Assignment Introduction:
In this assignment,the students are required to use the sets of BusinessData given to complete the tasks required, which include:
BusinessData:
The business is a Home Furniture Retailer which buys from suppliers and sells to other retail businesses. The business name is “Student Name Furniture Pty Ltd” (students are to insert their name)andislocatedatYourAddress -SydneyNSW2000.Thebusiness’salesarebothover-the- counter cash and credit to well-known customers.
| CompanyName | Address | ABN | Current FinancialYear | StarterChart |
“Yourname” FurniturePtyLtd | YourAddress | Yourstudent Number | 2022-23 | Wholesale Furniturestore |
FinancialYear:1stJuly2022–30thJune2023
TransactionSources:
Cashregisters–forcashsalesInvoices–forcreditsales EFT Transfers - for cash payments
CashRegister–forcashreceipts
Bankstatements–fordirectchargesanddirectdeposits Supplier invoices – for goods and services
Workingpapers–foradjustingandmiscellaneousentries
GST
PleasenotethatGSTfreeitems arebankfees,salariesandwages,commissions,interestexpense, superannuation, and fines. Adjusting entries (Accruals) do not incur GST.
AllothertransactionsincurGST.InvoicesfromSuppliersincludeGST.Productsalepricesdonot include GST. Thismeans you must calculate the GST and add it to the quoted prices on all sales.
Balancesasof1July2022
TRIAL BALANCE YOURNAMEFurniturePtyLtd as of 1 July 2022, | ||
| Account | Dr($) | Cr($) |
| CashatBank | 30,500 | |
| AccountsReceivable | 33,000 | |
| Inventorycontrol | 46,500 | |
| PrepaidInsurance | 30,000 | |
| ShopFixturesandEquipment | 180,000 | |
| AccumulatedDepreciation-ShopFixt&Equip | 60,000 | |
| AccountsPayable | 21,500 | |
| GSTpayable(collected) | 18,000 | |
| GSTreceivable(paid) | 12,000 | |
| AccruedExpenses(e.g.,CommissionPayable) | 15,000 | |
| PAYGWithholdingTax | 2,000 | |
| Provisionfordividend | 9,000 | |
| Loan–noncurrent | 100,000 | |
| Issuedandpaid-upcapital | 65,000 | |
| RetainedEarnings | 41,500 | |
| Total | 332,000 | 332,000 |
Customers:
| AccountsReceivableControl | ||
| CustomerCode | BalanceOutstanding$ | DaysOutstanding |
| C01 | 13,000 | 30 |
| C02 | 6,000 | 60 |
| C03 | 6,500 | 30 |
| C04 | 7,500 | 10 |
| Total | 33,000 | |
Suppliers:
| AccountsPayableControl | ||
| SupplierCode | BalanceOutstanding($) | InvoiceDate |
| S01–TradingGoods | 5,000 | 1st June |
| S02–TradingGoods | 2,500 | 5th June |
| S03–TradingGoods | 8,500 | 7th June |
| S04–TelephoneCo | 1,000 | 12th June |
| S05–Stationery | 500 | 15th June |
| S06–AdvertisingCo | 1,700 | 16th June |
| S07-Electricity | 2,300 | 30th June |
| Total | 21,500 | |
BesuretoenteranABNnumberforeachsupplierwhencreatingtheSupplier’saccount
otherwisetherearetaxationimplications.
Inventory:
| Inventory Control | ||||
| ProductCode | QuantityonHand | Unitcost | Valueof Inventory | UnitSell Price ExcludingGST |
| P01-DiningChairs | 135 | $100.00 | $13,500 | $180.00 |
| P02-DiningTable | 12 | $600.00 | $7,200 | $1,000.00 |
| P03-OfficeDesk | 40 | $150.00 | $6,000 | $300.00 |
| P04-Officechair | 40 | $120.00 | $4,800 | $240.00 |
| P05-CoffeeTable | 50 | $300.00 | $15,000 | $600.00 |
| TOTAL | $46,500 | |||
Datasource-Suppliers’Invoices.
Dates shown are invoice dates, amounts include GST.
| Date | Credit Purchases |
| 1st Jul | Received invoice from S01for11Dining Tables-stock item P02,for$7,260. |
| 2nd Jul | Received invoice from S03for10 CoffeeTables-stock itemP05,for$3,300. |
| 7th Jul | Received invoice fromS02,for30 Office Desks–stock itemP03,for $4,950. |
| 14th Jul | Received invoice from S05 for Stationary $385. |
| 24th Jul | Received invoice from S04 for telephone for the month $660. |
| 26th Jul | Received invoice from S06 for advertising undertaken in July $715. |
| 26th Jul | Received invoice from S01 for 100 dining chairs -stock itemP01,for$11,000. |
Data source–sales invoices and cash register tapes.
