Reference no: EM132647886

ACC1AIS Accounting And Information Systems - La Trobe University

This assignment requires you to create a new business, input transactions, and generate financial statements and reports using Xero. This assignment question sheet should be used in conjunction with the weekly Xero help-sheets which explain in more detail the steps required to complete the transactions below.

Task Overview

The company for which you will be working in this assignment distributes, sell and repairs bicycles. You will be recording transactions for the month of September 2020.

The assignment contains five separate sections, one for each accounting period during month of September. You should work through these sections sequentially. Once you have completed all the transactions you should prepare the requirements listed on page 12.

Set up Company

Your first task is to set up a new business in Xero - you must use your Student ID Number and FULL Name as the Business name. You will be doing this assignment via registering for a trial company and not using the Demo company.

Adjusting Journal Entries

30th September

This is the final day of the calendar month, and your main task is to prepare the month end accounting entries. For any adjustments required you will need to prepare a general journal entry.

The adjusting journals that you will need to enter are as follows - round to TWO decimal places:
1. Interest expense - short-term loan (Northern Bank).
2. Insurance expense - product liability insurance policy (Society Insurance).
3. First month of subscription revenue earned from the company featured magazine, "RideOn".
4. You completed 30% of repairs for Gocycle during September.
5. Office supplies on hand at 30th September is $275 incl. GST.
6. Depreciation expense - welding machinery, using the units of production method.
7. Interest earned at month end.
8. Record the adjusting entry for fuel bill payable of $165 incl. GST from Apache Petrol for the final period i.e., period 5.
9. Advertising expense amount for the month of September.
10. Provision for warranties is equal to 5% of sales.
11. You realise that the economy has significantly deteriorated which is observed through the number of customers' debts that are written off during this month. As such you decide to increase the allowance from 10% to 35% of the accounts receivable (as of 30th September 2020). Record the adjusting entry for the allowance for doubtful debts account at 30 September 2020.
12. Salaries expense accrued for September.
13. Warehouse rent expense accrued for September.
14. Depreciation expense Delivery Van, using the straight-line method.
15. Depreciation expense Store Building, using the straight-line method.
16. Interest expense accrued on the loan for Building of the Head Office.
17. 40% of deliveries are performed during September.
18. Telecommunication accrued for September.
19. Insurance expense, Fire insurance.

Note all month end adjusting journals must be dated 30 September 2020.

Assignment requirements (Please ensure all reports have correct dates)

1. A Trial Balance report dated 29th September 2020. This is your ‘unadjusted' Trial Balance. Use the classic version of the Trial Balance.

2. A Journal Report for 30th September 2020. An example from Demo Company is shown below.

Please note that: you MUST change the date from 30 September 2020 to 30 September 2020 and click onto "Show Posted Manual Journals Only". Students who submit a Journal report that includes all journals of the whole month of September 2020 may lose 50% of their mark for this deliverable.

3. A Profit and Loss (P&L) report for the period 1 September 2020 to 30 September 2020. Make sure that you illustrate the comparison between your September P&L with the previous month i.e., August. Use the classic version of the Profit and Loss.

4. A Balance Sheet report as at 30 September 2020. Make sure that you illustrate the comparison between your September Balance Sheet the previous month i.e., August. Use the classic version of the Balance Sheet.

5. A professionally presented short written business report (maximum 1,500 words) designed for an internal user of the accounting information. Your written report is required to be classified as below.

Written Report - Financial performance factors

Your report explains the financial results and performance of your company in September 2020. You are required to provide two discussion factors to analyse the financial performance of the company. These can be items taken from either balance sheet or profit and loss that you feel had an impact on the financial performance of the company. You are required to calculate ratios to support your discussion of each factor you have chosen tohighlight.

Your report explains how the company managed its inventories during September by providing an appropriate inventory report from Xero. You are required to indicate how many units of inventory is purchased and sold from each type of bicycles during September. How many units of inventories remain on hand from each type of bicycles at month-end, etc?

Your report explains how the company managed its Accounts Receivables and Payables during September by providing appropriate reports from Xero.

Written report - Benchmarking

You are required to compare the company results with that of at least one competitor as well with the average performance of the Bicycle Retailing and Repair Industry in Australia.

To compare the company results with a competitor, you require to use the annual reports of the competitor (e.g., Mountain Bike Australia) as your source for benchmarking purposes and compare your company with the competitor using at least two (2) benchmarkingratios.

To compare the company results with the average performance of Bicycle Retailing and Repair Industry in Australia refer to the IBISWorld Database. IBISWorld is available through the La Trobe University Library. Through IBISWorld you will be able to investigate the performance of Bicycle Retailing and Repair, investigate the industry operating conditions, industry outlook and compare the performance of your company with that of major players in the Australian market including 99 Bikes, Bicycle Superstore, and Bike Force Australia Pty Ltd.

Written report - Recommendations

you are required to provide two recommendations for the business moving forward and include supporting evidence through analysis to justify your recommendations. You are required to be creative and think about both financial and non-financial factors e.g., you can discuss media reports, current global financial climates, international demand, expansions or contractions of departments/product lines, internal factors, risk and liability etc.

Written report - Visualisation

Provide four (4) graphs that visually illustrate the company's overall financial situation, performance, and inventory management. Include a description for each graph that describes the results or trends. You are required to provide meaningful, effective, easy to read, and well- formatted graphs for use in managerial decision making. To draw graphs, you are required to use the MS Excel skills you gained in this subject. Do not use the ready-to-use graphs provided in Xero.

Written report - Format

You are required to write your report according to the business report format. The following link, taken from Business School of Victoria University of Wellington, New Zealand, should assist you with writing a business report according to the business report format.

Note: Just need the xero part.

Attachment:- Accounting And Information Systems.rar