ACCT6007 FINANCIAL ACCOUNTING THEORY AND PRACTICE

Critical Analysis

Context: This assessment helps students to develop research and critical thinking skills applied to the accounting field. Changes in technology are impacting accounting and how accountants perform their jobs. Is it a threat or an opportunity for accounting profession? AI and blockchain are few examples. The students will be required to critically analyze given article and conduct further individual research to explore new trends and use of technology in the accounting field. Instructions: Download and critically analyze the academic article below written by Daniel Hood. Research and use additional articles and reliable resources to support your analysis and address all the tasks given. Hood, D. (2018), Brace yourself for AI & blockchain: There’s less threat and more opportunity in emerging technologies than many think Accounting Today. Vol. 32 No. 1, p1- 31.3p, Database: Business Source Ultimate http://ezproxy.laureate.net.au/login?url=https://search-proquestcom.ezproxy.laureate.net.au/docview/2002002485?accountid=176901

You may use an essay format or any other acceptable academic format for critical review. Use APA referencing style guide. Use minimum 10 academic references.

Task 1 Research and explore what is Artificial intelligence (AI) and Blockchain. Critically analyze how are they currently used in accounting and what is their potential future in the field.

Task 2 Based on the article and additional research, discuss in detail in a real-life scenario how AI and Blockchain can be used to advance the work of an accountant or an accounting function within an organization.

Task 3 Critically evaluate any arguments made by the author Daniel Hood in the reference article above. Do you agree or disagree? Explain your point of view and provide evidence in support of your point of view.

Task 4 Comment on how is financial reporting regulation likely to change in the future with advancement in technologies in accounting. Useful Academic skills resources: Analyzing the Brief, Essay Writing, and Critical Thinking These resources can be downloaded from LASU - Learning and Academic Skills Unit on Blackboard following the link: https://laureateau.blackboard.com/webapps/blackboard/content/listContent.jsp?course_id=_20163 _1&content_id=_2498849_1

Payroll Accounting

Continuing Payroll Project: Wayland Custom Woodworking

Wayland Custom Woodworking is a firm that manufactures custom cabinets and woodwork for business and residential customers. Students will have the opportunity to establish payroll records and to complete a month of payroll information for Wayland. Wayland Custom Woodworking is located at 1716 Nichol Street, Logan, Utah, 84321, phone number 435-555-9877. The owner is Mark Wayland. Wayland’s EIN is 91-7444533, and the Utah Employer Account Number is 999-9290-1. Wayland has determined it will pay their employees on a semimonthly basis. Federal income tax should be computed using the percentage method.

ACCT20073 Term 2 2020

Assessment task 2: Part A Assignment

Objectives

This assessment item relates to learning outcomes1 to 3.

Details and instructions

This is the first part of assessment task 2. You can choose to do Part A either as an individual or you can pair up with another student who is currently enrolled in the unit.

Academic Learning Centre

To ensure you understand the questions, instructions and expectations, it is highly recommended to seek help and guidance from the Academic Learning Centre (ALC). The ALC can help you with your writing skills and check your narrative answers for grammatical correctness and that your arguments and explanations are clear and logical. The ALC will also help you to ensure that you have actually answered the questions.

Formatting

Please be mindful that assignments are marked in electronic format. To assist with making the marking process efficient, effective and not time-consuming, you must comply with the following formatting requirements:

• Font: Times New Roman, 12-point, 1.5 line spacing
• Document type: Your answer for all questions must be in Word format. This will allow the marker to use track-changes to indicate where you received marks. Please do not submit a pdf document as this will not be marked. Also, please do not submit an excel file for your figures and calculations or copy and paste a table from an excel spreadsheet for any calculations into your Word document. Use the “insert table” function within Word and type all figures into the table. Show all calculations below the table. Ensure the marker will be able to use the track-changes function in Word to indicate in your table where you received or lost marks for your figures.
• Page: Portrait orientation
• Footer: Your full name(s) and student ID(s), page number and number of pages (e.g. Cat Bird s0123456, page 1 of 3)
• Marking criteria sheet: Ensure you type in your name(s) and student ID(s) in the marking criteria sheet and ensure it is the first page of your submitted assignment.
• File saving convention: Include your student name(s) in the name of the file when you save the document, and ensure that you include the appropriate .doc or .docx at the end. For example, save your file as: Cat Bird.docx

Plagiarism

Work submitted by a student that is the work of another person with no referencing or acknowledgement, is considered to be plagiarism. Turnitin will compare the similarities of your assignment when you submit it on Moodle. If the Turnitin score is high, your assignment will be investigated for possible plagiarism. Such investigation may take a considerable amount of time and hence your assignment will not be returned within the expected timeframe. Furthermore, if there is evidence of plagiarism, a Plagiarism Incident Report (PIR) will be lodged. You will then receive notification from the University with details of the necessary course of action.

