i have an assignment of financial aacounting and it has 2 questions in 2 parts and one part has to be done in quickbooks.

STUDENT NAME(S) STUDENT NO.(S) (PLEASE UNDERLINE YOUR FAMILY NAME ) FOR GROUP ASSIGNMENTS, WRITE THE GROUP LEADER'S NAME FIRST. QUT BUSINESS SCHOOL / SCHOOL OF ACCOUNTANCY ASSIGNMENT COVER SHEET THIS FORM MUST BE COMPLETED FOR ALL ASSIGNMENTS WHETHER LODGED THROUGH ASSIGNMENT MINDER OF LODGED ELECTRONICALLY Please ensure you KEEP A COPY of your assignment. Please refer to Week 1 Document or information on the unit Blackboard site or advice from lecturers/tutors regarding return of assignments. Assignments may be returned via Assignment Minder, in class - lectures/tutorials/workshops, during consultation times or via other means as advised by the Unit Coordinator/Schools. Photographic identification will be returned. DATE RECEIVED (Office use only) CAMPUS - GARDENS POINT SCHOOL - ACCOUNTANCY UNIT NAME - FINANCIAL ACCOUNTING 1 DUE DATE - WEEK 10 - MONDAY 23RD SEPTEMBER BY 9AM - SUBMIT VIA BLACKBOARD (NO ASSIGNMENT MINDER OR HARDCOPY SUBMISSION) UNIT CODE - AYN416 LECTURER'S/NAME - TIM HASSO SEMINAR TIME ASSIGNMENT NO. & DESCRIPTION/TOPIC -ASSIGNMENT DECLARATION: I declare that: This work is entirely my own, and no part of it has been copied from any other person's words or ideas, except as specifically acknowledged through the use of inverted commas and in-text references; No part of this assignment has been written for me by any other person except where such collaboration has been authorised by the Unit Coordinator concerned; I understand my assignment may be scanned as part of the assessment process, and that plagiarism detection software may be utlilised; This assignment has not been submitted for any other unit at QUT or any other institution, unless authorised by the relevant Unit Coordinator; I have read and abided by all of the requirements set down for this assignment. By electronically submitting this work I acknowledge that my signature is taken to be applied to this Statement SIGNATURE*........................................................................ DATE................................ * If this is a group assignment, only one signature is required The Unit Coordinator may exercise a right not to mark this assignment if the above declaration has not been signed. If the above declaration is found to be false, you may receive reduced or zero marks for this assignment, and you will be dealt with under QUT's Student Rule No. 29 - Academic Dishonesty, and the associated procedures for Academic Dishonesty which are available at: http://www.mopp.qut.edu.au/Appendix/append01cst.jsp and http://www.mopp.qut.edu.au/C/C_05_03.jsp 1 AYN416 Accounting Project (individual) Objectives: The objectives of this project are for students to demonstrate: 1. Skills and knowledge in the preparation of financial statements that comply with Generally Accepted Accounting Practice (Assurance of Learning Outcome KS 1.1) 2. Incorporating the use of a computerised accounting package ( Assurance of Learning Outcome KS 1.2) and This Accounting Project consists of completing the accounting cycle for a sole trading retail business for one month using both manual records and QuickBooks accounting software. Submission: The assignment must be submitted via blackboard no later than 9am on Monday the 23 rd of September 2013. You will find the assignment submission under the assessment section. Please upload your excel file, PDF files of reports generated from Quickbooks and also upload your Quickbooks file that has the extension .QBW. If your Quickbooks file has a password please enter it in the comments field when submitting the assignment. Penalties will apply for late submission of 10% per day after the due date. Requirements: The Assignment comprises two (2) compulsory parts - Part A and Part B. Each part has equal weighting (10%) and, in aggregate, contributes up to 20% of your overall AYN416 final mark/grade. Assessment Criteria The total assessment for this Assignment is based on Assurance of Learning Criteria and is worth 20% of the total marks for the semesters. The CRA sheet is provided at the end of this document. Part A - Compulsory (10% weighting) Part A requires you to complete the requirements set out in the Financial reporting problem practice set that follows. It is to be expected that you will demonstrate a comprehensive understanding of relevant concepts, principles and practice in the manual preparation and presentation of financial statements. Journal, ledger and work sheet proformas for this problem are available under the assignment folder in the assessment section on blackboard. The completed proformas for submission should be completed using the Excel template. 2 Part B - Compulsory (10% weighting) Part B requires you to complete the requirements set out in the Financial reporting problem practice set that follows. It is to be expected that you will demonstrate a comprehensive understanding of relevant concepts, principles and practice in the computerised preparation and presentation of financial statements using QuickBooks software. The QuickBooks User Guide, exercises and other supporting materials are available under the assignment and Topic 7 icons on blackboard site. Students are reminded to regularly check the Announcements section of the AYN 416 Blackboard site for updates and clarifications to the Accounting Project. 