Performance Task 3

 

HINT

If you need help with this task, please access the FNSACC421 Tutor Assist_Performance Task 3.pdf. This document breaks down the steps to complete the task, as well as provides an example.

Document required

You need to demonstrate how you use the features and functions of digital technologies to access, record, store, organise and compile data. We have prepared templates for you to use.

Download and save the Riskco Financial Records_Template.xlsx file to your device using the naming convention: Riskco Financials 30-06-XX_Your Name; for example, Riskco Financials 30-06-XX_Jo Green.

Scenario

You are to assume the role of John Jacks, an accountant working for a risk management company called Riskco. Your manager, Bob Banks, is the Chief Financial Officer (CFO) of the parent company, WAMco. Bob has sent you an email regarding special transactions that you must process for the 30 June 20XX financial year.

Email

TO:
FROM:
DATE:	30 June 20XX
SUBJECT:	Riskco June 20XX accrual and other journals
MESSAGE
Dear John, I hope this email finds you well. At Riskco we use accrual journals to make sure that our revenue and expenses are allocated the right period. Your task is to ensure this occurs. You will need spreadsheet software for this task: The audit fees incurred by Riskco for 30/06/20XX are $2,500. I would like this accrual journal to be processed at the end of 30/06/20XX. Risk management fee revenue invoiced on the 30/06/20XX for $4,500 for Wana for risk management services completed on the 30/06/20XX. The customer has not yet paid the account. The manager, Joanna, mentioned that they would like the transaction to be recognised 30/06/20XX as an accrual journal. Don't forget that we should create the risk management revenue and audit fee journals as reversing journals. The journals are to be reversed at the beginning of the next financial year. 30/06/20XX $10,000 of additional funds was transferred from Wamco into the Wealth Bank account (this journal is not an accrual journal and is a non-reversing journal). Please use the enclosed Riskco chart of accounts to find the correct account codes. Please disregard GST for this task. Once you have completed the journals, I would like you to post the entries to the relevant ledgers for each journal. Please use the information from the Riskco trial balance and chart of accounts to assist you. Once you have completed the ledgers for the journals, please update the trial balance as at 30/06/20XX to reflect the accrual and non-accrual journals that you have created.   Thank you and regards, Bob Banks CFO WAMco Phone: (02) 2222 2222

 

Riskco Chart of Accounts

Code	Category	Account
6-1000	Current assets	Current assets
6-1001	Assets current	Cash at Bank Wealth Bank
6-1002	Assets current	Bada Cash Management Account
6-1002	Assets current	Petty cash
6-1003	Assets current	Accounts receivable
6-2000	Fixed assets	Fixed assets
6-2001	Assets non-current	Fixed assets
6-2002	Assets non-current	Rental bond
7-0000	Current liabilities	Current liabilities
7-0001	Current liabilities	GST claimable
7-0002	Current liabilities	GST payable
7-0003	Current liabilities	Accounts payable
7-0004	Current liabilities	Super guarantee payable
7-0005	Current liabilities	Prepaid risk consultancy fees
7-0006	Current liabilities	Audit fees payable
8-0000	Owners' equity	Owners' equity
8-0001	Owners' equity	Owners' equity WAMco
9-0000	Revenue	Revenue
9-0001	Revenue	Risk consultancy revenue
10-0000	Expenses	Expenses
10-0001	Expenses	Marketing expenses
10-0002	Expenses	Office cleaning
10-0003	Expenses	Wages expense
10-0004	Expenses	Super guarantee expense
10-0005	Expenses	Telephone expense
10-0006	Expenses	Subscriptions
10-0007	Expenses	IT expenses
10-0008	Expenses	Insurance expense
10-0009	Expenses	PAYG salaries expense
10-0010	Expenses	Rental expense
10-0011	Expenses	Stationery
10-0012	Expenses	Miscellaneous / Amenities
10-0013	Expenses	Audit fees

 