You can check the Turnitin score of your assignment when submitting it. Please note: if you choose to redo and resubmit your assignment in the hope of reducing the Turnitin score, it will take 24 hours before Turnitin will give you another score. Also, be aware that the Turnitin scores keep on changing as and when more students submit their assignments. Consequently, as similarities between assignments increase, the Turnitin score of your assignment that the UC will get in Moodle may be different as to the score you received initially. It is therefore possible that your assignment may be investigated for plagiarism even though you may believe that your Turnitin score is low. To avoid any concern, anxiety and stress about the Turnitin score, do your own work.

Submission requirements

You must submit your assignment electronically through the secure upload facility in the Moodle system. Please follow the formatting requirement. Please ensure that the marking criteria sheet (page 5 of this document) is the first page of your assignment and that you completed the required information. If you do the assignment in a pair, only upload the file once in one student’s Moodle account. The marked assignment will be returned to that student’s account. Therefore, please contact the student who uploaded the pair file to get a copy of the marked assignment.

Be mindful that there is a 5% penalty per day for late submission. You will be penalised immediately with a full day’s penalty if you submit your assignment after the due time, even though you may only be a few hours late. The penalty is not proportioned to the number of hours you submit your assignment late.

Assignment Questions

Question 1:

‘X’ Ltd. purchased two new machines for cash on 1 January 2018. Machine A cost $4000 and Machine B cost $10000. Each machine was expected to have a useful life of 10 years, and residual values were estimated at $200 for Machine A and $500 for Machine B.

On 30 June 2019, ‘X’ Ltd. adopted the revaluation model to account for the class of machinery. The fair values of Machine A and Machine B were determined to be $3200 and $9000 respectively on that date. The useful life and residual value of Machine A were reassessed to 8 years and $150. The useful life and residual value of Machine B were reassessed to 8 years and $400.

On 2 January 2020, extensive repairs were carried out on Machine B for $6600 cash. ‘X’ Ltd. expected these repairs to extend Machine B’s useful life by 3.5 years, and its revised Machine B’s estimated residual value to $945.

‘X’ Ltd. decided to replace Machine A. It traded in Machine A on 31 March 2020 for new Machine C, which cost $6400. A $2800 trade-in was allowed for Machine A, and the balance of Machine C’s cost was paid in cash. Transport and installation costs of $95 were incurred in respect to Machine C. Machine C was expected to have a useful life of 8 years and a residual value of $800.

‘X’ Ltd. uses the straight-line depreciation method, recording depreciation to the nearest month and the nearest dollar. The end of its reporting period is 30 June.

On 30 June 2020, fair values were determined to be $14000 and $6500 for Machines B and C respectively.

Required:

Prepare general journal entries to record the above transactions and the depreciation journal entries required at the end of each reporting period up to 30 June 2020. Please show all the required calculations as note at the end of your answer.

Reference:  Loftus, J., Leo, K.J., Daniluc, S., Boys, N., Luke, B., Ang, H.N., & Byrnes, K. (2019), Financial Reporting, 3^rd End, John Wiley & Sons, Milton, Queensland, Australia.

Question 2:

‘X’ Ltd anticipated that its assets may be impaired in June 2020. Land is measured by ‘X’ Ltd at fair value. At 30 June 2020, the entity revalued the land to its fair value of $12 000. The land had previously been revalued upwards by $2 000. As a result of its impairment testing, ‘X’ Ltd calculated that the recoverable amount of the entity’s assets was $145 600. The carrying amounts of the assets of ‘X’ Ltd prior to adjusting for the impairment test and the revaluation of the land were as follows.

Required:

1.  Prepare the journal entries required on 30 June 2020 in relation to the measurement of the assets of ‘X’ Ltd.
2. Assume that, as the result of the allocation of the impairment loss, the plant and equipment was written down to $256 000. If the fair value less costs of disposal of the plant and equipment was determined to be $240 000, outline the adjustments, if any, that would need to be made to the journal entries you prepared in part 1 of this question, and explain why adjustments are or are not required. 

Reference:  Loftus, J., Leo, K.J., Daniluc, S., Boys, N., Luke, B., Ang, H.N., & Byrnes, K. (2019), Financial Reporting, 3^rd End, John Wiley & Sons, Milton, Queensland, Australia.