3 PART A BACKGROUND AND FACTS Kim Jones is the owner of a retail bicycle store located in Brisbane that she established 5 years ago. She operates the business as a sole trader. Kim submits her Business Activity Statements (GST Return) quarterly on an accruals basis. Kim is currently using a manual system to prepare her financial records. She has come to you to implement QuickBooks software. To ensure the accuracy of the software implementation, she has asked you to prepare both manual records and records in QuickBooks for the month ending 31 July, 2013. Chart of Accounts and Trial Balance as at 1 July, 2013 Account No. 101 110 112 115 Account Name Balance DR CR 83,360 Cash at Bank - N Accounts Receivable Inventory Prepaid Insurance 71,074 96,800 3,0 118 Office Supplies Inventory 40 130 Office Equipment 00 51,4 17,5 131 Accumulated Depreciation - Office Equipment 00 91,5 135 Computer Equipment 10 31,9 136 Accumulated Depreciation - Computer Equipment 00 200 Tax Payable (GST) 00 201 Accounts Payable 203 Wages Payable 46 205 PAYG Tax Payable 12 301 Capital 26 37,5 116,9 6,5 186,8 397,1 Total 302 307 401 402 405 501 503 505 506 84 Drawings Income Summary Sales Revenue Sales Returns & Allowances Interest Revenue Cost of Goods Sold Bank Charges Depreciation Expense - Computer Equipment Depreciation Expense - Office Equipment 4 397,1 84 510 520 542 560 580 585 Entertainment Expense Insurance Expense Office Supplies Expense Rent Expense Telephone and Internet Expense Wages Expense Accounts Receivable Subsidiary Ledger as at 1 July 44,2 Be True Cycle Club 78 Staple Training 96 WorthMore Fitness 00 6,8 19,9 71,0 Total 74 Accounts Payable Subsidiary Ledger as at 1 July 9,04 Advanced Computers 0 Cyclops 6 Premium Accountants 0 Repco 0 41,20 9,90 56,80 116,94 Total 6 Kims Bikes sells three types of inventory and uses a perpetual Inventory Balances as at 1 Julyinventory system. The stock take at 30 June showed: Item Description Units on Hand Unit Cost (excl GST) $ 80 0 1,20 0 30 0 Ladies bicycle 40 Mens bicycle 50 Childrens bicycle 16 Total Value (excl GST) $ Unit Selling Price (excl GST) $ 32,000 1,600 60,000 2,400 4,800 96,800 600 Accounting Information The business uses the following specialised journals to record its business transactions: A Sales Journal is used to record the sale of inventory on credit during the month. A Cash Receipts Journal is used to record all cash received. A Cash Payments Journal is used to record all cash paid. 5 A Purchases Journal is used to record all purchases of inventory on credit. A General Journal is used to record all other transactions. All invoices received for expenses incurred and owing are recorded in the general journal at the time of receiving the invoice. (Narrations are not required for general journal transactions.) The business uses a general ledger, an accounts receivable subsidiary ledger and an accounts payable subsidiary ledger. The 4 column running balance form of ledger account is used. The business does use a Sales Returns and Allowances account in the current manual system to record sales returns from customers. Note that there is no ability in our Quickbooks student version software to record Sales Returns separately. Instead the software will process a sales return as a reduction from Sales Revenue. NOTE: There is an extra column in the ledger accounts to make a note of source document numbers etc. We do not have such information so you may leave this column blank. Financial statements are prepared at the end of each month. The accounts are also closed off at the end of each month. All necessary pro-formas are available on the Blackboard site and are to be used to complete the manual accounting practice set. Quick Books software is to be used to prepare computerised records in Part B to ensure they agree. 6 The business transactions that occurred in July 2013 are as follows: 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. July 1 Sold 3 mens bicycles, 3 ladies bicycles and 3 children's bicycles as a cash sale for $15,180 ($13,800 plus $1,380 GST), receipt number C324. July 1 Paid $154 for client entertainment, cheque number 85 ($140 plus GST $14). July 1 Paid rent for July of $3,080 cheque number 86 ($2,800 plus GST $280). July 1 Paid for prepaid insurance of $1,782 for 12 months effective 1 July (1,620 plus GST $162) with cheque number 87. July 1 Purchased a computer on credit from Advanced Computers for $5,610 ($5,100 plus GST $510). July 2 Kim withdrew $2,000 cash for her personal use with cheque number 88. (no GST applicable) July 4 Sold 15 ladies bicycles on credit to Be True Cycle Club, invoice number F408 $26,400 ($24,000 plus GST $2,400). July 6 Purchased office supplies with cheque number 89 for $440 ($400 plus GST $40) July 8 Paid Cyclops $36,800 with cheque number 90 as part payment of prior month expenditure. July 9 Received $40,000 from Be True Cycle Club as payment on account. July 12 Paid the monthly telephone and internet expense with cheque number 91 for $396 ($360 plus GST $36). July 15 Purchased 10 ladies bicycles on credit from Repco $ 8,800 ($8,000 plus GST $800). July 16 Issued a credit note to Be True Cycle Club for return of 3 ladies bicycles, Credit Number 26 $5,280 ($4,800 plus GST $480). July 19 Received $19,000 from WorthMore Fitness as payment on account. July 20 Returned 2 ladies bicycles to Repco and received a credit of $ 1,760 ($1,600 plus GST $160). July 26 Paid monthly net staff wages of $8,050 with cheque number 92 (no GST is applicable.) July 27 Paid Advanced Computers a part payment of $8,000, cheque number 93. July 28 Sold 18 mens bicycles on credit to Staple Training, invoice number F409 $47,520 ($43,200 plus GST $4,320). July 29 Kim lodged her quarterly Business Activity Statement (BAS return) and paid cheque number 94 to the ATO for a total of $22,006. This represented the June quarter net GST payable of $18,750 and also the previous month PAYG tax payable of $3,256 (record each transaction on a separate line). July 29 Purchased 15 mens bicycles on credit from Cyclops $ 19,800 ($18,000 plus GST $1800). July 31 Record a general journal entry for $2,099 for the total PAYG tax withheld on the monthly wages. (Debit wages expense and credit PAYG Tax Payable). July 31 Bank statement: Received interest income of $61. (no GST applicable) July 31 Bank Statement: Bank charges of $15 (no GST applicable) 7 Part A Instructions (1 - 8) 1) Enter the opening balances at 1 July into the general ledger and subsidiary accounts. 2) Record the July transactions in the following journals: cash payments, cash receipts, purchases, sales and the general journal. 3) Post daily to the subsidiary ledgers. Post daily from the general journal. Post the monthly totals of the special journals to the general ledger. Include posting references in the journals. 4) Prepare a trial balance as at 31 July 2013, in the trial balance columns of the worksheet. 5) Complete the worksheet using the additional information below on required adjusting entries: A) Accrued Wages Wages owing as at 31 July are $380. B ) Insurance Noted in the transactions above, Kim prepaid 12 months of insurance on July 1. C ) Depreciation - Office Equipment Annual Depreciation on Office Equipment has been calculated at $6,424. D ) Depreciation - Computers Annual Depreciation on Computers has been calculated at $117,500. E) Office Supplies Expense On 31 July, Kim performed a stocktake of her office supplies and noted that there was $1,450 of supplies remaining. 6) Prepare and post adjusting and closing entries. 7) Prepare the following statements for month ended 31 July in accordance with AASB 101: - a classified income statement - a statement of changes in equity and - a classified statement of financial position. Note that there is a need to split Sales and Sales Returns separately in the manual system as discussed earlier. For the purposes of expense classification, please use the following information: Selling Expenses: Entertainment Expense Wages Administrative Expenses: Depreciation - Computer Equipment, Depreciation - Office Equipment, Insurance Expense, Office Supplies Expense, Rent Expense, Telephone and Internet Expense Finance Expenses: Bank Charges 8) Prepare a post-closing trial balance, and determine whether the subsidiary ledgers agree with the control accounts in the general ledger. 8 PART B QUICKBOOKS PRACTICE SET - KIMS BIKES Quick Books software is to be used to prepare computerised records in Part B to ensure they agree to the manual records. Part B Instructions (1 - 10) 1) Establish a new data base in QuickBooks. In the interview process, choose the Preferences below: Field Select Then What do you sell? Products only Click Next Do you track tax? Yes Click Next Do you want to create estimates in QuickBooks? No Click Next Do you want to track sales orders before you tax invoice your customers? No Click Next Do you want to use sales receipts in QuickBooks? Yes Click Next Do you want to use billing statements in QuickBooks? No Click Next Do you want to use invoices in QuickBooks? Yes Click Next Do you want to use progress invoicing? No Click Next Do you want to keep track of the bills you owe? Yes Click Next Do you want to track inventory in QuickBooks? Yes Click Next Do you want to track time in QuickBooks? No Click Next Do you have employees? No Click Next twice Select a start date to start tracking your finances Accept 01/07/2013 Click Next Would you like to add an existing bank account? Yes Click Next Key in AUSPAC Bank Account for the name of the bank account Click on or after 01/07/2013 to select. Click Next three times 2) Set up lists and Opening Balances for Inventory, Customers and Suppliers as at 1 July. (Addresses are not required for this project for customers or suppliers). 3) Enter opening balances for all other accounts as at 1 July. 9 4) Run a trial balance as at 1 July to ensure all opening balances are accurately entered. Process a general journal entry to correct the items in the trial balance which require adjustment including Uncategorised income, Uncategorised expenses and Opening Balance (equity). 5) Set up preferences for banking for all receipts and payments to process to the AUSPAC Bank Account. 