Reference no: EM132360611

Part A

You are working as an accounting in a local accounting firm. You have been approached by Oliver and Sydney, the owners of Jingles, a start-up wholesaler. They have chosen Xero as their cloud based accounting system and have employed you to set up their company in Xero and enter the first month's transactions.

You are required to enter a range of transactions and generate the reports requested by your client to assist with the startup of their business. All information has been supplied by the business owner for you to input. The set up and transactional data is available in Interact Resources.

Task requirements:

Process your clients' transactions for July 2019. Generate and submit the following reports to your client for the month of July 2019;
1. Profit and Loss
2. Balance Sheet
3. Trial Balance
4. Aged Payables (detail)
5. Aged Receivables (detail)
6. Inventory Item Summary.

Part B
Oliver and Sydney have owned and managed a range of businesses and have experience in reviewing and using the financial reports you have generated. Due to time pressures, they are paying your firm to produce a monthly report discussing the performance of their product lines (inventory items) for their first month of operation. To address this requirement, you are required to prepare an Executive Summary to be included with the July 2019 reports for Oliver and Sydney. Your executive summary should address the following:

1. An analysis of the relative performance for each of their product lines.

2. At least 2 recommendations relating to their product lines.

The marks assigned for both parts of this assessment include correctness of information and presentation of your reports. Your report needs to look professional, as though it could be provided to your client.

1 The name of your organisation is Student Number - Client Name

2 In the Chart of Accounts, your bank account should be account code '600' and named: 'Cash at bank - #Student number#'. When setting up your bank account, you can make up the name of your bank, BSB and Account Number

3 The following accounts needs to be set up in the Chart Accounts for your client:

Account Code	Name	Type
240	Sales - Accessories	Sales
250	Sales - Clothing	Sales
340	Cost of Sales - Accessories	Direct Costs
350	Cost of Sales - Clothing	Direct Costs
650	Inventory - Accessories	Inventory
660	Inventory - Clothing	Inventory
730	Furniture and Fittings	Fixed Asset
910	Business Loan	Non-current Liability

4 Your clients Conversion Date date is 30 June 2019.

5 The Opening Balances for your client are:

Cash at bank	70,000
Owners Contribution	25,000
Long Term Bank Loan	45,000

6 You need to set up the following inventory items (note, make sure you 'track' each of these items)

Code	Name	Buy	Sell
A1001	Backpacks	$13.75	$55.55
A1002	Sunglasses	$13.20	$49.50
A1003	Hats	$11.55	$44.00
C1001	Tops	$22.00	$33.00
C1002	Pants	$24.20	$36.30
C1003	Shorts	$19.80	$29.70
C1004	Jumpers	$24.20	$36.30

7 The default due dates for your client are:
- Purchases due 30 day(s) after the end of the bill month
- Sales due 30 day(s) after the invoice date
- The exception is the trading terms for AA Advertising, which need to be changed to 50 days after the bill date

8 The invoice auto prefix for Sales should be 'SI-' with the next invoice number being 1000001

9 Purchases auto prefix should be: 'PO-' with the next invoice number being 5000001

Now that you have set up your Clients Accounts, you are read to enter your clients transactions for their first month of operation. The hints and tips below will help you with this.

Hints and Tips when entering your transactions

- You will need to purchase inventory prior to selling.
- The 'Amounts' are 'GST inclusive as Applicable'. If you are not sure if an amount is subject to GST, have a look at the ATO website to determine if that items would normally be subject to GST.
- Be careful to enter all set up details accurately. You may wish to enter some of your transactions and check the figures have pulled through into the financial statements correctly before you continue entering all of your transactions.
- Ensure that you complete all of the set up steps above before you enter any transactions
- When running reports for your client, ensure that you run the exact reports that they have requested

Please ensure that you have read and completed the set up instructions and read the Hints and Tips prior to entering any transactions for your client.

Date	Type	Summary	Contact	Amount (GST Inclusive as applicable)	Account	Date Paid
01.07.19	P	Purchase of Display Cabinets and Shelving	Office and More	$                   22,000	Furniture and Fittings	25.07.19
01.07.19	P	Purchase of Office Equipment	Office and More	$                     3,960	Office Equipment
01.07.19	P	Purchase of Stationery	Office and More	$                     1,430	Printing and Stationery	25.07.19
01.07.19	P	Purchase of Computers and Cash Register	Computers Plus	$                     9,570	Office Equipment
02.07.19	P	150 x Tops, 50 x Jumpers	Sports and More	Auto	Auto	15.07.19
02.07.19	P	100 x Backpacks, 100 x Sunglasses, 100 x Hats	Adventurers	Auto	Auto	22.07.19
03.07.19	P	100 x Jumpers, 100 x Shorts, 100 x Pants	Sports and More	Auto	Auto	31.07.19
04.07.19	S	10 x Backpacks	Cash Sales	Auto	Auto	04.07.19
04.07.19	S	25 x Hats, 30 x Sunglasses	Get Away	Auto	Auto	15.07.19
05.07.19	S	50 x Shorts	Travel Plus	Auto	Auto	31.07.19
08.07.19	S	20 x Jumpers, 20 x Pants	Travel Plus	Auto	Auto	22.07.19
09.07.19	P	100 x Backpacks, 100 x Sunglasses, 100 x Hats	Adventurers	Auto	Auto	31.07.19
10.07.19	P	100 x Jumpers, 100 x Shorts, 100 x Pants	Sports and More	Auto	Auto	31.07.19
10.07.19	S	50 x Backpacks, 50 x Sunglasses, 50 x Hats	Get Away	Auto	Auto	22.07.19
11.07.19	S	80 x Jumpers, 20 x Shorts, 100 x Pants	Get Away	Auto	Auto	22.07.19
12.07.19	S	10 x Backpacks, 50 x Sunglasses, 50 x Hats	Sports Hut	Auto	Auto	22.07.19
15.07.19	P	Staff Wages	Staff Wages	$                     2,100	Wages and Salaries	15.07.19
15.07.19	P	Monthly Rent	National Real Estate	$                     3,300	Rent	15.07.19
16.07.19	S	25 x Hats, 25 x Jumpers, 20 x Sunglasses	Cash Sales	Auto	Auto	16.07.19
17.07.19	P	250 x Backpacks, 150 x Sunglasses, 50 x Hats	Accessories Plus	Auto	Auto
18.07.19	S	100 x Hats, 300 x Backpacks, 50 x Sunglasses	Travel Plus	Auto	Auto
19.07.19	S	60 x Pants, 60 x Tops	Cash Sales	Auto	Auto	19.07.19
22.07.19	S	20 x Backpacks, 25 x Jumpers, 20 x Shorts, 20 x Pants	Sports Hut	Auto	Auto
24.07.19	P	100 x Backpacks, 100 x Sunglasses, 100 x Hats	Adventurers	Auto	Auto
24.07.19	S	20 x Backpacks, 30 x Sunglasses, 25 x Jumpers	Travel Plus	Auto	Auto
25.07.19	P	Advertising	AA Advertising	$                     4,290	Advertising
29.07.19	S	20 x Sunglasses, 10 x Jumpers	Adventurers	Auto
30.07.19	S	20 x Jumpers	Cash Sales	Auto		30.07.19
31.07.19	P	Staff Wages	Staff Wages	$                     2,000	Salaries and Wages	31.07.19
31.07.19	S	130 x Backpacks, 20 x Tops, 50 x Hats, 10 x Tops	Sports Hut	Auto	Auto