prepare financial reports

Case Study Overview Micro Systems is an electronics company loc in the 2019 financial year and is operating as a cctronics company located in Bayswater. It is currently trading year and is operating as a sole trader using an accrual accounting system. John Franklin is the proprietor of this business. You are the junior bookkeeper for Micro Systems, and you business manager, Lily Thompson per for Micro Systems, and you directly report to the You have been tasked to process end of period adjustments, closet end of period adjustments, close the ledgers in preparation for the new financial year and prepare a post-closing trial Da al year and prepare a post-closing trial balance for the company. In completing this process, you will need to follow this process, you will need to follow Micro Systems' accounting policies and procedures to guide you through your tasks. To ensure the successful completion of this task, it has been divided into tasks wa make up the following steps: 1) Maintain asset register 2) Record general journal entries for balance day adjustment 3) Prepare final ledger accounts 4) Prepare a post-closing trial balance You will be provided with templates throughout this assessment to document the evidence of your completion of the relevant unit requirements addressed in this task. The accounting policies and procedures follow. Review the case study carefully and complete the tasks according to the scenario provided. Accounting Policies and Procedures for Me Micro Systems inting system, recording all 1. Accounting System Micro Systems keeps its books based on an Accounts Receivable and Accounts Payable. Inventory is basis with stocktakes being completed at the end of the made for opening and closing stock. Payment is made by (EFT) to credit suppliers, credit card for cash purchases, items. All discrepancies should be identified and resolved of clarification. is kept on a periodic inventory the year and adjustments being ade by electronic funds transfer chases, and petty cash for small and resolved or referred to your supervisor for 2. General Ledger A chart of accounts has been drawn up in consultation with the a accounts shall not be added, changed, or deleted without consultat supervisor. All general ledger accounts need to be appropri a running balance in each line entry. general ledger accounts need to be appropriately completed, showing up in consultation with the accountant. Ledger or deleted without consultation with your 3. General Journal Entries General Journal tasks should be appropriately structured in accordance with standard accounting practice and should contain: a) Appropriate supporting documentation should be available for each journal entry; b) The correct date of the entry; c) The correct account number provided; d) The correct name of the general ledger account; e) Amounts allocated to the correct debit or credit column; f) A brief memo that describes the transaction; and g) A line must be placed under the journal, not extend across the debit and credi columns to indicate the end of the journal entry. 4. Asset Registers ne company has chosen not to take advantage of the small business income tax ions, and the method of denneintion will be in accordance with the classes of assets shown below. a) Assets costing more than $1.000,00 excluding tax must have an asset register cand created for the item.grouped into one of the asset groups, and depreciated according to its effective life. Assets will be grouped as follows: a) Office equipment will have an effective life of five (5) years, with a straight line depreciation rate of 20%. b) Motor vehicles will have an effective life of eight (8) years and depreciated using the reducing balance method a with a rate of 12.5%. 5. Reconciliation of Assets At the end of the financial year, the value of assets in the asset register must reconcile with the value of assets in the balance sheet for Micro Systems. Any discrepancy should be identified, and any adjustments made, as necessary. 6. Provision for Doubtful Debts At the end of the financial year, at the discretion of the company director, a Provisio for Doubtful Debts of 2% of the final Accounts Receivable balance should be made. tained from at least two dealers, a basis up to the date of 7. Disposal of Assets When an asset is traded in or sold, quotes must be obtained from at of the asset must show: recision must be approved by your supervisor. The entry for th a) The depreciation is to be calculated on a pro-rata basis up to the disposal; b) The sale of the asset including GST; c) The value of any loss or gain on the disposal of the asset 8. Financial Reports The following financial reports can only be produced after all tasks for the year have been entered, end of year adjustments made, bank accounts reconciled, asset registers reconciled, and debtors and creditors reconciled: a) A trial balance; b) A profit and loss statement; and c) A balance sheets. 