6) Record the July transactions in QuickBooks, opening new accounts as necessary. Tips: GST codes: where payments have GST included, use the tax code NCG for expenses and CAG for the purchase of the computer. Bank Accounts: Check each receipt and payment is processed to the AUSPAC bank account). Dates: ensure that dates are entered correctly in the month of July. 7) Prepare a trial balance as at 31 July and ensure it agrees to the unadjusted manual trial balance prepared in Part A. 8) Process the adjusting entries above in QuickBooks. 9) Print the following reports from QuickBooks as at 31 July: - Profit and Loss (Standard) - Balance Sheet (Standard) - Trial Balance - Inventory Valuation Summary - Customer Balance Detail - Supplier Balance Detail 10) Ensure all reports agree with manual reports generated in Part A (no bank reconciliation is required in part A or Part B). 10 AYN416 FINANCIAL ACCOUNTING 1 - ASSIGNMENT CRITERIA SHEET Student Name: .......................................................... Student No.: ................... Student Name: .......................................................... Student No.: ................... Part A -Manual Practice Set (10% weighting) Criteria 85% ) Demonstrated a comprehensive understanding of relevant concepts, principles and practices. 5 - 7 errors 2- 4 errors Mark 1 or less errors / 10 10 5 Demonstrated competence in the use of accounting software and summarising results. 6 Demonstrated proficiency in the use of accounting software and summarising results. 7 Demonstrated high proficiency in the use of accounting software and summarising results. 5 - 7 errors 2- 4 errors 1 or less errors (20% weighting) Marks Mark / 10 STUDENT NAME(S) STUDENT NO.(S) (PLEASE UNDERLINE YOUR FAMILY NAME ) FOR GROUP ASSIGNMENTS, WRITE THE GROUP LEADER'S NAME FIRST. QUT BUSINESS SCHOOL / SCHOOL OF ACCOUNTANCY ASSIGNMENT COVER SHEET THIS FORM MUST BE COMPLETED FOR ALL ASSIGNMENTS WHETHER LODGED THROUGH ASSIGNMENT MINDER OF LODGED ELECTRONICALLY Please ensure you KEEP A COPY of your assignment. Please refer to Week 1 Document or information on the unit Blackboard site or advice from lecturers/tutors regarding return of assignments. Assignments may be returned via Assignment Minder, in class - lectures/tutorials/workshops, during consultation times or via other means as advised by the Unit Coordinator/Schools. Photographic identification will be returned. DATE RECEIVED (Office use only) CAMPUS - GARDENS POINT SCHOOL - ACCOUNTANCY UNIT NAME - FINANCIAL ACCOUNTING 1 DUE DATE - WEEK 10 - MONDAY 23RD SEPTEMBER BY 9AM - SUBMIT VIA BLACKBOARD (NO ASSIGNMENT MINDER OR HARDCOPY SUBMISSION) UNIT CODE - AYN416 LECTURER'S/NAME - TIM HASSO SEMINAR TIME ASSIGNMENT NO. & DESCRIPTION/TOPIC -ASSIGNMENT DECLARATION: I declare that: This work is entirely my own, and no part of it has been copied from any other person's words or ideas, except as specifically acknowledged through the use of inverted commas and in-text references; No part of this assignment has been written for me by any other person except where such collaboration has been authorised by the Unit Coordinator concerned; I understand my assignment may be scanned as part of the assessment process, and that plagiarism detection software may be utlilised; This assignment has not been submitted for any other unit at QUT or any other institution, unless authorised by the relevant Unit Coordinator; I have read and abided by all of the requirements set down for this assignment. By electronically submitting this work I acknowledge that my signature is taken to be applied to this Statement SIGNATURE*........................................................................ DATE................................ * If this is a group assignment, only one signature is required The Unit Coordinator may exercise a right not to mark this assignment if the above declaration has not been signed. If the above declaration is found to be false, you may receive reduced or zero marks for this assignment, and you will be dealt with under QUT's Student Rule No. 29 - Academic Dishonesty, and the associated procedures for Academic Dishonesty which are available at: http://www.mopp.qut.edu.au/Appendix/append01cst.jsp and http://www.mopp.qut.edu.au/C/C_05_03.jsp 1 AYN416 Accounting Project (individual) Objectives: The objectives of this project are for students to demonstrate: 1. Skills and knowledge in the preparation of financial statements that comply with Generally Accepted Accounting Practice (Assurance of Learning Outcome KS 1.1) 2. Incorporating the use of a computerised accounting package ( Assurance of Learning Outcome KS 1.2) and This Accounting Project consists of completing the accounting cycle for a sole trading retail business for one month using both manual records and QuickBooks accounting software. Submission: The assignment must be submitted via blackboard no later than 9am on Monday the 23 rd of September 2013. You will find the assignment submission under the assessment section. Please upload your excel file, PDF files of reports generated from Quickbooks and also upload your Quickbooks file that has the extension .QBW. If your Quickbooks file has a password please enter it in the comments field when submitting the assignment. Penalties will apply for late submission of 10% per day after the due date. Requirements: The Assignment comprises two (2) compulsory parts - Part A and Part B. Each