Reference no: EM131456294

ACCOUNTING PRACTICES ACCOUNTING PRACTICES ASSIGNMENT

PART A - BLUE SURF LIMITED

This section is worth 25% of your final course mark.

On 1 January 2017 you, the owner of Blue Surf (Your name), decided to start using Xero accounting software to process your transactions. You sell three main types of inventory: Bodyboards, Surfboards, and SUPs (Stand-up Paddle Boards). You also offer a surfboard repair service. 

Set up your company

• Start a new Trial Organisation
• Change the name to Blue Surf (Your name& ID number)
• Import the CSV Chart of Accounts file for Blue Surf (Your name) - CoA-bluesurf-student.csv
• Add the highlighted accounts in the trial balance and the additional accounts list below. Note for Capital and Drawings edit the account names to include your name.

The following additional accounts are required to be added to the imported Chart of Accounts file:

Code	Account Name	Account Type	Tax details
201	Bodyboard Sales	Sales	15% GST on income
202	Surfboard Sales	Sales	15% GST on income
203	SUP Sales	Sales	15% GST on income
211	Surfboard Repair Fees	Other Income	15% GST on income
301	Bodyboard COGS	Direct costs	No GST
302	Surfboard COGS	Direct costs	No GST
303	SUP COGS	Direct costs	No GST
601	Bodyboard Inventory	Inventory	15% GST on expenses
602	Surfboard Inventory	Inventory	15% GST on expenses
603	SUP Inventory	Inventory	15% GST on expenses
432	Bank Charges	Expense	No GST
434	Shop Insurance	Expense	15% GST on expenses
811	Total Engineering*	Current Liability	No GST
* The supplier, in this example, for the credit purchase of plant or equipment

Enter conversion balances as follows:

• Set the Conversion date to 1 January 2017
• Enter the opening/conversion balances from the trial balance at 31 December 2016.
• Complete the opening balance invoice for the accounts receivable and the opening balance bill for accounts payable.

Blue Surf (Your name) has the following balances (account type and tax details in brackets for accounts you need to add) on 31 December 2016:

Blue Surf (Your name) Trial Balance as at 31 December 2016

Code	Account Name	Debit	Credit
610	Accounts Receivable*	2,990
800	Accounts Payable**		2,294
621	Bank - Blue Surf (Xero bank account)	2,800
699	Inventory Adjustment	22,500
730	Shop Fittings	60,000
731	Accumulated Depreciation on Shop Fittings		13,400
740	Repair Equipment (Fixed Asset, 15% GST on expenses)	24,000
741	Accumulated Depreciation on Repair Equipment (Fixed Asset, No GST)		4,576
820	GST		1,020
905	Loan - MNZB		19,000
971	Capital - Your Name		72,000
		112,290	112,290
* The Accounts Receivable represents $2,990 owed by Paddle Safe. **The Accounts Payable represents $2,294 owed to Surf Co,

Add Inventory items as follows:

• Set up the following inventory items for (Your name) Blue Surf Ltd as tracked inventory
• Use separate inventory, cost of goods sold and sales accounts for each eg for Bodyboards use Bodyboards Inventory, Bodyboards COGS, and Bodyboards Sales
• Enter the quantity on hand for each inventory item using an Inventory Adjustment entry increasing the quantity

	Bodyboards	Surfboards	SUPs
Cost price excluding GST	$42.00	$399.00	$684.00
Selling price excluding GST	$86.00	$746.00	$1,300.00
Quantity on hand	20	20	20

Required:

The following transactions occurred in the month of January, process the following transactions in Xero:              

