Reference no: EM132220381

ACCOUNTING AND INFORMATION SYSTEMS ASSIGNMENT -

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

Task Overview - The company for which you will be accounting in this assignment buys and sells socks, it commenced business on 2^nd January 2019. You will be recording transactions for the month of January 2019. The assignment contains 5 separate sections, one for each week of January. You should work though these sections sequentially.

Week 1 -January 2nd to January 6th, 2019

You are the accountant and owner of a new business which started up business on 2^nd January 2019. This business is operating as a sole trader and is registered for GST.

Set up Company - Your first task is to set up a new business in Xero - you must use your Student ID Number and Name as the Business name. Refer to the Workshop 5 Helpsheet if you need detailed help to set up a new company in Xero.

Record initial capital contribution - Once you have the business set up you need to record the initial capital contributions into the business. To get the company underway you contributed $150,000 of your own money and borrowed $250,000 from the CBA bank. The loan is a 5-year secured business loan, with an interest rate of 7% and monthly repayments of $4,950 recorded at month end. Both the capital contribution and the loan are GST exempt transactions. You should use journal entries to record this initial capital transactions. Refer to the Workshop 5 Helpsheet if you need detailed help to record journal entries in Xero. (Hint: Make sure you set up your 'cash at bank' account as per the instructions in week 5)

Record transactions for week 1

The final task for this week is to record transactions for the company. To do this you will need to create new inventory items, suppliers, and customers as required for the transactions. You may also need to add or edit accounts when recording the transactions. Refer to the Workshop 2 & 3 Helpsheets if you need detailed help to add suppliers and inventory items and record purchases of inventory. Refer to the Workshop 4 Helpsheet if you need detailed help to add customers, record sales and create receipts. Refer to the Workshop 5 Helpsheet if you need detailed help to edit or add new accounts. You may need to record asset related transactions, if so refer to the Workshop 6 Helpsheet for detailed help with recording asset purchases.

All transaction values are GST inclusive, unless noted otherwise.

Week 2 -January 7th to January 13th, 2019

The task for this week is to record transactions for the company, you may need to create new accounts, inventory items, suppliers, and customers as required for the transactions. For detailed help refer to the Xero helpsheets.

Week 3 -January 14th to January 20th, 2019

The only task for this week is to record transactions for the company, you may need to create new accounts, inventory items, suppliers, and customers as required for the transactions. For detailed help refer to the Xero helpsheets.

Week 4 -January 21st to January 27th, 2019

The only task for this week is to record transactions for the company, you may need to create new accounts, inventory items, suppliers, and customers as required for the transactions. For detailed help refer to the Xero helpsheets.

Week 5 - January 28 to January 31, 2019

The first task for this week is to record transactions for the company, you may need to create new accounts, inventory items, suppliers, and customers as required for the transactions. For detailed help refer to the Xero helpsheets.

Adjusting Journal Entries

31^st January

This is the final week in the calendar month so your main task is to prepare the month end accounting entries. For any adjustments required you will need to prepare and input a general journal entry. If you depreciate any assets you should use the straight line depreciation method.

The adjusting journals that you will need to enter are as follows: (round to TWO decimal place)

1. Loan & interest payable at month end

2. Rent expense amount for the month of January

3. Office furniture depreciation for January

4. Interest earned at month end

5. Delivery Van depreciation for January

6. Advertising expense amount for the month of January

7. Estimate of doubtful debts is 10% of Accounts Receivable as at 31^st January

8. Shell fuel card accrual adjustment

Note all month end adjusting journals must be dated 31^st January 2019.

Assignment Deliverables (Please ensure all reports have correct dates) -

1. A Trial Balance report dated 30^th January 2019. This is your 'unadjusted' Trial Balance.

2. A Journal Report for 31^st January 2019. An example from Demo Company is shown attached.

Please note that: you MUST change the date from 31 Jan 2019 to 31 Jan 2019 and click onto "Show Posted Manual Journals Only". Students who submit a Journal report that includes all journals of the whole January 2019 may be reduced 50% of their mark for this deliverable.

3. A Profit and Loss report for the period 1^st January 2019 to 31^st January 2019.

4. A Balance Sheet report as at 31^st January 2019.

5. A professionally presented short written report (maximum 1,000 words) designed for an internal user of the accounting information. Your report will explain the financial results for January, 2019. It is up to you to decide what information you include in your report and how you conduct the analysis. You must include at least 2 graphs of financial data in your report.

Attachment:- Assignment Files.rar