part has equal weighting (10%) and, in aggregate, contributes up to 20% of your overall AYN416 final mark/grade. Assessment Criteria The total assessment for this Assignment is based on Assurance of Learning Criteria and is worth 20% of the total marks for the semesters. The CRA sheet is provided at the end of this document. Part A - Compulsory (10% weighting) Part A requires you to complete the requirements set out in the Financial reporting problem practice set that follows. It is to be expected that you will demonstrate a comprehensive understanding of relevant concepts, principles and practice in the manual preparation and presentation of financial statements. Journal, ledger and work sheet proformas for this problem are available under the assignment folder in the assessment section on blackboard. The completed proformas for submission should be completed using the Excel template. 2 Part B - Compulsory (10% weighting) Part B requires you to complete the requirements set out in the Financial reporting problem practice set that follows. It is to be expected that you will demonstrate a comprehensive understanding of relevant concepts, principles and practice in the computerised preparation and presentation of financial statements using QuickBooks software. The QuickBooks User Guide, exercises and other supporting materials are available under the assignment and Topic 7 icons on blackboard site. Students are reminded to regularly check the Announcements section of the AYN 416 Blackboard site for updates and clarifications to the Accounting Project. 3 PART A BACKGROUND AND FACTS Kim Jones is the owner of a retail bicycle store located in Brisbane that she established 5 years ago. She operates the business as a sole trader. Kim submits her Business Activity Statements (GST Return) quarterly on an accruals basis. Kim is currently using a manual system to prepare her financial records. She has come to you to implement QuickBooks software. To ensure the accuracy of the software implementation, she has asked you to prepare both manual records and records in QuickBooks for the month ending 31 July, 2013. Chart of Accounts and Trial Balance as at 1 July, 2013 Account No. 101 110 112 115 Account Name Balance DR CR 83,360 Cash at Bank - N Accounts Receivable Inventory Prepaid Insurance 71,074 96,800 3,0 118 Office Supplies Inventory 40 130 Office Equipment 00 51,4 17,5 131 Accumulated Depreciation - Office Equipment 00 91,5 135 Computer Equipment 10 31,9 136 Accumulated Depreciation - Computer Equipment 00 200 Tax Payable (GST) 00 201 Accounts Payable 203 Wages Payable 46 205 PAYG Tax Payable 12 301 Capital 26 37,5 116,9 6,5 186,8 397,1 Total 302 307 401 402 405 501 503 505 506 84 Drawings Income Summary Sales Revenue Sales Returns & Allowances Interest Revenue Cost of Goods Sold Bank Charges Depreciation Expense - Computer Equipment Depreciation Expense - Office Equipment 4 397,1 84 510 520 542 560 580 585 Entertainment Expense Insurance Expense Office Supplies Expense Rent Expense Telephone and Internet Expense Wages Expense Accounts Receivable Subsidiary Ledger as at 1 July 44,2 Be True Cycle Club 78 Staple Training 96 WorthMore Fitness 00 6,8 19,9 71,0 Total 74 Accounts Payable Subsidiary Ledger as at 1 July 9,04 Advanced Computers 0 Cyclops 6 Premium Accountants 0 Repco 0 41,20 9,90 56,80 116,94 Total 6 Kims Bikes sells three types of inventory and uses a perpetual Inventory Balances as at 1 Julyinventory system. The stock take at 30 June showed: Item Description Units on Hand Unit Cost (excl GST) $ 80 0 1,20 0 30 0 Ladies bicycle 40 Mens bicycle 50 Childrens bicycle 16 Total Value (excl GST) $ Unit Selling Price (excl GST) $ 32,000 1,600 60,000 2,400 4,800 96,800 600 Accounting Information The business uses the following specialised journals to record its business transactions: A Sales Journal is used to record the sale of inventory on credit during the month. A Cash Receipts Journal is used to record all cash received. A Cash Payments Journal is used to record all cash paid. 5 A Purchases Journal is used to record all purchases of inventory on credit. A General Journal is used to record all other transactions. All invoices received for expenses incurred and owing are recorded in the general journal at the time of receiving the invoice. (Narrations are not required for general journal transactions.) The business uses a general ledger, an accounts receivable subsidiary ledger and an accounts payable subsidiary ledger. The 4 column running balance form of ledger account is used. The business does use a Sales Returns and Allowances account in the current manual system to record sales returns from customers. Note that there is no ability in our Quickbooks student version software to record Sales Returns separately. Instead the software will process a sales return as a reduction from Sales Revenue. NOTE: There is an extra column in the ledger accounts to make a note of source document numbers etc. We do not have such information so you may leave this column blank. Financial statements are prepared at the end of each month. The accounts are also closed off at the end of each month. All necessary pro-formas are available on the Blackboard site and are to be used to complete the manual accounting practice set. Quick Books software is to be used to prepare computerised records in Part B to ensure they agree. 