Individual Assignment

AF2111, Accounting for Decision Making

Chapter 5 –Individual Assignment

The following questions are for tutorial discussion in Week 6.

Students should submit their work on or before March 3 Friday 17:00 to the envelopes (labelled according to tutorial class time) outside your tutor’s office.  No assessment will be provided after the due date. Students will get back the assignments during the tutorial class.  

Please put down your name, student ID, tutorial class time, your class number (sequence number next to your name in the class register) on the assignment.

Each student is expected to work on at least ONE of the questions outlined. If you want more practices, please refer to the practice assignment listed on page 8 & 9 of the subject outline, all the questions can be found in the text book.  Answers to P5.5B have been uploaded onto blackboard, as a demonstration on how to tackle the questions.

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Guidance on problem 5.5A

1. Note 1 & note 2:                Gross sales 911k, less returns 28k, less discounts 18k; net sales = 865k
2. Note 1:                Freight out expense = 33k
3. Note 2:         Rent revenue of 4 k is non-operating as the company is not operating as a landlord.
4. Note 3 & 4:                Sales commission paid and sales commission to be paid (already earned by salespersons) = sales commission expense = 9k.  This company treats both salaries & commissions as “Salaries & Wages Expense” =   80k + 9k + 47k
5. Note 4:         Rent expense, after excluding prepayment (not yet enjoyed) = 18k

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