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BACT105 Assessment 3 – Individual Business Report

ASSESSMENT DESCRIPTION:

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:

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:
What is an accounting cycle? Is every company required to complete it?
Explain the purpose, content, format and practical applications of all the financial statements generated as a result of completing an accounting cycle?
What is the role of double entry system in the accounting cycle?
What is the role of ethics while an accounting cycle is being completed?
What support does the financial information generated by completing an accounting cycle provides to the management in their decision making?
Provide a recommendation whether using perpetual inventory system (currently being used) will be ideal for the

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.