6 The business transactions that occurred in July 2013 are as follows: 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. July 1 Sold 3 mens bicycles, 3 ladies bicycles and 3 children's bicycles as a cash sale for $15,180 ($13,800 plus $1,380 GST), receipt number C324. July 1 Paid $154 for client entertainment, cheque number 85 ($140 plus GST $14). July 1 Paid rent for July of $3,080 cheque number 86 ($2,800 plus GST $280). July 1 Paid for prepaid insurance of $1,782 for 12 months effective 1 July (1,620 plus GST $162) with cheque number 87. July 1 Purchased a computer on credit from Advanced Computers for $5,610 ($5,100 plus GST $510). July 2 Kim withdrew $2,000 cash for her personal use with cheque number 88. (no GST applicable) July 4 Sold 15 ladies bicycles on credit to Be True Cycle Club, invoice number F408 $26,400 ($24,000 plus GST $2,400). July 6 Purchased office supplies with cheque number 89 for $440 ($400 plus GST $40) July 8 Paid Cyclops $36,800 with cheque number 90 as part payment of prior month expenditure. July 9 Received $40,000 from Be True Cycle Club as payment on account. July 12 Paid the monthly telephone and internet expense with cheque number 91 for $396 ($360 plus GST $36). July 15 Purchased 10 ladies bicycles on credit from Repco $ 8,800 ($8,000 plus GST $800). July 16 Issued a credit note to Be True Cycle Club for return of 3 ladies bicycles, Credit Number 26 $5,280 ($4,800 plus GST $480). July 19 Received $19,000 from WorthMore Fitness as payment on account. July 20 Returned 2 ladies bicycles to Repco and received a credit of $ 1,760 ($1,600 plus GST $160). July 26 Paid monthly net staff wages of $8,050 with cheque number 92 (no GST is applicable.) July 27 Paid Advanced Computers a part payment of $8,000, cheque number 93. July 28 Sold 18 mens bicycles on credit to Staple Training, invoice number F409 $47,520 ($43,200 plus GST $4,320). July 29 Kim lodged her quarterly Business Activity Statement (BAS return) and paid cheque number 94 to the ATO for a total of $22,006. This represented the June quarter net GST payable of $18,750 and also the previous month PAYG tax payable of $3,256 (record each transaction on a separate line). July 29 Purchased 15 mens bicycles on credit from Cyclops $ 19,800 ($18,000 plus GST $1800). July 31 Record a general journal entry for $2,099 for the total PAYG tax withheld on the monthly wages. (Debit wages expense and credit PAYG Tax Payable). July 31 Bank statement: Received interest income of $61. (no GST applicable) July 31 Bank Statement: Bank charges of $15 (no GST applicable) 7 Part A Instructions (1 - 8) 1) Enter the opening balances at 1 July into the general ledger and subsidiary accounts. 2) Record the July transactions in the following journals: cash payments, cash receipts, purchases, sales and the general journal. 3) Post daily to the subsidiary ledgers. Post daily from the general journal. Post the monthly totals of the special journals to the general ledger. Include posting references in the journals. 4) Prepare a trial balance as at 31 July 2013, in the trial balance columns of the worksheet. 5) Complete the worksheet using the additional information below on required adjusting entries: A) Accrued Wages Wages owing as at 31 July are $380. B ) Insurance Noted in the transactions above, Kim prepaid 12 months of insurance on July 1. C ) Depreciation - Office Equipment Annual Depreciation on Office Equipment has been calculated at $6,424. D ) Depreciation - Computers Annual Depreciation on Computers has been calculated at $117,500. E) Office Supplies Expense On 31 July, Kim performed a stocktake of her office supplies and noted that there was $1,450 of supplies remaining. 6) Prepare and post adjusting and closing entries. 7) Prepare the following statements for month ended 31 July in accordance with AASB 101: - a classified income statement - a statement of changes in equity and - a classified statement of financial position. Note that there is a need to split Sales and Sales Returns separately in the manual system as discussed earlier. For the purposes of expense classification, please use the following information: Selling Expenses: Entertainment Expense Wages Administrative Expenses: Depreciation - Computer Equipment, Depreciation - Office Equipment, Insurance Expense, Office Supplies Expense, Rent Expense, Telephone and Internet Expense Finance Expenses: Bank Charges 8) Prepare a post-closing trial balance, and determine whether the subsidiary ledgers agree with the control accounts in the general ledger. 