Reference no: EM132585750

AYN416 Financial Accounting Processes Assignment - QUT Business School - Queensland University of Technology, Australia

This assessment item assesses the following learning outcomes:

Knowledge & Technical Skills (KS)

1.2 Apply technical, technological and technical research skills to organise and interpret discipline knowledge, including theory and practice, to investigate business issues.

Higher Order Thinking (HO)

2.1 Critically investigate real world business issues and problems drawing on analysis, evaluation and synthesis of discipline knowledge, including theory and practice.

Integrated Accounting Project -

Objectives: The objectives of this project are for students to demonstrate:

1. Skills and knowledge in the preparation of manual financial statements.

2. Incorporate use of a computerised accounting package.

3. Compare and reconcile the manual and computerised financial statements.

This Accounting Project consists of completing the accounting cycle for a sole trader retail business for April 2018 using both manual records and Reckon accounting software.

Requirements - The Assignment comprises three (3) compulsory parts -

Part A EXCEL Accounting Task Instructions

1) Open up the Excel student template provided on Blackboard and enter your name and student number into the footer section on the first tab (Chart of Accounts)

2) Record the April transactions in the following journals: cash payments, cash receipts, purchases, sales and general journal. (Opening balances at 31 March have been entered into the general ledger and subsidiary accounts).

3) Postings are done either daily or monthly. Post daily to the subsidiary ledgers. Post daily from the general journal. Post the monthly totals of the special journals to the general ledger. Include posting references in the journals. (There will be only 2 postings to ANZ Bank Account - total receipts and total payments).

NOTE: For posting reference purposes in the ledgers, please use the journal page numbers indicated next to the journal title (e.g. SJ18, PJ18, CPJ25, CRJ17, GJ62, GJ63, and GJ64).

4) Prepare a trial balance as at 30 April 2018, in the trial balance columns of the worksheet.

5) Complete the worksheet using the required adjusting entries below for the month of April:

A) Accrued Wages

Wages owing as at 30 April are $3,300.

B) Insurance

Noted in the transactions above, Lauren prepaid 12 months of insurance on April 4.

C) Depreciation - Store Equipment

Annual Depreciation on Store Equipment has been calculated at $5,616.

D) Depreciation - Computers

Annual Depreciation on Computers has been calculated at $6,840.

E) Office Supplies Expense

On 30 April, Lauren performed a stocktake of office supplies and noted that there was $370 of supplies remaining.

6) Prepare and post the adjusting entries.

7) Prepare the following statements for month ended 30 April in accordance with AASB 101:

- a classified income statement classified by business function (expense classification below)

- a statement of changes in equity, and

- a classified statement of financial position (or balance sheet) with comparative values as at 31 March. (Use separate columns for comparison of 31 March values with 30 April values).

There is a need to split Sales and Sales Returns separately in the manual system as discussed earlier.

For Income Statement business function expense classification, use the following information: Selling Expenses: Wages

Administrative Expenses: Depreciation - Computer Equipment, Depreciation - Store Equipment, Insurance Expense, Marketing Expense, Office Supplies Expense, Rent Expense, Telephone and Internet Expense, Utilities Expense

Finance Expenses: Bank Charges

8) Prepare and post the closing entries.

9) Prepare a post-closing trial balance and confirm whether the total of the subsidiary ledgers agree with the respective control accounts in the general ledger for accounts receivable and accounts payable.

Part B Reckon Accounting Task Instructions

1) Establish a new data base in Reckon.

Step 1 Company Information.

On the Reckon menu bar, click File > New company.

Click Start Interview

Enter Company Name and add your student number and surname and to the end of the company name. (e.g. Active Sports 9084574 Marsland). Leave other fields blank.

Note: Click Next at each step of the interview to move on.

Step 2: Select your industry. Select Product Sales/ Retail

Step 3: How is your company organised? Select Individual Tax Return

Step 4: Select the first month of your financial year. Select: July

Step 5: Ignore passwords

Step 6: Create your company file, indicating a directory to save to. Click Save.

Step 7: Customising

2) Set up preferences for banking for all receipts and payments to process to the ANZ Bank Account (otherwise they will default to Undeposited Funds).

3) Important: Set up user for Audit Trail Log to enable production of an Audit Trail Report.

Click on Company. Click on Set Up Users. Click on Add User.

Enter your student number followed by your surname (e.g. 9084574 Marsland). Record exactly what you have typed safely as you will use it to log in and record all of the assignment transactions. Do not enter Passwords. Click Next. Click No that you do not want to enter a password. Click on All Areas of Reckon Accounts (for the user to enable access). Click Yes to confirm that you do wish to allow the user to access all areas of Reckon. Click Finish. Click Close.

4) Choose the option File/ Close Company/(Log Off and Open the Active Sports.QBW File that you have established. Now log into Reckon using the User Name that you established earlier.

5) Run an Audit Trail Report 1/1 to today's date to ensure that you can see your User Name in all the transactions (not the Admin user). If you fail to submit an Audit Trail Report or submit an Audit Trail with the Admin user only recorded, you will receive 0 for the Reckon component.

6) Enter opening balances for all other accounts as at 31 March 2018.

7) Run a trial balance as at 31 March 2018 to ensure all opening balances are accurate. Process a general journal entry to correct the items in the trial balance which require adjustment including an entry to correct Uncategorised income, Uncategorised expenses and Opening Balance (equity).

8) Save your file. Also, backup your Reckon file using the Save Copy or Backup function (which will name it with the extension.QBB).

9) Record the April transactions in Reckon, opening new accounts as necessary. For Reckon, you do not need to use the account numbers provided in the Chart of Accounts.

10) Prepare a trial balance as at 30 April 2018 and ensure all account values agree to the unadjusted manual trial balance prepared in Part A except for Sales and Sales Returns. (Reckon Trial Balance total should be $228,057 as Sales Returns is netted off against Sales in Reckon not displayed separately as it is in Excel). Note that there is no ability in our Reckon student version software to record Sales Returns separately. Instead the software will process a sales return as a reduction from Sales Revenue. Do not create a separate Sales Returns account in Reckon.

11) Process the adjusting entries above in Reckon.

12) Print to pdf the following reports from Reckon. Combine into 1 pdf or zipped folder of 8 Reckon reports if possible for ease of marking. Please name your report files for submission to Blackboard with a file name less than 12 characters so that we can download them for marking.(e.g. TB.pdf).

Part C Reckon Accounting Task Instructions

Ensure all reports agree with manual reports generated in Part A (except for different treatment of Sales Returns in Reckon as Sales Returns is netted off Sales in Reckon not displayed separately as it is in Excel.)

Note that there will be minor differences in the naming used in Reckon (e.g. Trade Receivables, Trade Creditors and Tax Payable have equivalent names to the Excel Chart of Accounts and don't need to be altered).

Similarly, the order of accounts must be logical and in the correct categories within Current Assets, Fixed Assets, Current Liabilities and Equity. Ensure that the Balance Sheet displays Original Cost of Fixed Assets above Accumulated Depreciation and that Capital displays above Drawings. (These can be altered in the Chart of Accounts as demonstrated in the sample exercises).

In Reckon, there is no need to remove accounts with a zero balance as they are fine to leave as they are.

For Reckon, you do not need to use the account numbers provided in the chart of accounts.

Specifically, check the following four items to ensure they are the same in both Excel and in Reckon:

1. Gross Profit

2. Net Income or Net Profit

3. Total Assets

4. Total Equity

Attachment:- Financial Accounting Processes Assignment Files.rar