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ACT102 S1 2018 Assignment Task: This is an individual assignment in which you are required to form a business and answer some accounting related questions. Value: 20% Due date: Week 10 (Sunday...

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ACT102

S1 2018

Assignment

Task: This is an individual assignment in which you are required to form a business and answer some accounting related questions.

Value: 20%

Due date: Week 10 (Sunday the 13th of May 2017 at 23.59pm Darwin time)

Length: Maximum of 2000 words.

Presentation: Online submission through Learnline.

Assessment Criteria:

This task will generally be assessed in terms of the following criteria:

1. Effectiveness of communication: readability, grammar, spelling, neatness, completeness and presentation.

2. Demonstrated competency and understanding: This will be evidenced by the student's ability to be dialectical in the discussion of contentious issues. The marker will pay attention to the accuracy of the content, coverage of relevant issues, structure of argument, English expressions, absence of plagiarism, concise writing style, and referencing style.

3. Evidence of research - This will be evidenced by the references used and the inclusion of a bibliography.

Assignment Requirements:

Answer the following questions:

1. You are required to form a business and to write a brief introduction about it (name, services or products, legal form, merchandising or manufacturing, retail or wholesale, size, industry, etc…)

2. In deciding on the legal form for your business, discuss the reasons for your choice.

3. Discuss the different financing options to set up your business and the reasons for your choice (s).

4. Briefly define the role of accounting as it relates to your business (your answer should include accounting information, users of information, accounting process, financial accounting and management accounting, etc...)

5. Develop a chart of accounts for your business.

6. Will there be a need to use special journals and/or subsidiary ledgers in your business. Discuss (whether your answer is yes or no).

7. As it relates to your business, when is it suitable to do the adjustment of the accounts and the closing and why.

8. Discuss the considerations that the management of your business would take into account in deciding on whether to distribute profits or to retain them in the business.

Please note that you will need to address these questions in a way that is specific, appropriate, and directly relevant to the business chosen. (I am not after general information. You will need to be specific and your answers should be relevant and suitable to the characteristics of the business you have chosen).

Submission of Assignments

• Assignments must be submitted by the due date.

• Failure to submit an assignment on or before the due date will result in an academic penalty of 5 % of the marks allocated for the assignment each day the assignment is overdue.

• All assignments must be submitted online. (Assignments submitted via email will not be accepted).

• Students should include their names and students’ numbers, clearly and without errors on the first page of the assignment.

• Assignment should be typed and submission file should be either word or pdf. All of your assignment should be on ONE file only.

• Your assignment file name should be your campus name followed by your student number only (example: WFD990040.doc). Use WFD for waterfront; SYDN for Sydney, MELB for Melbourne, and EXT for external.

Assignment Extensions

All requests for extensions must be in writing and received seven days before the due assignment submission date. All requests for extensions must be submitted as per instructions posted on Learnline (Refer to Learnline for more details).

Answered Same Day May 08, 2020 ACT102 Charles Darwin University

Solution

Aarti J answered on May 13 2020
145 Votes
Accounting
Course Name
Course Date
Student’s Name
Accounting – Business
Introduction
Business
The business that is being planned to be opened is ‘Needs’. Needs will be the business which will be a retail outlet which will cater to different basic needs of the target market. It will be a retail outlet which will be operating in the subu
s of Melbourne and other parts of Australia. It will be a retail outlet which will sell different products like grocery, vegetables, fruits, biscuits, washing powder, stationery items, and other daily needs items that are required in a household. As the company will be operating in different parts of the Australia, the company will be operating in a large scale and would be needing heavy financing.
Form of business
There are different forms of business which includes sole proprietorship, Partnership, and a corporation. As the business is being planned to operate on a large scale, we plan to list the company as a corporation. The form of business chosen will be corporation.
A Corporation is a company which will have a separate legal entity and is formed under the state of the laws. The corporation has to be listed in the stock market and is the publically listed company. The company floats the shares through Initial public offerings which can help the company to attract the investors for the company.
Some of the advantages of forming a corporation includes:
Being a corporation, the company will be having limited liability i.e. the company will only be liable to pay the amount which has been invested in it. The personal assets and the property are not at stake. With the public listed company, it is easy for the company to attract the capital as the capital can be raised with the help of issue of shares and issue of bonds.
Being a corporation, the company can transfer its ownership by transfe
ing its shares. The company also has unlimited life or we can say that the corporation adheres to the going concern principle and has perpetual life as the shares can be transfe
ed and the ownership stays with different investors. (Horngren, 2008)
Some of the major disadvantages of the corporation includes:
There are many formalities which the corporation needs to undergo in its formation. Apart from this the corporation also has double taxation i.e. the corporation has to pay double taxation i.e. it has to pay taxes on its income and the shareholder’s are also required to pay the taxes earned through the corporation.
There are certain underlines and the tax filling which the corporations are required to do. Apart from this the corporation also has independent management, as there are different investors and the management is usually by the investors who holds the majority stock of the company. Apart from this, the corporation is also required to have a board of directors and the investors who oversight the working of the corporation.
Financing options
There are two major forms through which the company can do its financing these includes financing through equity and financing through debt.
Equity financing:
One of the major sources of the capital of the company is through equity financing. Equity financing is the financing where the investors provide the capital to the company in exchange of the shares. They invest in the company in motive to earn profit.
Advantages:
Equity financing gives less burden to the company as there is no requirement for the repayment of the amount. The...
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