8 PART B QUICKBOOKS PRACTICE SET - KIMS BIKES Quick Books software is to be used to prepare computerised records in Part B to ensure they agree to the manual records. Part B Instructions (1 - 10) 1) Establish a new data base in QuickBooks. In the interview process, choose the Preferences below: Field Select Then What do you sell? Products only Click Next Do you track tax? Yes Click Next Do you want to create estimates in QuickBooks? No Click Next Do you want to track sales orders before you tax invoice your customers? No Click Next Do you want to use sales receipts in QuickBooks? Yes Click Next Do you want to use billing statements in QuickBooks? No Click Next Do you want to use invoices in QuickBooks? Yes Click Next Do you want to use progress invoicing? No Click Next Do you want to keep track of the bills you owe? Yes Click Next Do you want to track inventory in QuickBooks? Yes Click Next Do you want to track time in QuickBooks? No Click Next Do you have employees? No Click Next twice Select a start date to start tracking your finances Accept 01/07/2013 Click Next Would you like to add an existing bank account? Yes Click Next Key in AUSPAC Bank Account for the name of the bank account Click on or after 01/07/2013 to select. Click Next three times 2) Set up lists and Opening Balances for Inventory, Customers and Suppliers as at 1 July. (Addresses are not required for this project for customers or suppliers). 3) Enter opening balances for all other accounts as at 1 July. 9 4) Run a trial balance as at 1 July to ensure all opening balances are accurately entered. Process a general journal entry to correct the items in the trial balance which require adjustment including Uncategorised income, Uncategorised expenses and Opening Balance (equity). 5) Set up preferences for banking for all receipts and payments to process to the AUSPAC Bank Account. 6) Record the July transactions in QuickBooks, opening new accounts as necessary. Tips: GST codes: where payments have GST included, use the tax code NCG for expenses and CAG for the purchase of the computer. Bank Accounts: Check each receipt and payment is processed to the AUSPAC bank account). Dates: ensure that dates are entered correctly in the month of July. 7) Prepare a trial balance as at 31 July and ensure it agrees to the unadjusted manual trial balance prepared in Part A. 8) Process the adjusting entries above in QuickBooks. 9) Print the following reports from QuickBooks as at 31 July: - Profit and Loss (Standard) - Balance Sheet (Standard) - Trial Balance - Inventory Valuation Summary - Customer Balance Detail - Supplier Balance Detail 10) Ensure all reports agree with manual reports generated in Part A (no bank reconciliation is required in part A or Part B). 10 AYN416 FINANCIAL ACCOUNTING 1 - ASSIGNMENT CRITERIA SHEET Student Name: .......................................................... Student No.: ................... Student Name: .......................................................... Student No.: ................... Part A -Manual Practice Set (10% weighting) Criteria 85% ) Demonstrated a comprehensive understanding of relevant concepts, principles and practices. 5 - 7 errors 2- 4 errors Mark 1 or less errors / 10 10 5 Demonstrated competence in the use of accounting software and summarising results. 6 Demonstrated proficiency in the use of accounting software and summarising results. 7 Demonstrated high proficiency in the use of accounting software and summarising results. 5 - 7 errors 2- 4 errors 1 or less errors (20% weighting) Marks Mark / 10 Account: Cash at Bank Date Account: Jnl Ref Jnl Ref Jnl Ref Account: Account: Account: Account: Jnl Ref Jnl Ref Account No. Credit 118 Balance Debit Credit 130 Balance Debit Credit 131 Balance Debit Credit 135 Balance Debit Credit 136 Balance Debit Credit 200 Balance Debit Credit 201 Balance Debit Credit 203 Balance Debit Credit 205 Debit Jnl Ref Debit Jnl Ref Debit Jnl Ref Debit Jnl Ref Debit Jnl Ref Debit Jnl Ref Debit Jnl Ref Debit Jnl Ref Debit Credit Jnl Ref Debit Account No. 510 Credit Balance Debit Credit Jnl Ref Debit Credit Account No. Credit Account No. Credit Account No. Cost of Goods Sold Credit Account No. Bank Charges Credit Account No. Depreciation Computer Equipment Credit Account No. Depreciation Office Equipment Credit Account No. Entertainment Expense Credit Account No. Office Supplies Expense Account No. Rent Expense Credit Account No. Jnl Ref Debit Telephone and Internet Expense Date Credit Account No. Interest Revenue Date Credit Account No. Sales Returns & Allowances Date Date 115 Balance Debit Debit Account No. Sales Revenue Account: Account: Credit Jnl Ref Insurance Expense Account: 112 Balance Debit Debit Income Summary Account: Date Account: Credit Jnl Ref Date Credit 110 Balance Debit Debit Drawings Date Account: Credit Credit Jnl Ref Date Account: Credit Account No. Capital Date Account: Debit Credit 101 Balance Debit Jnl Ref Date Account: Credit Account No. PAYG Tax Payable Date Account: Debit Wages Payable Date Account: Debit Accounts Payable Date Account: Credit Account No. Jnl Ref Date Account: Debit GST Clearing Date Account: Credit Account No. Jnl Ref Date Account: Debit Accumulated Depreciation Computer Equipment Date Account: Debit Account No. Jnl Ref Date Credit Account No. Computer Equipment Date Credit Account No. Jnl Ref Date Account: Debit Accumulated Depreciation Office Equipment Date Account: Debit Jnl Ref Date Credit Account No. Office Equipment Date Credit Account No. Jnl Ref Date Account: Debit Credit Account No. Office Supplies Inventory Date Account: Debit Credit Account No. Prepaid Insurance Date Account: Debit Inventory Date Account: Debit Accounts Receivable Date Account: Account No. Jnl Ref Credit Account No. Jnl Ref Debit Jnl Ref Debit Wages Expense Credit Account No. qattachments_f166bc23209372914901b3997bcdc639a5a6cd9c.xlsx Credit