Cost of Goods Sold 136,000
Rent Expense 8,000
Marketing Expense 3,725
Salaries Expense 30,900
General Admin Expense 3,700
Interest Expense 4,875
531,500 531,500

Part (5)

Total Liabilities 72,500


Total Assets 334,300
Debt Ratio 0.217

~ End of Tutorial Solution ~

AY2324 Sem1: ACC1701 Tutorial 1 Answer Solution Page 4 of 4

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