Reference no: EM132380341
AYB221 - Accounting Systems and Analytics - MYOB Assignment, QUT Business School, School of Accountancy, Queensland University of Technology, Australia
Assessment of Learning Outcomes -
KS Knowledge & Skills (Technology) - Incorporate the use of technology appropriate to the discipline and content.
HO Higher Order Thinking - Exercise independent judgement and initiative in adapting and applying knowledge and skills for effective planning, problem solving and decision making in diverse contexts.
Assessment Purpose - This assignment is an individual assessment assessing your learning from the MYOB tutorials and Pabst & Perrin text by completing the February transactions and end of month processing. Accuracy of accounting information is important and the marking will be based on correct entries. This assessment will assist you to develop problem solving and judgement skills.
Part A involves preparing February MYOB accounts.
Part B involves a business report.
Business background -
As a graduate accountant, you will be preparing the accounts for Christian Blane who is the sole owner of a retail business, ETB Electronics which buys and sells general electrical goods and appliances. The business used to break even (where revenues covered the expenses) but over the last couple of years, a loss has been reported.
Christian needs your advice as to how the financial position of this business can be improved. The business does not operate on the weekend and the owner is wondering whether this should be considered to boost sales.
ETB Electronics is registered for Goods and Services Tax (GST) with the ATO and business dealings are under the Australian Business Number (ABN) 90 188 211 144.
The accrual method of accounting is used and Christian has a perpetual inventory system, which records a continuous movement of inventory. In terms of accounts receivable, most of the customers are given a discount for prompt payment and terms vary from 7 to 30 days. Regarding suppliers, ETB Electronics receives a discount if payment is made early on outstanding invoices.
Christian works in the store along with a salesperson, Larissa Thomas (retail sales) who works Mondays to Fridays and is paid for the fortnight just worked (up to and including) the Friday. Larissa worked 8 hours a day in February - she is currently the only employee (other than Christian). Tax is deducted from her wage (PAYG) and is remitted to the ATO quarterly. Christian is aware that he should use a Payroll module to process pays, however he does not have the time and funds to implement this. Larissa's wages are paid fortnightly via a cheque. Larissa is entitled to superannuation at 9.5% of her gross wages for the month of February. An end of month journal entry will need to reflect this accrual.
In terms of end of month processing, Christian prepaid rent at the start of the financial year. Prepayments are recorded as assets and the portion used for the month (expense) is recorded in the general journal as an adjusting entry. There was a wages accrual processed in the accounts at the end of January 2019, which was estimated to be $1,350. Reversal entries for wages accrued are done at the start of February. Depreciation of furniture and fixtures is calculated using a straight line rate of 10%. Christian also wants to expand the business and took out a $35,000 business loan which was drawn on the 26th February 2019. The first interest payment is to be made in March. An adjusting entry is to be recorded in the general journal to record the interest expense that has been incurred in February but not yet paid.
The St George business saver account is mainly used for payments other than petty cash. The petty cash account is used for staff amenities and postage stamps. The account needs to be reimbursed to $50 prior to the end of month. Christian has a Mastercard that is used for small purchases or other miscellaneous payments.
PART A: PROCESSING TRANSACTIONS
You do not need to create a MYOB file for this assignment. Download and use the ETB Electronics.MYO file that is provided to you on Blackboard under Assessment (DO NOT USE YOUR MYO FILE FROM THE TUTORIALS).
1. When you log into ETB Electronics for the first time you will need to use "Administrator" as the user ID. Then immediately create a new user ID with your student number (see Tutorial Activity 1). Use your student ID the next time you log in and ensure audit trail tracking is ticked under security preferences (see Tutorial Activity 1)
2. Enter the February 2019 transactions.
3. Prepare End of Month Adjusting Entries for 28 February 2019.
4. Perform the Bank Reconcilation at 28 February 2019.
5. Once you have entered all the assignment transactions for February 2019, import the budget data text file in the same manner as what you did in the tutorial. You have been provided a different budget text file on Blackboard under Assessment (DO NOT USE THE BUDGET DATA TEXT FILE FROM THE TUTORIALS)
6. Upload the completed ETB Electronics myo data file and audit trail in the submission area on Blackboard.
7. Prepare a Business Performance Report using the proforma provided on Blackboard. Submit the report via Turnitin.
8. Complete the required $ account balances for the requested accounts in the MYOB submission area on Blackboard.
PART B: BUSINESS PERFORMANCE REPORT
Christian has asked you to write a business performance report of 375 words (maximum), reviewing the following:
February's overall profitability and a discussion on the cash flow position: (Hint: use the Budget Analysis Report to discuss the profitability).
Product profitability and Pricing Analysis (Hint: use the Inventory Price Analysis Report and Analyse Sales Report)
Report on the revenue and gross profit of significant products; strong/weak inventory items.
Outline 4 major issues and provide recommendations
- Identify 4 major issues occurring in this business (you may have already mentioned some above and you can explain them here);
- Explain why the issues are problematic;
- How the issues arose; and,
- Provide 4 recommendations to the owner as to how he can reduce the impact of these issues based on the facts of the case.
Use the proforma template to address the above. No external research or references are required for this report.
Attachment:- Accounting Systems and Analytics Assignment Files.rar