Balance Debit Credit 301 Balance Debit Credit 302 Balance Debit Credit 307 Balance Debit Credit 401 Balance Debit Credit 402 Balance Debit Credit 405 Balance Debit Credit 501 Balance Debit Credit 503 Balance Debit Credit 505 Balance Debit Credit 506 Balance Debit Credit 510 Balance Debit Credit 542 Balance Debit Credit 560 Balance Debit Credit 580 Balance Debit Credit 585 Balance Debit Credit Page 1 of 1 Gen Ledger Account: Cash at Bank Date Account No. Jnl Ref 1Jul Balance c/f 31Jul Cash receipts journal 31Jul Cash payments journal Account: 74,241 1Jul Balance c/f 31Jul Sales journal 31Jul Cash receipts journal 16Jul Sales return Debit 73,920 1Jul Balance c/f 16Jul Sales return 31Jul Sales journal 31Jul Purchase journal 31Jul Cash receipts journal 31Jul Purchase return Debit 2,400 26,000 Debit Credit 1,620 Office Supplies Inventory Date Debit Credit 400 Office Equipment Debit Jnl Ref Credit Debit Accumulated Depreciation Office Equipment Account No. Credit 1Jul Balance c/f 31Jul Account: Account No. Jnl Ref Debit 1Jul Balance c/f 1Jul Purchase Account: Credit Jnl Ref Credit Account No. Jnl Ref 1Jul Balance c/f 1Jul Computer 15Jul Sales return 20Jul Purchase return 29Jul Cash payments journal 31Jul Sales journal 31Jul Cash receipts journal 31Jul Purchase journal Account: Debit Account No. Debit Credit Account No. Jnl Ref Debit Credit 31Jul Wages 380 PAYG Tax Payable Jnl Ref Debit Credit 3,256 Capital Date Debit Credit Drawings Debit Income Summary 31Jul Expenses 31Jul Income Debit Debit Interest Revenue Jnl Ref Debit Bank Charges Debit Debit Debit Insurance Expense Jnl Ref 135 Jnl Ref Debit 31Jul 31Jul Income summary Account: Credit Debit Date 560 Balance Debit Credit 2,800 2,800 Credit 360 Wages Expense Jnl Ref qattachments_77ba328ae7fc8229ddcb8d07f9b1d8d89b1af554.xlsx Debit 360 Credit 8,050 2,099 380 580 Balance Debit Account No. 26Jul 31Jul 31Jul Accrued wages 31Jul Income summary Credit Balance Debit Credit 1,990 Account No. Jnl Ref 12Jul 31Jul Income summary 140 1,990 2,800 Telephone and Internet Expense Date Account: Credit Debit Credit Account No. 510 Credit Balance Debit Credit 135 135 Account No. 542 Account No. Jnl Ref 1Jul 31Jul Income summary 535 510 Balance Debit 140 1,990 Rent Expense Date Account: Credit Debit 31Jul Prepaid insurance 31Jul Income summary Account: Office Supplies Expense Date 506 Balance Debit 535 140 Credit 505 Account No. Jnl Ref 1Jul 31Jul Income summary 15 Balance Debit Credit 9,791 9,791 Credit 535 Entertainment Expense Date Account: Date Credit Account No. Jnl Ref 31Jul 31Jul Income summary Account: 503 Balance Debit 15 9,791 Depreciation Office Equipment Date Balance Debit Credit 33,600 40,500 38,100 Credit Debit 61 501 Account No. Jnl Ref 31Jul 31Jul Income summary Credit 2,400 38,100 15 Depreciation Computer Equipment Date 405 Balance Debit Account No. Jnl Ref Account: Credit 33,600 6,900 31Jul 31Jul Income summary Account: 402 Account No. 31Jul Sales journal 31Jul Cash receipts journal 31Jul Sales return 31Jul Income summary Date 61 61 Credit 13,800 81,000 Balance Debit Credit 4,800 4,800 Credit Cost of Goods Sold Date Balance Debit Account No. Debit 31Jul 31Jul Income summary Account: Credit 4,800 Jnl Ref Account: 11,866 401 Account No. Jnl Ref Date 13,800 67,200 81,000 15Jul 31Jul Income summary Credit 81,061 Credit Sales Returns & Allowances Date 307 Balance Debit Account No. Jnl Ref Account: Credit 69,195 1Jul Cash sales 31Jul Transfer from sales ledger Income summary Account: Debit Sales Revenue Date Credit 186,826 198,692 302 Account No. Jnl Ref 6,512 3,256 5,355 Balance Debit Credit 2,000 2,000 Date Credit Balance Debit Credit 380 301 Account No. Jnl Ref Account: Balance Debit 11,866 2Jul Account: Credit 205 Account No. Jnl Ref Date 203 2,099 1Jul Balance c/f 31Jul Income summary Account: Credit 116,946 122,556 151,156 106,356 106,356 104,596 Balance Debit Account No. 1Jul Balance c/f 29Jul 31Jul Account: 201 Balance Debit 1,760 Wages Payable Date Credit 37,500 36,990 36,510 36,670 17,388 24,108 25,488 22,888 5,610 28,600 44,800 20Jul Purchase returns Repco Account: Balance Debit 6,720 1,380 2,600 1Jul Balance c/f 1Jul Advanced computers 31Jul Purchases journal 31Jul Cash payment journal Date Credit 31,900 41,691 200 160 19,282 Jnl Ref Account: Credit 510 480 Accounts Payable Date 136 Balance Debit 9,791 GST Clearing Date 135 Account No. Debit 1Jul Balance c/f 31Jul Account: Credit 17,500 18,035 Balance Debit Credit 91,510 96,610 5,100 Accumulated Depreciation Computer Equipment Date 131 Balance Debit 535 Computer Equipment Date 130 Balance Debit Credit 51,400 1Jul Balance c/f Date 118 Balance Debit Credit 3,040 3,440 1,990 1,450 Account No. Jnl Ref Account: 115 Balance Debit Credit 1,620 135 1,485 Account No. Jnl Ref 1Jul Balance c/f 6Jul 31Jul Date 112 Balance Debit Credit 96,800 99,200 33,600 65,600 91,600 6,900 84,700 1,600 83,100 83,100 Account No. Jnl Ref 1Jul 31Jul Insurance Account: Credit Prepaid Insurance Date 110 Balance Debit Credit 71,074 144,994 59,000 85,994 5,280 80,714 Account No. Jnl Ref Account: Credit Inventory Date 101 Balance Debit Credit 83,360 157,601 82,723 74,878 Account No. Jnl Ref Account: Credit Accounts Receivable Date Account: Debit 360 Credit 585 Balance Debit Credit 8,050 10,149 10,529 10,529 Page 1 of 1 Gen Ledger