1) Describe the financial reporting environment inAustralia.2) Discuss what accounting is and the accounting...1)...

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Accounting

1) Describe the financial reporting environment inAustralia.
2) Discuss what accounting is and the accounting process.
3) Discuss the Conceptual Framework and the objective of financialreporting.
4) Discuss the main elements of each of the four main financialstatements.
5) Discuss the accounting equation, double entry principle, what isan account, rules for debiting and
crediting, chart of accounts and the accounting cycle.
6) Discuss the basic steps in the recording process, using thetransaction of Wong Ltd for the month
ended 31 October (attached). Your discussion and presentationshould include the following:
a) Analysis each transaction in terms of its effect on theaccounts.
b) Recording of each transaction information in a journal.
c) Transferring (posting) the journal information to theappropriate accounts in the ledger.
d) Preparation of a trial balance (from account balances in thegeneral ledger).
Wong Pty Ltd
The following transactions are for it’s first month ofoperation, October.
(1) Issues shares for cash. On 1 October Wong Pty Ltd issues sharesin exchange for $10 000 cash.
(2) Borrows money from a bank. On 1 October Wong Pty Ltd borrows$5000 from the ANZ Bank.
(3) Purchase of office equipment for cash. On 2 October Wong PtyLtd acquires office equipment by paying
$5000 cash to Superior Equipment Sales Ltd.
(4) Receipt of cash in advance from customer. On 2 October Wong PtyLtd receives a $1200 cash advance
from R. Knox, a client.
(5) Renders services for cash. On 3 October Wong Pty Ltd receives$10 000 in cash from Copa & Co. for
advertising services performed.
(6) Payment of rent in cash. On 3 October Wong Pty Ltd pays itsoffice rent for the month of October in cash,
$900.
(7) Payment of insurance in cash. On 4 October Wong Pty Ltd pays$600 for a 1-year insurance policy that will
expire next year on 30 September.
(8) Purchase of supplies on credit. On 5 October Wong Pty Ltdpurchases an estimated 3-month supply of
advertising materials on account from Aero Supply for $2500.
(9) Hiring of new employees. On 9 October Wong Pty Ltd hires fournew employees to begin work on 15
October. Each employee is to receive a weekly salary of $500 for a5-day working week, payable every 2 weeks.
Employees are to receive their first pay on 26 October.
(11) Payment of cash for employee salaries. Employees have worked 2weeks, earning $4000 in salaries,
which are paid on 26 October.
The following transactions are for it’s first month ofoperation, October.
(1) Issues shares for cash. On 1 October Wong Pty Ltd issues sharesin exchange for $10 000 cash.
(2) Borrows money from a bank. On 1 October Wong Pty Ltd borrows$5000 from the ANZ Bank.
(3) Purchase of office equipment for cash. On 2 October Wong PtyLtd acquires office equipment by paying
$5000 cash to Superior Equipment Sales Ltd.
(4) Receipt of cash in advance from customer. On 2 October Wong PtyLtd receives a $1200 cash advance
from R. Knox, a client.
(5) Renders services for cash. On 3 October Wong Pty Ltd receives$10 000 in cash from Copa & Co. for
advertising services performed.
(6) Payment of rent in cash. On 3 October Wong Pty Ltd pays itsoffice rent for the month of October in cash,
$900.
(7) Payment of insurance in cash. On 4 October Wong Pty Ltd pays$600 for a 1-year insurance policy that will
expire next year on 30 September.
(8) Purchase of supplies on credit. On 5 October Wong Pty Ltdpurchases an estimated 3-month supply of
advertising materials on account from Aero Supply for $2500.
(9) Hiring of new employees. On 9 October Wong Pty Ltd hires fournew employees to begin work on 15
October. Each employee is to receive a weekly salary of $500 for a5-day working week, payable every 2 weeks.
Employees are to receive their first pay on 26 October.
(11) Payment of cash for employee salaries. Employees have worked 2weeks, earning $4000 in salaries,
which are paid on 26 October.

