Reference no: EM132385047
22566 Small Business Management and Accounting
Month end Adjustments as at 31 July.
1. Shop Fixtures and Fittings are depreciated at 15% per annum straight line method, (50% to S1 and 50% to S2) - (Calculate annual Depreciation using 365.25 days in the year and then calculate the relevant Month's Depreciation)
2. Motor Vehicles are depreciated at 30% per annum, reducing balance method, (50% to S1 and 50% to S2) - (Calculate annual Depreciation using 365.25 days in the year and then calculate the relevant Month's Depreciation)
3. Sales commission earned by retail assistants, but not paid at the end of the month are to be accrued at the rate of 5% of sales for each shop.
4. Prepaid insurance as at 1 July being $22,000.00 represented the premium paid on annual policy starting on 1 May 2019. Insurances are split 50/50 between stores and are expensed using months (not days). That is, if insurance is $12,000 for the year, then it is $1,000 per
month.)
5. The company's short term loan and long term loan are at 7% pa and interest is to be accrued for July and split 50/50 between the 2 stores. (Calculate annual Interest Rate using 365.25 days in the year and then calculate the relevant Month's Interest rate)
6. Accrued electricity for July for S1 is $850.00 and S2 is $700.00.
7. Accrued wages at the end of July amounted to $1,800 for S1 and $1,200 for S2.
8. Superannuation on Wages & Salaries incurred during the month of July (including the accruals at month end) will need to be accrued at the rate of 9.5% of Gross Wages & Salaries for each store.
9. Adjust the provision for Doubtful Debts to be equal to 5% of Accounts Receivable as at 31 July (allocated equally between S1 and S2.
10. Office Supplies and Stationery on hand at the end of the month amount to $1,200. Office Supplies and Stationery usage is allocated 50% to S1 and 50% to B2.
11. Prepaid rent at the start of the month relates to rent for the two shops for July to be allocated 60% to S1 and 40% to S2.
12. 31 July At the end of the month, after the depreciation charge was made for the month, the company sold Shop Fixtures and Fittings which had a written down value of $4,200 at the time of sale, for $4,950.00 cash. The Shop Fixtures and Fittings had originally cost $10,000.00, and it was used at store S1.
SUGGESTED SEQUENCE for Assignment Completion:
1. Set up the business using MYOB.
2. Create the chart of accounts.
3. Setup jobs representing each store.
4. Enter Opening Balances in the General Ledger.
5. Set up debtors accounts, assign your chosen name and address for each debtor.
7. Set up creditors accounts, assign your chosen name and address for each creditor.
8. Set up inventory accounts assign your chosen product names.
9. Enter opening balances of debtors, with correct aging. Check to see that it equals to the control account in the general ledger
10. Enter opening balances of creditors, with correct aging. Check to see that it equals to the control account in the general ledger
11. Enter opening balances of inventory. Check to see that it equals the control account in the general ledger
12. Process transactions as given for July using the appropriate MYOB program module.
13. Printout all relevant reports as listed below.
Attachment:- MYOB MAJOR ASSIGNMENT.rar