Salesinclude GST.
| Date | Cash Sales |
| 1stJul | Sold6 unitsofP01 |
| 10thJul | Sold 4 units of P01and1unitofP02 |
| 26thJul | Sold5 units of P03 and 5 units of P04 and 3 units of P05 |
| Date | Credit sales |
| 6thJul | InvoicetoC01for50unitsofP01 |
| 10thJul | InvoicetoC02for30unitsofP01and5unitsofP02 |
| 19thJul | InvoicetoC03for25unitsofP03and20unitsofP04 |
| 27thJul | InvoicetoC04for15unitsofP05 |
Data source–deposit book(cash receipts)
The daily over-the-counter cash sales are banked the same day.Other receipts include payments by account customers, as follows:
| Date | Cash Receipts from Credit Customers |
| 18thJul | Customer C01paid$6,000.00 |
| 20thJul | Customer C02paid$7,000.00 |
| 21stJul | Customer C03paidforbalanceofheraccountasat30June,plusthe purchases during the month made priorto 20th July. |
| 31stJul | At the end of the month, after the depreciation charge was made forthemonth, the business sold old Shop Fixtures and equipment for cash for $5,500 (GST inclusive). The Fixturesand Equipment had awrittendownvalueof$2,000.00at thetimeofsale.TheFixturesandequipmentoriginallycost$18,000. |
Data source–EFT(cash payments)
| Date | Cash Payments |
| 4thJul | Paid sales commission owingtoretailassistantsof$15,000.00previouslyaccrued. |
| 9thJul | Paidbalanceasat1JulyowingtoS05. |
| 10thJul | Paidbalanceasat1JulyowingtoS06. |
| 15thJul | PaidJune’sPAYGwithholdingtaxof$2,000.00 |
| 17thJul | PaidS01thebalanceoftheaccountasat1July. |
| 27thJul | Paidbalanceasat1JulyowingtoS04. |
| 28thJul | Paidbalanceasat1JulyowingS02. |
| 31stJul | Theownersarepaid$9,000dividends,asprovidedinJune. |
Data source-Bank Statements
| Date | UnrecordedBankStatementsitems |
| 18thJul | PeriodicpaymentforleaseofPOSequipment$990.00forJuly. |
| 31stJul | Bankfeesof$110.00werechargedtotheaccount. |
Data source–notes and working papers–Month end adjustments (Accruals)
NoGSTon accruals.
| Date | Month end Adjustments(Accruals) |
| 31stJul | Shop fixturesandequipmentaredepreciatedat20%p.a.Straightlinemethodand theentryforJuly2021(being31daysofdepreciation)needstobemade. |
| 31stJul | Salescommissionearnedbyretailassistants,butnotpaidat31stJulyamountedto $12,000.00. |
| 31stJul | PrepaidInsuranceasat30June($30,000.00)representedthepremiumpaidon annualpolicystartingon1May2021.Recordtheinsuranceexpenseexpiredforthe month of July. |
| 31stJul | Thecompany’slong-termloanisat7.00%p.a.Interestispaidquarterlybutneedsto beaccruedforJuly(31 days). |
| 31stJul | EstimatedelectricityusageforJulyamountedto$2,100.00andthisamountisto be accruedasat31stJuly. |
YouarerequiredtouseMYOBAccountingProgramtorecordforallthebusinesstransactions and economic events relating to the business.
PartA Marking Rubric
| MarkingTemplate Case study | VeryPoor | Poor | Satisfactory | Good | Verygood | Comments |
| Recordthemonthlytransactionsintothegeneraljournal | ||||||
| PostingjournalstotheLedger | ||||||
| UnadjustedTrialbalance | ||||||
| Recordtheadjustingentriesintothegeneraljournal | ||||||
| AdjustedTrialBalance | ||||||
| GST | ||||||
| Summarycomment: | ||||||
PartB Marking Rubric
| MarkingTemplate Case study | VeryPoor | Poor | Satisfactory | Good | Verygood | Comments |
| Setting-upthebusiness | ||||||
| Modifythechartofaccounts | ||||||
| EntertheOpeningBalancestotheGeneralLedgerandset up the subsidiary ledger for Customers, Suppliers and Inventory. | ||||||
| Processtransactions | ||||||
| Recordtheadjustingentriesintothegeneraljournal | ||||||
| RequiredReportsProduced | ||||||
| Summarycomment: | ||||||
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