Date 2017	Transaction All amounts include GST where relevant unless otherwise stated All invoices and bills have a due date on 20 February 2017
Jan 4	Purchased 7 bodyboards and 5 SUPs on credit from Sea Gear.
Jan 4	Purchased 10 surfboards on credit from Surf Co.
Jan 7	Paid KiwiSurf for marketing $1,362.75 using online bill payment #7210.
Jan 7	Cash sales (EFTPOS): 6 bodyboards, 4 surfboards and 2 SUPs
Jan 7	Cash received for surfboard repairs (EFTPOS) $235.70
Jan 8	Sold 5 bodyboards and 8 surfboards to Raglan Surf School on credit. Gave them a 15% discount on the body boards and a 20% discount on the surfboards. Record each discount in the discount column of the invoice.
Jan 11	Sold 5 SUPs to Paddle Safe on credit.
Jan 12	Used the business EFTPOS card at The Warehouse, total $147.99. Of this $120.00 cash out was for personal expenses, the remainder was for business stationery. Business stationery is included in the Stationery Expense account.
Jan 14	Paddle Safe returned 1 SUP purchased on 11 January 2017
Jan 15	Returned 2 bodyboards purchased on 4 January 2017 to Sea Gear.
Jan 15	Paid B Kane $2,725.73 for wages by online bill payment #3100
Jan 16	Received $297.90 (EFTPOS) for surfboard repairs
Jan 16	Cash sales (EFTPOS): 3 SUPs
Jan 16	Paid monthly Xero account $55 by online bill payment #2001. The Xero account is included in Office Expenses.
Jan 21	Paid Surf Co $1,500 in part payment of the amount due on 31 December 2016. Bill payment #4100
Jan 21	Charged Sam Hewitt $100 for surfboard repairs.
Jan 22	Monthly cash drawings transferring $4,500 from the business bank account to your personal bank account.
Jan 25	Cash sales (EFTPOS): 5 Bodyboards, 3 Surfboards and 4 SUPs
Jan 28	Pacific Media charged $2,400 for advertising in NZ Surfing magazine. Advertising is included in the Marketing account.
Jan 28	Import the bank statement file BS-surf.csv and complete the bank reconciliation process Note: ? Telco  Direct Debit is for Phone & Website ? Max Energy Direct Debit is for Electricity ? A2 Property Direct Debit is for Shop Rent ? Direct credit from Paddle Safe is in full settlement of their 31 December 2016 balance ? Direct credit from Raglan Surf is in part payment of their invoice. Other items should be self explanatory
Jan 30	You gave one SUP to your dad for his birthday.
Jan 31	Last month Accountancy fees of $253.20 was posted in error to office expense. Correct this error.

Required:

• View your journal report for 31 December to 31 January 2017 and export it to a PDF file. Save the file and submit on Canvas.
• View the Profit and Loss report for the period 1 January 2017- 31 January 2017 and export it to a PDF file. Save the file and submit on Canvas.
• View the Balance Sheet report for the period as at 31 January 2017 and export it to a PDF file. Save the file and submit on Canvas.
• View Bank Account Transactions report for the date range 31 Dec 2016 - 31 Jan 2017 and export it to a PDF file. Save the file and submit on Canvas.

PART B - PAPATOETOE MANUFACTURING CASH BUDGET

This section is worth 5% of your final course mark.

The following table shows the information provided by Papatoetoe Manufacturing for the purpose of preparing a monthly cash budget. Using the Excel spreadsheet that is saved on your exam drive, prepare a cash budget for the months of October, November and December 2017 and show the quarterly totals.

Estimated figures	October	November	December
Cash sales	45,000	58,000	80,000
Credit sales	120,000	95,000	110,000
Cash purchases	32,000	35,000	36,000
Credit purchases	45,000	48,000	59,000
Wages	15,000	18,000	16,000
Motor vehicle purchase		60,000

All figures are GST inclusive where applicable.

The following are additional notes on completing the cash budget:

• Actual cash sales in July, August and September 2017 were $38,000, $42,000 and $40,000 respectively
• Actual credit sales in July, August and September 2017 were $90,000, $100,000 and $95,000 respectively.
• Accounts receivable settle their accounts as follows: 75% in the month following sale and 25% two months following sale
• Commercial rent income is $6,000 per month for 2016
• Actual cash purchases in July, August and September 2017 were $29,000, $30,000 and $28,000 respectively.
• Actual credit purchases in July, August and September 2017 were $45,000, $65,000 and $49,000 respectively.
• Accounts payable are paid as follows: 100% in the month following the purchase
• Other operating expenses are $15,000 per month for 2016 which includes an amount of $2,000 per month for depreciation.
• GST is 15% on invoice basis and Net GST owing is paid in the month following after sales and purchases have been incurred
• Show totals for the quarter.
• Bank balance at 30^th September was $8,000.

The company has a new policy starting from Oct 2016 where a minimum closing cash balance of $40,000 is required for every month. Any excess over $40,000will be used to pay back the loan. Assume that there is no borrowing at the end of September 2016.

Please ensure you use formulae to calculate your cash budget. Marks will be deducted for entering numbers when formulae can be used.

Required:

• Download the excel data file "Accounting Practices Assignment Q1 2017 PART B Cash budget data file.xls" from canvas.
• Save the file with your name and ID number as the file name.
• Complete the cash budget spreadsheet and submit.

Attachment:- Assignment Files.rar