9. Occupational Health and Safety The company recognises its moral and legal responsibility in relation to the Work Health and Safety Act 2011 to provide a safe and healthy work environment. Part 1 - Asset Register For Part 1 of this case study you are provided with the following excel spreadsheet file BSBFIA401 Asset Register Your teacher will email this to you through your student email account. You are required complete a series of tasks to produce the final ESBELA401 Ace Register excel file Use used for appropriate templates in the tabs of this file to produce the necessary information required the tasks. Ph Task 1.1 - Creating an Asset Register Using the information below and the policies and procedures for Micro Systems, you are required to prepare the asset register for the following assets, using the excel spreadshee BSBFIA401 Asset Register You will also need to refer to company policies and procedures In the excel file you should use a separate tab for each asset Asset 1. - save this in the tab Asset Register 1 and rename Photocopier Micro Systems purchased a Canon Photocopy on 17/2018 for $22.000 cash (including GST), had an expected residual value of zero. This photocopier is to be located at the Coburg branch and was purchased from Officeworks. The serial number is CAN23940097. This is to be asset number 1. Asset 2 - save this in the tab Asset Register 2 and rename Motor Vehicle Micro Systems purchased a new car on 1/16/2015 for $44.000 cash (including GST). It had an expected residual value of $11,000. This car is to be located at the Coburg branch and was purchased from Coburg Toyota. The registration number is 1AP 9YU. It was a Toyota Camry. It was sold for $20,000 cash (excluding GST) on 30/6/2019. This is to be asset number 2. When you have finished, save the file. Task 1.2 - Recording the Disposal of an Asset Using the information below you are required to prepare the General Journal entries to record the disposal of the car. Please record these journal entries under the tab in the excel file named GJ entries The car was sold for $20,000 cash (excluding GST) on 30/6/2019. When you have finished, save the file. Review June 2020 Version 30/1/2020 Task 1.3 - Prepare a depreciation schedule for 3070 preciation schedule for 30/6/2019 Using the information that you prepared in y depreciation schedule for the year ended 30/6/20 depreciation Sch tab that you prepared in your assets registers please complet e for the year ended 30/6/2019, located in the excel file unde When you have finished, save the file. Part 2 Case Study Overview Micro Systems is an electronics company loc in the 2019 financial year and is operating as a cctronics company located in Bayswater. It is currently trading year and is operating as a sole trader using an accrual accounting system. John Franklin is the proprietor of this business. You are the junior bookkeeper for Micro Systems, and you business manager, Lily Thompson per for Micro Systems, and you directly report to the You have been tasked to process end of period adjustments, closet end of period adjustments, close the ledgers in preparation for the new financial year and prepare a post-closing trial Da al year and prepare a post-closing trial balance for the company. In completing this process, you will need to follow this process, you will need to follow Micro Systems' accounting policies and procedures to guide you through your tasks. To ensure the successful completion of this task, it has been divided into tasks wa make up the following steps: 1) Maintain asset register 2) Record general journal entries for balance day adjustment 3) Prepare final ledger accounts 4) Prepare a post-closing trial balance You will be provided with templates throughout this assessment to document the evidence of your completion of the relevant unit requirements addressed in this task. The accounting policies and procedures follow. Review the case study carefully and complete the tasks according to the scenario provided. Accounting Policies and Procedures for Me Micro Systems inting system, recording all 1. Accounting System Micro Systems keeps its books based on an Accounts Receivable and Accounts Payable. Inventory is basis with stocktakes being completed at the end of the made for opening and closing stock. Payment is made by (EFT) to credit suppliers, credit card for cash purchases, items. All discrepancies should be identified and resolved of clarification. is kept on a periodic inventory the year and adjustments being ade by electronic funds transfer chases, and petty cash for small and resolved or referred to your supervisor for 2. General Ledger A chart of accounts has been drawn up in consultation with the a accounts shall not be added, changed, or deleted without consultat supervisor. All general ledger accounts need to be appropri a running balance in each line entry. general ledger accounts need to be appropriately completed, showing up in consultation with the accountant. Ledger or deleted without consultation with your 3. General Journal Entries General Journal tasks should be appropriately structured in accordance with standard accounting practice and should contain: a) Appropriate supporting documentation should be available for each journal entry; b) The correct date of the entry; c) The correct account number provided; d) The correct name of the general ledger account; e) Amounts allocated to the correct debit or credit column; f) A brief memo that describes the transaction; and g) A line must be placed under the journal, not extend across the debit and credi columns to indicate the end of the journal entry. 