Riskco 30 June 20XX Trial Balance Pre-accrual Journals
Category	Debit	Credit
Cash at Bank Wealth Bank	$12,525.16
Bada Cash Management Account	$80,000.00
Petty cash	$600.00
Accounts receivable	$7,150.00
Fixed assets	$163,024.00
Rental bond	$6,000.00
GST claimable	$1,617.91
GST payable		$1,200.00
Accounts payable		$3,842.90
Super guarantee payable		$2,786.67
Owners' Equity WAMco		$299,626.00
Risk consultancy revenue		$12,000.00
Marketing expenses	$1,318.18
Office cleaning	$240.00
Wages expense	$21,759.34
Super guarantee expense	$2,786.67
Telephone expense	$587.10
Subscriptions	$490.91
IT expenses	$6,400.00
Insurance expense	$2,700.00
PAYG salaries expense	$7,574.00
Rental expense	$4,364.00
Stationery	$250.00
Staff amenities	$68.30
Total	$319,455.57	$319,455.57

 

Instructions

STEP 1: Riskco Journals

Access the Riskco Financial Records spreadsheet. Use the Journals worksheet to create the three journals:

1. Risk Management Revenue Accrual Journal
2. Audit Fee Accrual Journal
3. Transfer of Funds Journal

STEP 2: Ledgers

Refer to the information in the scenario; then complete the ledgers worksheet, including:

1. Accounts Receivable Ledger June 20XX
2. Risk Management Revenue Ledger 30 June 20XX
3. Audit Fees Payable Ledger 30 June 20XX
4. Audit Fees Expense Ledger
5. Cash at Bank Ledger 30 June 20XX Wealth Bank
6. Riskco WAMco Owners Equity as at 30 June 20XX

STEP 3: Trial Balance

Update the Trial Balance worksheet for the journals you have posted to the ledgers.

Evidence required

Uploaded the completed Riskco Financials spreadsheet, including:

• 3 Journals
• 6 Ledgers
• 1 Trial Balance

 

I AM NEEDING HELP WITH MY LEDGERS;

TRAINER FEEDBACK: Your journal entries and trial balance are correct.
General ledger - Accounts receivable - Remove the credit entry of $4,500. Closing balance should be $11,650.
Audit fees expense - remove reversal of accrual.

RISKCO LEDGERS
Accounts Receivable Ledger June 20XX
Date	Details	Debit	Credit	Balance
01/06/20XX	Opening balance			$              6,000.00
03/06/20XX	Risk management fees for Rima Tais June 20XX	$            1,000.000		$              7,000.00
10/06/20XX	Rima Tais additional risk management for June 20XX	$               150.000		$              7,150.00
30/06/20XX
Closing balance
Risk Management Revenue Ledger June 20XX
Date	Details	Debit	Credit	Balance
01/06/20XX	Opening balance			$            10,850.00
03/06/20XX	Risk management fees for Rima Tais June 20XX		$            1,000.000	$            11,850.00
10/06/20XX	Rima Tais additional risk management for June		$               150.000	$              7,150.00
30/06/20XX
Closing balance
Audit Fees Payable Ledger 30 June 20XX
Date	Details	Debit	Credit	Balance
01/06/20XX	Opening balance			$0.00
30/06/20XX
Closing balance	$              2,500.00
Audit Fees Expense Ledger
Date	Details	Debit	Credit	Balance
01/06/20XX	Opening balance			$0.00
30/06/20XX	Closing balance	$                          -	$            2,500.000	$2,500.00
Closing balance	$              2,500.00
Cash at Bank Ledger 30 June 20XX Wealth Bank
Date	Details	Debit	Credit	Balance
01/06/20XX	Opening balance			$            35,560.12
03/06/20XX	Stationery purchase Xco Stationery		$               110.000	$            35,450.12
15/06/20XX	Electricity expense Banaelect		$               323.230	$            35,126.89
17/06/20XX	Risk revenue May 20XX Abaam Pty Ltd	$            5,000.000		$40,126.89
20/06/20XX	Salary and wages staff June 20SXX		$            5,619.230	$            34,507.66
25/06/20XX	Rent June		$            4,560.230	$            29,947.43
28/06/20XX	Consultant fees Becon June 20XX		$            7,850.000	$            22,097.43
29/06/20XX	IT from IT World		$            9,572.270	$            12,525.16
30/06/20XX	Closing balance	$                          -	$          10,000.000	$22,525.16
Closing balance	$            22,525.16
Riskco WAMco Owners' Equity as at 30 June 20XX
Date	Details	Debit	Credit	Balance
01/06/20XX	Opening balance			$299,626.00
30/06/20XX	Closing balance	$                          -	$       299,626.000	$299,626.00
Closing balance	$299,626.00