accounting with zero
ACC601 Xero assignment S1 2020 v1 International College of Management, Sydney Subject Title Accounting for Business Decisions Subject Code ACC601 Assessment Individual Assignment using XERO Assessment total 15% Date and time due Sunday, 11.55 pm, End of Week 6 Instructions Students must submit seven (7) reports generated from Xero in pdf format through the Assignment Submission Box. A list of these reports is set out below. All in pdf format Student Name Student Number Report Your mark Question 1 (6 marks) Trial Balance – for the period 31 December 2019 to 31 January 2020 Question 2 (2 marks) Aged payables as at 31 January 2020 [Summary] Question 3 (2 marks) Aged Receivables as at 31 January 2020 [Summary] Question 4 (2 marks) General ledger [Detail] 31 December 2019 to 31 January 2020 Question 5 (3 marks) Profit & loss statement for the period 31 December 2019 31 January 2020 Question 6 (3 marks) Balance sheet - As at 31 January 2020 Question 7 (2 marks) General Journals - 1 - 31 January 2020 ACCOUNTING FOR BUSINESS DECISIONS – ACC601 Individual Assignment – Date due: End of Week 8 Using Accounting Software This case study is designed to introduce you to using double entry computer accounting software for a small business. It covers many of the common business transactions including those which have covered in class. This assignment will also include Goods and Services Tax (GST) calculations as this is embedded in the accounting software, but is not examined. This assignment is not meant to be a data entry exercise, but you are required to carefully record each transaction, understand how the software records these transactions in both the general and subsidiary ledgers and create reports and then analyse and understand these reports. Accountants were one of the first professions to use accounting software. XERO is a relatively new and now widely used software as it has a number of innovative features, such as: - · The software application is in the ‘cloud’ so it can be accessed anywhere in the world on any connected device and there is no software to load onto computers; · The software is updated regularly by Xero, so no updating required by users; · The software links to other applications easily such as bank accounts – bank transactions are uploaded automatically when the user logs into the application; · Written in user friendly language rather than being for ‘accountants. The Freshwater Surf Shop Pty Limited The Freshwater Surf Shop (FSS PL) is a retail store located in Freshwater, overlooking Freshwater Beach. FSS PL focuses on the surfing market, providing surfing lessons as well as equipment and clothing and other merchandise sales. Equipment is sold to the general public as well as in bulk to sporting clubs and schools. Surfing lessons are usually held in groups. The store is owned by two people – Rose Nguyen and Simon Jones. They have been operating the store for 2 years after initially investing $200,000 each of their own money into the business. They are joint Chief Executive Officers (CEO’s) and equal shareholders. Surfing lessons are conducted seven (7) days per week subject to the weather. These lessons are mainly catered to tourists and / or local residents wanting to learn surfing. Equipment is included in the cost of surfing lessons. FSS PL earns most of its revenue from clothing and equipment sales. The shop is open 7 days per week and as well, FSS PL sells directly to surfing clubs and schools. The store has operated the business using a manual accounting system since it started on 1 July 2016. Accounting is getting too complicated and time consuming for Rose and Simon and they have appointed you as their new Accountant. They have heard about Xero as an easy to use accounting system and they would like you to set up their accounts on this system and also manage the accounting from now on. You gather the following information that will help you set up the company in XERO: Company Information Company name: The Freshwater Surf Shop Pty Limited ABN (Australian Business Number) - 54 174 259 919 Current Financial Year: 2020 Financial Reporting period: 1 July 2019 to 30 June 2020 Conversion Month: January 2020 Accounting Periods: Twelve This list below can be used to create an accounts list with the account opening balances. Trial balance as at 31 December 2019 Dr Cr Cash at bank 190,363.00 Petty Cash 200.00 Inventory 51,525.00 Accounts Receivable - Prepaid Insurance - Prepaid Rent 93,000.00 Leasehold Improvements 105,000.00 Accumulated Depreciation - Leasehold Improvements 12,778.00 Motor vehicles 58,000.00 Accumulated depreciation - MV 16,000.00 Office Equipment 35,200.00 Accumulated depreciation - Office Equip' 3,771.00 GST - Accounts payable - Accruals - Holiday Pay 17,075.00 Revenue received in advance 2,200.00 Bank Loan - due in 2026 50,000.00 Share capital 400,000.00 Retained earnings 151,485.00 Sales Revenue - Clothing and merchandise 325,400.00 Revenue - Surf Lessons 62,000.00 Revenue - Yoga Lessons 26,600.00 Cost of Goods Sold 211,510.00 Advertising expenses 9,000.00 Accounting fees 21,500.00 Bank Fees 411.00 Depreciation - Freight 5,450.00 Electricity - Insurance 36,000.00 Interest expense - Rent - Sales and marketing expenses 73,400.00 Telephone and internet 1,550.00 Wages and salaries 156,250.00 Motor Vehicle expenses 18,950.00 1,067,309.00 1,067,309.00 Goods and Services Tax (GST): Sales and Purchases GST of 10% is charged on all revenue and is charged at 10% on all purchases of inventory. For all business expenses other than bank charges, wages and superannuation, the business pays GST of 10%. All in-store sales (either EFTPOS, Credit Card or Cash) are effectively cash sales. Cash is banked every day as there is an express Virtual Bank facility located next door to the