4. Asset Registers ne company has chosen not to take advantage of the small business income tax ions, and the method of denneintion will be in accordance with the classes of assets shown below. a) Assets costing more than $1.000,00 excluding tax must have an asset register cand created for the item.grouped into one of the asset groups, and depreciated according to its effective life. Assets will be grouped as follows: a) Office equipment will have an effective life of five (5) years, with a straight line depreciation rate of 20%. b) Motor vehicles will have an effective life of eight (8) years and depreciated using the reducing balance method a with a rate of 12.5%. 5. Reconciliation of Assets At the end of the financial year, the value of assets in the asset register must reconcile with the value of assets in the balance sheet for Micro Systems. Any discrepancy should be identified, and any adjustments made, as necessary. 6. Provision for Doubtful Debts At the end of the financial year, at the discretion of the company director, a Provisio for Doubtful Debts of 2% of the final Accounts Receivable balance should be made. tained from at least two dealers, a basis up to the date of 7. Disposal of Assets When an asset is traded in or sold, quotes must be obtained from at of the asset must show: recision must be approved by your supervisor. The entry for th a) The depreciation is to be calculated on a pro-rata basis up to the disposal; b) The sale of the asset including GST; c) The value of any loss or gain on the disposal of the asset 8. Financial Reports The following financial reports can only be produced after all tasks for the year have been entered, end of year adjustments made, bank accounts reconciled, asset registers reconciled, and debtors and creditors reconciled: a) A trial balance; b) A profit and loss statement; and c) A balance sheets. 9. Occupational Health and Safety The company recognises its moral and legal responsibility in relation to the Work Health and Safety Act 2011 to provide a safe and healthy work environment. Part 1 - Asset Register For Part 1 of this case study you are provided with the following excel spreadsheet file BSBFIA401 Asset Register Your teacher will email this to you through your student email account. You are required complete a series of tasks to produce the final ESBELA401 Ace Register excel file Use used for appropriate templates in the tabs of this file to produce the necessary information required the tasks. Ph Task 1.1 - Creating an Asset Register Using the information below and the policies and procedures for Micro Systems, you are required to prepare the asset register for the following assets, using the excel spreadshee BSBFIA401 Asset Register You will also need to refer to company policies and procedures In the excel file you should use a separate tab for each asset Asset 1. - save this in the tab Asset Register 1 and rename Photocopier Micro Systems purchased a Canon Photocopy on 17/2018 for $22.000 cash (including GST), had an expected residual value of zero. This photocopier is to be located at the Coburg branch and was purchased from Officeworks. The serial number is CAN23940097. This is to be asset number 1. Asset 2 - save this in the tab Asset Register 2 and rename Motor Vehicle Micro Systems purchased a new car on 1/16/2015 for $44.000 cash (including GST). It had an expected residual value of $11,000. This car is to be located at the Coburg branch and was purchased from Coburg Toyota. The registration number is 1AP 9YU. It was a Toyota Camry. It was sold for $20,000 cash (excluding GST) on 30/6/2019. This is to be asset number 2. When you have finished, save the file. Task 1.2 - Recording the Disposal of an Asset Using the information below you are required to prepare the General Journal entries to record the disposal of the car. Please record these journal entries under the tab in the excel file named GJ entries The car was sold for $20,000 cash (excluding GST) on 30/6/2019. When you have finished, save the file. Review June 2020 Version 30/1/2020 Task 1.3 - Prepare a depreciation schedule for 3070 preciation schedule for 30/6/2019 Using the information that you prepared in y depreciation schedule for the year ended 30/6/20 depreciation Sch tab that you prepared in your assets registers please complet e for the year ended 30/6/2019, located in the excel file unde When you have finished, save the file. Part 2