Answer & Explanation Solved by verified expert

3.7 Ratings (502 Votes)

1 Financila reporting environment in Australian 1 Business in astralia may be required to report to Australian taxasion officethe Australian Securities and Investments Commission ASIC or the Australian Securities Exchange ASX 2 The same reporting standard are applicable for all astralian state 3This accounting standards are set by Australian Accounting Standards Boardthey are applied to private as well as public sector Atrealian accounting standars meets the requirment of internationalFinancial Reporting Standards 4 Companies operating in australia are required to prepare and lodge financial statement or reports with Astralian Securities and Investments Commissionat the time of financial year end 5financial report should be audited but in some cases there is exemption 2 Accounting and the accounting See Answer

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In: Accounting1) Describe the financial reporting environment inAustralia.2) Discuss what accounting is and the accounting...1) Describe the financial reporting environment inAustralia.2) Discuss what accounting is and the accounting process.3) Discuss the Conceptual Framework and the objective of financialreporting.4) Discuss the main elements of each of the four main financialstatements.5) Discuss the accounting equation, double entry principle, what isan account, rules for debiting andcrediting, chart of accounts and the accounting cycle.6) Discuss the basic steps in the recording process, using thetransaction of Wong Ltd for the monthended 31 October (attached). Your discussion and presentationshould include the following:a) Analysis each transaction in terms of its effect on theaccounts.b) Recording of each transaction information in a journal.c) Transferring (posting) the journal information to theappropriate accounts in the ledger.d) Preparation of a trial balance (from account balances in thegeneral ledger).Wong Pty LtdThe following transactions are for it’s first month ofoperation, October.(1) Issues shares for cash. On 1 October Wong Pty Ltd issues sharesin exchange for $10 000 cash.(2) Borrows money from a bank. On 1 October Wong Pty Ltd borrows$5000 from the ANZ Bank.(3) Purchase of office equipment for cash. On 2 October Wong PtyLtd acquires office equipment by paying$5000 cash to Superior Equipment Sales Ltd.(4) Receipt of cash in advance from customer. On 2 October Wong PtyLtd receives a $1200 cash advancefrom R. Knox, a client.(5) Renders services for cash. On 3 October Wong Pty Ltd receives$10 000 in cash from Copa & Co. foradvertising services performed.(6) Payment of rent in cash. On 3 October Wong Pty Ltd pays itsoffice rent for the month of October in cash,$900.(7) Payment of insurance in cash. On 4 October Wong Pty Ltd pays$600 for a 1-year insurance policy that willexpire next year on 30 September.(8) Purchase of supplies on credit. On 5 October Wong Pty Ltdpurchases an estimated 3-month supply ofadvertising materials on account from Aero Supply for $2500.(9) Hiring of new employees. On 9 October Wong Pty Ltd hires fournew employees to begin work on 15October. Each employee is to receive a weekly salary of $500 for a5-day working week, payable every 2 weeks.Employees are to receive their first pay on 26 October.(11) Payment of cash for employee salaries. Employees have worked 2weeks, earning $4000 in salaries,which are paid on 26 October.The following transactions are for it’s first month ofoperation, October.(1) Issues shares for cash. On 1 October Wong Pty Ltd issues sharesin exchange for $10 000 cash.(2) Borrows money from a bank. On 1 October Wong Pty Ltd borrows$5000 from the ANZ Bank.(3) Purchase of office equipment for cash. On 2 October Wong PtyLtd acquires office equipment by paying$5000 cash to Superior Equipment Sales Ltd.(4) Receipt of cash in advance from customer. On 2 October Wong PtyLtd receives a $1200 cash advancefrom R. Knox, a client.(5) Renders services for cash. On 3 October Wong Pty Ltd receives$10 000 in cash from Copa & Co. foradvertising services performed.(6) Payment of rent in cash. On 3 October Wong Pty Ltd pays itsoffice rent for the month of October in cash,$900.(7) Payment of insurance in cash. On 4 October Wong Pty Ltd pays$600 for a 1-year insurance policy that willexpire next year on 30 September.(8) Purchase of supplies on credit. On 5 October Wong Pty Ltdpurchases an estimated 3-month supply ofadvertising materials on account from Aero Supply for $2500.(9) Hiring of new employees. On 9 October Wong Pty Ltd hires fournew employees to begin work on 15October. Each employee is to receive a weekly salary of $500 for a5-day working week, payable every 2 weeks.Employees are to receive their first pay on 26 October.(11) Payment of cash for employee salaries. Employees have worked 2weeks, earning $4000 in salaries,which are paid on 26 October.