MPA 701 ACCOUNTING T1 2017 Assessment Task 3 Part A- A computerised and manual case study (Individual Task) DUE DATE AND TIME: Week 9, Sunday 14th May 2017, 11:59pm (AEST) PERCENTAGE OF FINAL GRADE: 15% consists of a computerised task (8 marks) and a manual task (7 marks). Learning Outcome Details Unit Learning Outcome (ULO) Graduate Learning Outcome (GLO) ULO 2: This assessment task enables students to apply general purpose financial reporting knowledge to recognize financial transactions and record them in journals and ledgers; incorporate end of the year adjustments; and prepare financial statements of small and medium scale business organisations. GLO1: Discipline-specific knowledge and capabilities ULO 3: Record business transactions and prepare financial statements using an accounting software (XERO), in small and medium scale business organisations. GLO3: Digital Literacy GLO5: Problem solving GLO6: Self-management skills Assessment Feedback Students who submit their work by the due date will receive their marks and feedback on CloudDeakin on within 15 working days Assessment Due date and Form of Submission The assignment data will be released on the beginning of the week 9 or earlier. It is due Sunday of week 9, through online submissions Requirements Assessment Task 3 - Part A is in two sections, a set of financial records compiled using Xero software and a manual set of financial records. The computerised set must be completed using Xero. You are required to create a Xero file. The manual task must be completed on the individual PROFORMA provided. The “HGS-Proforma” document is located in the ‘Assessment Task 3’ folder. All figures in the financial records can be recorded to the nearest whole dollar. Case Study Data Home Garden Supplies (HGS) Pty Ltd HGS PTY LTD is a small business selling garden tools and equipment to retail businesses. It is located at 5 Garden Rd, Blackburne. The business is owned and managed by James Tree. The business structure is a proprietary limited company, with 15,000 issued and paid up $3.00 shares. The business sells stock for cash and credit. James offers credit on terms Net 30 days. The credit rating for each customer is checked before the goods are supplied. Delivery charges are built into the price of the products sold. All purchases are made on credit. James tries to pay all suppliers within the credit terms given. It is not expected that there will be any increases in prices either from the supplier or to the customer during the period. The business currently offers 3 lines of stock for sale – Lawn Mower, Blower and Trimmer. Stocks are held in a warehouse at the rear of the shop so that a close eye can be kept on the movement of each line. The business has an overdraft facility at the Enterprise Bank of $50 000 which has been arranged so that suppliers can be paid on time. There are two employees who are paid twice a month. The balance sheet of HGS PTY LTD at 31st March 2017 showed the following assets and liabilities:   HGS PTY LTD BALANCE SHEET AS AT 31 March 2017 CURRENT ASSETS $ $ $ Enterprise Bank 12,025 Accounts Receivable 6,710 Office Supplies 800 Inventory Asset 1,240 20,775 NON CURRENT ASSETS Land 65,000 Building 115,000 Less Accumulated Depreciation 5,500 109,500 Office Equipment at Cost 7,200 Less Accumulated Depreciation 2,400 4,800 Motor Vehicles at Cost 37,700 Less Accumulated Depreciation 9,100 28,600 207,900 TOTAL ASSETS 228,675 CURRENT LIABILITIES Accounts Payable 4,037 Final Dividend Payable 3,250 Tax Payable 3,475 GST Clearing 243 11,005 NON CURRENT LIABILITIES Mortgage - Lenders Bank 167,120 167,120 TOTAL LIABILITIES 178,125 EQUITY Issued and Paid Up Capital 45,000 Retained Earnings 5,550 50,550 TOTAL LIABILITIES & EQUITY 228,675 Details of the inventory, accounts receivable and accounts payable are as follows: SCHEDULE OF INVENTORY ON HAND AS AT 31 March 2017 Item Code Description On Hand Unit Cost (GST Exclusive) Total Cost Unit Selling Price (GST Inclusive) Mower4 Mower 6 $150 $900 $330 Blower Petrol Blower 2 $70 $140 $154 Trimmer Petrol Trimmer 4 $50 $200 $110 In April HGS PTY LTD will be stocking a new item – Chain Saw, cost $180 (GST Exclusive), selling price $396 (GST inclusive). Stock code – CS2000. SCHEDULE OF ACCOUNTS RECEIVABLE AS AT 31 March 2017 DEBTOR ADDRESS AMOUNT Garden City 25 Sunshine Rd, Wantirna South 3,850 Harrys Hardware 120 Chadstone Rd, Templestowe 2,860 $6,710 SCHEDULE OF ACCOUNTS PAYABLE AS AT 31 March 2017 CREDITOR ADDRESS AMOUNT Garden Tool 125 Smith St, Glen Waverley 4,037 $4,037 Transactions for the month of April 2017 03/04/2017 – Paid amount owing to Australian Taxation Office at 31st March GST and Tax Payable balances with chq. #5051. 03/04/2017 – Sold to Garden City, 2 mower, 1 petrol blower and 1 petrol trimer on invoice # 608 (on credit). 04/04/2017 – Purchased 20 mower, 50 petrol blower and 40 petrol trimmer from Garden Tool Manufacturing, n/30, invoice # S279. 