Reference no: EM132389713
ACCT5014 Intermediate Corporate Accounting Assignment, Semester 2, 2019, School of Accounting - Curtin University, Australia
Apollo Bicycle Repairs and Service (Trading as ABRS Pty Ltd)
Background - Apollo Bicycle Repairs and Service (ABRS) was registered as a company on 1 July 2017 under the name ABRS Pty Ltd and is involved in a mobile bicycle repair service and has a business premises where clients can drop their bicycle off for repairs and there is also a business office. The business holds supplies they need for repairs and they also sell inventory. This inventory is a small select range of bicycle repair products and bicycle parts. They do not currently sell bicycles. The business is located in Western Australia (WA) at premises in Subiaco. Supplies for repairs and inventory for sale are sourced locally and some speciality products are imported from overseas.
The Managing Director (MD) is Mr Marko Polo. He is the majority shareholder, holding 70% of the shares. The remaining 30% is held by his wife Mrs Cherry Polo (10%) and his two children Ms Frances Polo (10%) and son Mr Henry Polo (10%). Mr Marko Polo is listed as the only director of the company. All shares are classified as ordinary shares and dividends are determined at the end of each year by the MD. The MD is also paid a salary of $75,000 per annum (not including superannuation and FBT).
ABRS Pty Ltd is classified as a small proprietary company under the requirements of the Corporations Act 2001, as evidenced by operating revenue being less than $25 million, gross assets are less than $12.5 million and they employ less than 50 staff. [3 full time staff including the MD and 4 part time staff are currently employed]. Being classified as small, they are not required to prepare financial statements in accordance with Australian Accounting Standards. However, they are required to keep sufficient records for financial statements to be prepared and audited if required and for taxation purposes.
Mr Marko Polo has contracted Venice Accounting Services to assist him in keeping better financial records. He has decided he wants to use the Xero accounting system and is going to pay $5,000 to complete the following
1) Set-up accounts in XERO.
2) Process the June 2019 transactions for the company.
3) Make the necessary adjustments/corrections as required with information provided. Any additional adjustments involves further consultation and may incur additional fees.
4) Provide a report as at 30/6/2019 outlining the financial performance of Apollo Bicycle Repairs and Service and make suggestions for improvement and/or items outstanding that may require further investigation.
[NOTE: A Professional Presentation is required]
Assignment requirements -
Using Xero (online trial account), Microsoft Excel and Word students are required to:
1) Set-up a company in XERO with opening conversion balances as provided on 31st May 2019.
2) Process all the transactions listed for the month of June 2019 in Xero.
3) Students are to make all the necessary assumptions, corrections and recommendations as required. This is part of decision-making and part of the assessment.
4) When entering transactions, to ensure students/groups are completing the work themselves each group must do the following as a part of data entry (or upload file if applicable);
a) The organisation name when set-up should include ONE students ID in the title [EG: ABRS Pty Ltd (1853365)]
b) Each new transaction for June must include the student ID in either the "Reference, Notes, Description, or Narration" sections to the transactions as outlined in the Week 7 or 8 accounting technologies lecture and tutorials. Any student ID is acceptable as long as it is an ID of a member of the same group.
c) IMPORTANT: Failure to comply with a) and b) above may result in a grade reduction of a minimum of 20% for failing to follow instructions. Further, students will be closely reviewed for collusion.
5) Prepare a concise report for the managing director explaining the financial performance of the company. The report should follow the format of an Executive Summary and should be no more than 2 pages (using 1½ spacing and size 11 font). Financial statements must be included in the report and shown in an Appendix to support the Executive Summary. The Appendix is in addition to the 2 pages.
Attachment:- Intermediate Corporate Accounting Assignment Files.rar