ACC201: After graduation, Peter decided to start a printing service company, PK Pte Ltd (PKL) with his good friend Kelvin: Financial Accounting Assignment, SUSS, Singapore

Question 1

After graduation, Peter decided to start a printing service company, PK Pte Ltd (PKL) with his good friend Kelvin. The following were the transactions for the month of March 20X8.

• 1-Mar A total of $200,000 was invested into the business by Peter and Kelvin.
• 1-Mar The company took a 5-year bank loan of $120,000 with interest of 5% to be paid annually on 31 December.
• 1-Mar The company paid $144,000 for the rental of the office for two years.
• 3-Mar A printing equipment manufacturer was interested in the company. $90,000 worth of printing equipment was supplied to the company in exchange for shares in the company.
• 6-Mar The company purchased $8,500 of office supplies on credit term.
• 8-Mar The printing equipment was delivered, and the company paid $300 for the transportation. Since the amount was immaterial, the company treated the transportation fee as an expense.
• 9-Mar A customer paid a deposit of $2,000 for the printing of his company brochures.
• 12-Mar The job received on 9 March was completed and the company invoiced the customer $7,000 for the remaining payment.
  

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• 17-Mar The company completed a printing job amounting to $9,900. The customer paid $3,000 and would pay the rest within one month.
• 21-Mar The company quoted for a job amounting to $11,000. The customer accepted the quotation, and the job would be done in April.
• 24-Mar The customer in transaction (9) paid $2,000 to the company.
• 25-Mar The company received a utility bill of $930 for the month of March
• 31-Mar The company employed a part-time worker, and he was paid weekly on every Friday based on work done at an hourly rate of $10/hr. For the last week of the month, the worker completed 35 hours of work from Monday to Thursday. Friday was 1 April.
• 31-Mar The company paid salaries for the month amounting to $19,200.
• 31-Mar The office supplies at the end of the month were $370.

Question 2

Define the following accounting concepts and explain each of their implications for the preparation of the financial statements.

• Entity concept
• Going concern
• Materiality
• Fair presentation