05/04/2017 – Paid Garden Tool Ltd $4,037 in full settlement of the outstanding balance for March purchases with chq #5052. 06/04/2017 – Received a cheque from Garden City for $3,850 in full settlement of March account outstanding. 07/04/2017 – Purchased office supplies from Ink & Paper for $176 (GST inclusive), paid cash chq# 5053. 10/04/2017 – Returned 2 Petrol Trimer to Garden Tool Ltd, they were damaged. The seller issued a credit note (#336) for the amount. 11/04/2017 – Received a cheque for from Harrys Hardware for $2,860 in full settlement of March outstanding account. 12/04/2017 – Paid two weeks wages to employees $1575 by direct debit (Gross $1,800, PAYG $225). 13/04/2017 – Paid final dividend to the shareholders $3,250 with chq. # 5054. 19/04/2017 – Purchased 30 Chain Saw at $198 each (GST inclusive) from Arbour Ltd, invoice #6178. 20/04/2017 – Cash sale of 1 mower, 1 petrol blower and 1 petrol trimmer on invoice #522. 21/04/2017 – Sold to Ricks Garden Centre (39 Main St., Dandenong) 8 mower, 10 petrol blower, 10 petrol trimmer and 6 chain saw on invoice #609. 25/04/2017 – Sold to Garden City 10 chain saw, 6 mower, 5 petrol blower and 5 petrol trimmer, on invoice #610. 27/04/2017 – Paid $1650 (GST inclusive) to IAG Building Insurance for 1 April to 30 June with chq. # 5055. 28/04/2017 – Issued a credit note (#882) to Garden City for returning 2 mower. 29/04/2017 – Paid Metro Service Station $$462 (GST inclusive) for April petrol expenses with chq. # 5056. 29/04/2017 – Paid Standard Press $1760 (GST inclusive) for May-June advertisement with chq. # 5057 30/04/2017 – Paid loan instalment to Lenders Bank $6,500, the amount included one month interest for April (the mortgage annual interest rate is 5%) with chq. #5058. ADDITIONAL INFORMATION AT 30 April 2017 1. Depreciation is to be charged for April as follows: Asset Dep. Method Useful life-year Residual Value Building Straight line 40 $5,000 Motor Vehicle Straight line 8 $1,300 Office Equipment Straight line 10 - 2. Wages owing at 30 April 2017 are $1210. 3. There is an unpaid office cleaning services fees at 30 April 2017 of $825 (GST inclusive). 4. Cash was received from the issue of a further 4000 shares at $3 each on 30 April 2017. 5. Office supplies on hand were $380 on 30 April 2017. REQUIRED: Computerised Records Using Xero In this part you process recording of the transactions (including the additional items) using Xero. Xero is a cloud-based computerised accounting package. There are detailed video instructions on creating your Xero file and recording transactions in Xero available on CloudDeakin. It is highly recommended that you watch these before undertaking this section. Using your internet browser click on https://www.xero.com/au/teaching-accounting/ 1. Complete the required information. 2. Xero will send you an email which allows you to activate your account. 3. Once you log onto Xero, Select Settings, General Setting, Organisation Setting 4. Complete the following information: Display Name: HGS Pty Ltd - Your name (For example HGS - Ali Yaftian) Legal Trading Name: HGS Pty Ltd - Your name (For example HGS Pty Ltd - Ali Yaftian) Line of business: Retail Organisation type: Sole Trader ABN: leave blank The reminder of the form does not need to be completed for the purposes of the assignment. 5. Return to General Setting, click Chart of Accounts. Xero has suggested a range of accounts for your use. The account names may be slightly different to those you need to create when you are recording. This is okay, you do not need to standardise the names. Additional accounts will need to be added. To add new accounts, Click on new accounts and complete the necessary information. 6. Return to General Settings and select financial settings. Check that the financial yearend is 30 June. The tax defaults for both sales and purchases should read “tax inclusive”. Change these details if necessary. 7. Return to general settings. 8. Select Conversion Balances. Click on conversion date and change the month to April (this means you will enter the opening balances based on the 31 March closing balances). Save. 9. Click on Add Comparative Balances (if necessary click on “Show all accounts”). Enter the opening balances by account from the opening Statement of Financial Position in the appropriate debit/credit column. Xero operates with only one GST account – “GST Clearing”. Make sure the opening balances debits and credits are equal to each other. Save. 10. A new window will open that requires you to enter the opening balances for individual debtors and then creditors. Enter each debtor, the amount owning and the date of the transaction. Repeat for creditors. 