Reference no: EM131051752 , Length:

Only question 1 and 2 needs to be done. question 1 is based on a small scale organization and not a big organization.

Question One

Selection of Accounting Software

Accounting professional are often asked by clients for advice on choices for accounting software. This question concerns ascertaining a business' requirements and preferences, and preparing a report with your recommendations.

Required:

a) Contact a small business and prepare questions to determine requirements and expectations of an accounting system. Provide the questions and brief details of the business owners responses.

b) Prepare a report with your suggestion for an appropriate software solution for the business. Use your experience with MYOB, Reckon and another alternative, along with research, to compare their suitability. Your reasoning and depth of comparison will be what is assessed, not the particular software chosen.

c) Prepare a PowerPoint presentation that summarises your findings and recommendation. The PowerPoint slides must utilise at least three advanced PowerPoint features. Each student will conduct their class presentation in the final class, Friday 20th May.

Note:

1. The name of the company, with contact details, is to be provided in part a)

2. There will be a discussion opened on Moodle for each student to list the name of the business they are interviewing. Only one student can interview each business - first in best dressed.

3. Any references (websites, magazines, books) are to be listed in an Appendix following the report.

Question Two

Single Entry Accounting Systems

Amazeballs maintains a good set of records but is preparing to convert to a full double-entry system. He provides you with the following information from his records:

Assets and liabilities at the start and end of 2015 financial year. The numbers marked with a "?" do not need to be calculated - they have been omitted to stop you cheating to calculate the profit figure.

Amazeballs Statement of assets and liabilities
	1/7/2014	30/6/2015
	$	$
Assets
Cash at bank	21 300	209 030
Trade debtors	11 000	51 000
Trading stock	12 100	27 500
Prepaid Insurance	8 500	10 200
GST Paid	0	?
Shop Equipment - at cost	85 000	65 000
Accumulated depreciation	(40 000)	(36 100)
Total Assets	$97 900	?
Liabilities
Trade creditors	8 600	30 800
Accrued Wages	3 000	11 200
Revenue Received in Advance	0	1 000
GST Collected	0	?
Total liabilities	11 600	$88 200
Net assets	$86 300	?
Owner's equity
Capital - M McMillan	$86 300	$86 300
Plus Profit
Total owner's equity	$86 300	?

	Total	GST	Net of GST
Cash received and paid during the year	$	$	$
Receipts
Received from accounts receivable	317 500		317 500
Cash sales for the year	115 500	10 500	105 000
Sale of equipment	11 000	1 000	10 000
Rental revenue	13 200	1 200	12 000
Payments
Payments to accounts payable	101 000		101 000
Cash purchases	20 570	1 870	18 700
Wages paid	83 000		83 000
Insurances paid	19 800	1 800	18 000
Other expenses	45 100	4 100	41 000

Additional information:

- the sale of equipment was an item that cost $20 000 (excluding GST) and had been depreciated to $11 000 at the time of sale. No further depreciation applied to this item.

- depreciation on other equipment is 15% x written-down value

Required:

Using the information provided above, complete the Income Statement.