Prepare an adjusted trial balance as at 31st december 2016

Assignment Help Financial Accounting

Reference no: EM131201948

Financial Accounting ASSIGNMENT

CASE STUDY DATA - BED HEAVEN

PART A MANUAL PREPARATION OF FINANCIAL RECORDS

Use the Bed Heaven Pro Forma Journals and Ledgers file to complete Part A of the assignment. This file contains the journals, ledgers, Adjusted Trial Balance, Statement of Changes in Equity, Statement of Financial Performance and Statement of Financial Position. Note that this file is supplied in "word" format so that you can adjust the columns or add ledgers if you wish to do so.

1. Using the information provided record all transactions for the month of December in the appropriate:
a. General Journal and then

b. The general ledger (note it is optional to complete subsidiary ledgers, however it is recommended as they will assist you)

2. Please acquire a thorough understanding about the recording process before you enter transactions (please refer the relevant lecture and tutorial material and the text book for further information).

3. You are then required to record the end of month balance day adjustments in the general journal and post to the relevant general ledger accounts.

4. Prepare an adjusted trial balance as at 31st December 2016, i.e. after posting all balance day adjustments. If the trial balance does not balance do not proceed until it does.

5. You are not required to produce general ledger closing entries as it is not the end of the financial year but for your own purposes you may find it useful to prepare the closing entries.

6. Prepare an Income Statement for the month ended 31st December 2016, Statement of Changes in Equity for the month ended 31st December 2016, and a Statement of Financial Position as at 31st December 2016.

PART B PREPARATION OF FINANCIAL RECORDS USING XER0
In part B you process the same transactions using Xero. Xero is a cloud-based computerised accounting package. There are detailed video instructions on creating your Xero file and recording transactions in Xero available on CloudDeakin. It is highly recommended that you watch these before undertaking Part B.

note: you will have a free 30 day access to Xero. Do not create your Xero file until 12th August 2016.

1. Using your internet browser click on https://www.xero.com/au/teaching-accounting/

2. Complete the required information.

3. Xero will send you an email which allows you to activate your account.

4. Once you log onto Xero, Select Settings, General Setting, Organisation Setting

5. Complete the following information:
Display Name: Bed Heaven Your name (For example Bed Heaven Tracey McDowall)
Legal Trading Name: Bed Heaven Your name (For example Bed Heaven Tracey McDowall)
Line of business: Retail
Organisation type: Sole Trader
ABN: leave blank
The reminder of the form does not need to be completed for the purposes of the assignment.

6. Return to General Setting, click Chart of Accounts. Xero has suggested a range of accounts for your use. The account names may be slightly different to those in your manual set of accounts. This is okay, you do not need to standardise the names. Additional accounts will need to be added. To add new accounts, Click on new accounts and complete the necessary information.

7. Return to General Settings and select financial settings. Check that the financial yearend is 30 June. The tax defaults for both sales and purchases should read "tax inclusive". Change these details if necessary.

8. Return to general settings.

9. Select Conversion Balances. Click on conversion date and change the month to December (this means you will enter the opening balances based on the 30 November closing balances). Save.

10. Click on Add Comparative Balances (if necessary click on "Show all accounts"). Enter the opening balances by account from the opening Statement of Financial Position in the appropriate debit/credit column. Xero operates with only one GST account - "GST
Clearing", a current liability. Please net the GST Receivable and GST Payable account when entering the opening balances in Xero. Make sure the opening balances debits and credits are equal to each other. Save.

11. A new window will open that requires you to enter the opening balances for individual debtors and then creditors. Enter each debtor, the amount owning and the date of the transaction. Repeat for creditors.

12. Go to Accounts, Select inventory. Click on Add new item and create each inventory account. Then import opening inventory balances using the wizard available in Xero.

You are now ready to start entering the transaction data into Xero. You should record transactions in date order. This is critically important for any inventory transactions (sales and purchases) as Xero calculates the value of inventory using the moving weighted average method. It is easiest to enter sales, purchases and cash transactions through the dashboard.

Attachment:- Assignment-2-Part-2-instructions-.rar

Reference no: EM131201948

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