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:

4 Your clients Conversion Date date is 30 June 2019.

5 The Opening Balances for your client are:

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

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.