Reference no: EM132296458

Task - Information Description

An accounting simulation in which you will develop skills to use computer software to identify, analyse and solve problems using accounting knowledge to complete the accounting cycle which examines a business involving a sole trader or partnership, inventory with limited number of products, minimal non-current assets and depreciation.Business Scenario and InstructionsArborGear - Business Background

Introduction
At 1st June 2018, T Parkes established a new proprietorship, ArborGear, a GST- registered tree lopping equipment business that sells equipment to the general public. As well, the business provides training in the safe use and maintenance of its equipment. The business sources its stock from a number of suppliers.

Adjustments for end of financial year 2018

The stocktake on 30 June revealed $820 worth of supplies on hand.

The next wages payment will occur on Thursday 5 July for the employee earnings in the final week of June. B Safe worked earned $994 between 25th and 29th June; D Green worked a usual week.

Calculate the amounts for depreciation expense for each of the two types of non-current Assets: trailer and vehicles (Estimate expense as though assets held for whole of month of June. You can use the depreciation schedule in the template or calculate manually.)

Calculate and record the adjusting entry for phone & internet for the end of the month given that June phone & internet paid in advance has been used up.

Calculate and record the adjusting entry for insurance for the end of the month given that June insurance paid in advance has been used up.

Calculate the Allowance for Doubtful Debts based on 6% of accounts receivable at the end of the year and make the necessary adjusting entry.

Accounting Requirements and Instructions

Spreadsheet software

The file on the course Blackboard site (ACC106 Task 2 Student Templates) contains a series of worksheets that you should use to complete the requirements below. Make changes as required including formulas and links.

Completing the Accounting Cycle

Record all the business transactions from section 3 above in the relevant special journals using EXCEL formulas as appropriate (eg for GST calculations), and linking as required. All transactions involving inventory, MUST be first entered in the Inventory Record, then linked to the relevant journals.

All transactions involving accounts receivable and accounts payable MUST be made in the schedules in the SubLedger AR AP, as well as the relevant journals.

Post the Account totals from each of the special journals to the relevant ledgers in the General Ledger, using EXCEL linking function. You will need to create additional accounts in the General Ledger. Use the accounts listed in the Chart of Accounts and

enter names of the ledger accounts as required. In the ledger, use formulas to create running totals. DO NOT POST ADJUSTMENTS yet.

Use the Reconciliation tables in the Inventory Record and Sub Ledger AR AP to reconcile the totals from inventory, accounts receivable and accounts payable with the final balances from the General Ledger. Use the linking function to do this in the Inventory Record and Sub Ledger.

Prepare the Trial Balance as at 30 June 2018 by linking balances from the ledger accounts to the Trial Balance. By linking, it will be a ‘Live' Trial Balance but at this point it is an Unadjusted Trial Balance as the Adjustments have not yet been posted. When completed, check the debit and credit columns are equal in the Trial Balance. Then copy and special paste (as values only) the Trial Balance into the Worksheet columns ‘Unadj Trial Balance'. In the Worksheet, the figures in these columns should not change as they are raw figures. (Tip: Use Paste Special to paste in as values.)

Record the end of year Adjustments, (listed above at section 4) in the Worksheet and complete the Worksheet by calculating balances in the Adjusted Trial Balance columns. Use simple formulas in EXCEL to make these additions and subtraction. Then complete the Income Statement and Balance Sheet columns in the Worksheet.

Record the Adjustments in the General Journal and post these adjustments to the General Ledger using new accounts as necessary. (This will change the figures in your Live Trial Balance which should now match the Adjusted Trial Balance figures in the Worksheet. Check this.)

Prepare the closing entries in the General Journal, and post these to the General Ledger. (As with adjustments, this will once again change your Live Trial Balance figures if you have linked correctly. NOW, your Adjusted Trial Balance figures in the Worksheet will NOT match the Live Trial Balance figures for the Revenue and Expense accounts and totals. The Live Trial Balance is now a post-closing Trial Balance.)

Remember: for closing, close revenue and expense accounts to the Income Summary Account, then close Income Summary Account to the Capital account and finally, close drawings to the Capital account.

Finally, prepare the Financial Statements for 30 June 2018 by copying or linking the appropriate figures into your Financial Statements. Refer to your textbook or course Learning Materials for guidance on the format of these Statements. For Balance Sheet, use the Classified Balance Sheet in report form as demonstrated on p.184 of the text; and Income Statement and Statement of Changes in Equity as demonstrated on p.240 of the text. (Note, for the Income Statement, there will be three revenue streams including sales discount. You must show Gross Profit as well as Net profit or loss. For the Balance Sheet, you must show net accounts receivable and look carefully at how non-current assets are presented.)

Attachment:- Business Scenario and Instructions.rar