11. Go to Accounts, Select inventory. Click on Add new item and create each inventory account. Then import opening inventory balances using the wizard available in Xero. You are now ready to start entering the transaction data into Xero. You should record transactions in date order. This is critically important for any inventory transactions (sales and purchases) as Xero calculates the value of inventory using the moving weighted average method. It is easiest to enter sales, purchases and cash transactions through the dashboard. Please note: you will have a free 30 day access to Xero. If you have already registered for Xero and started your practice with creating the practice case, the 30 day access will be only applied to that practice case from the date you have created that file. To do your assignment you don't need to delete the practice and add new information, you have to create a new company for your assignment in week 9. To create a new organization in Xero, you have to click on "Home" option on top menu (you can get access to "Home" option from Account) of Xero and then click on green button "Add an organisation". Manual Preparation of Financial Records Use the ‘HGS Pty Ltd - Proforma Ledgers’ file to complete manual set of the assignment. This file contains Accounts receivable and Accounts payable subsidiary ledgers and some general ledger accounts. Note that this file is supplied in “word” format so that you can adjust the columns or add ledgers if you wish to do so. Use the information provided (the same information used for the computerised part) to prepare the following subsidiary ledger accounts and general ledger accounts: 1. Prepare Accounts Receivable and Accounts payable subsidiary ledgers. 2. Prepare Cash at Bank, Accounts Receivable, Accounts Payable, Inventory and Sales general Ledger accounts (Only these five accounts). Please note that you are not required to prepare general journal but preparing the general journal could assist you for preparation of the above accounts. Submission Instructions 1. This assignment is to be submitted ONLINE ONLY (You are NOT required to submit a hard copy). 2. You must type your answer onto the PROFORMA document provided for the manual set. 3. The completed PROFORMA for the manual set, and two pdf files for the computerised set must be submitted into the allocated area on CloudDeakin under the Assessment folder. 4. You are not required to upload an Assignment Cover Sheet. You will complete a Plagiarism declaration when you access the Dropbox. 5. You are allowed to make resubmissions within the submission period. Please note that your last submission overwrites previous submissions, however this must be submitted before the DUE DATE. You must keep a backup copy of every assignment you submit, until the marked assignment has been returned to you. In the unlikely event that one of your assignments is misplaced, you will need to submit your backup copy. Any work you submit may be checked by electronic or other means for the purposes of detecting collusion and/or plagiarism. When you are required to submit an assignment through your CloudDeakin unit site, you will receive an email to your Deakin email address confirming that it has been submitted. You should check that you can see your assignment in the Submissions view of the Assignment dropbox folder after upload, and check for, and keep, the email receipt for the submission. Submitting Assessment Task Part ‘A’ and Part ‘B’ YOU WILL BE SUBMITTING 3 .pdf FILES FOR ASSSESSMENT TASK 3 -PART A: 1. Proforma subsidiary Ledgers and general Ledgers (Word file should be converted to a .pdf file). 2. Trial Balance .pdf file (From XERO) 3. Journal Report .pdf file (From XERO) To submit files from the CloudDeakin top menu: 1. Select "Assessment", “Assignments” 2. Select "Assessment Task 3 Part A _ Proforma (Manual).pdf file” 3. Select "Add a file" 4. Select "Browse" and then choose your “Proforma Ledgers” pdf file (make sure that your file name includes Proforma, your name and student ID as part of the pdf file name). 5. Select "Submit". 6. Select "Assessment", “Assignments” second time 7. Select "Assessment Task 3–Trial Balance (Xero)” 8. Select "Add a file" 9. Select "Browse" and then choose your Trial Balance.pdf file (make sure that your file name includes Trial Balance, your name and student ID as part of the .pdf file name). 10. Select "Submit". 11. Select "Assessment", "Assignments" third time 12. Select "Assessment Task 3-Journal Report (Xero)" 13. Select "Add a file" 14. Select "Browse" and then choose your Journal Report.pdf file (make sure that your file name includes Journal Report, your name and student ID as part of the .pdf file name) 15. Select "Submit" YOU WILL BE SUBMITTING 1 WORD DOCUMENT FILE FOR ASSSESSMENT TASK 3 -PART B: 16. Select "Submit". 17. Select "Assessment", "Assignments" fourth time 18. Select "Assessment Task 3-Part B" 19. Select "Add a file" 20. Select "Browse" and then choose your Part B Word file (make sure that your file name includes Reflective Report, your name and student ID as part of the .pdf file name) Both parts of the assessment task must be submitted before Sunday 14th May 2017 – 11:59pm (AEST). Only the online submissions via CloudDeakin within the submission period will be marked.