QUEENSLAND UNIVERSITY OF TECHNOLOGY QUT Business School School of Accountancy AYN416 Financial Accounting Processes Semester 1 2021 Integrated Accounting Project (Weighted Total – 20%) Due: Sunday 2 May 2021 by 11.59pm Submissions: 1. Electronic submission through Blackboard/ Assessment/ Assessment Item 2/ Integrated Accounting Submission link of a) Excel file b) Combined 1 PDF file of 8 Reckon Reports or zipped folder or PDF files of 8 individual reports and c) Reckon file with file extension .QBW. 2. Completion of Reckon quiz in Blackboard 3. Completion of Excel quiz in Blackboard Type: Individual Students should regularly check the Announcements of the AYN 416 Blackboard site for updates and clarifications to the Project. This assessment item assesses the following learning outcomes: Knowledge & Technical Skills (KS) 1.2 Apply technical, technological and technical research skills to organise and interpret discipline knowledge, including theory and practice, to investigate business issues. Higher Order Thinking (HO) 2.1 Critically investigate real world business issues and problems drawing on analysis, evaluation and synthesis of discipline knowledge, including theory and practice. ___________________________________________________________________ QUT’s late assignment policy applies for all units. If you do not hand in your assignment by the due date, it will not be marked, and you will receive a grade of 1 or 0%. You may apply for an extension BEFORE the due date. If you do not have an approved extension (i.e. if you have applied but have not heard, or if your application for an extension has been denied), submit the work you have completed by the due date and it will be marked against the assessment criteria. You should be aware of the MOPP in relation to academic integrity specifically http://www.mopp.qut.edu.au/C/C_05_03.jsp. Failure to maintain academic integrity also includes resubmission of your own work. Assessments submitted after the due date without an approved extension will not be marked and will receive a grade of 1 or 0%. If special circumstances prevent you from meeting the assessment due date, you can apply for an extension. If you don’t have an approved extension you should submit the work you have completed by the due date and it will be marked against the assessment criteria 1 AYN416 Sem 1 2021 AYN416 Integrated Accounting Project (to be completed individually) Objectives: The objectives of this project are for students to demonstrate: 1. Skills and knowledge in the preparation of manual financial statements (AOL KS 1.2) 2. Incorporate use of a computerised accounting package (AOL KS 1.2) 3. Compare and reconcile the manual and computerised financial statements (AOL HO 2.1) This Project consists of completing the accounting cycle for a sole trader retail business for April 2021 using both Reckon accounting software and Excel. Submission: 1. Required files for the assignment must be submitted via Blackboard no later than 11.59pm on Sunday 2 May 2021. (Refer assessment section: Assessment Item 2.) 2. Reckon Quiz: Complete the 20 minute 15 question quiz* relating to the Reckon component on Blackboard using your printed Reckon reports no later than 11.59pm on Sunday 2 May 2021. (Refer quiz link under the assessment section: Assessment Item 2). 3. Excel Quiz: Complete the 20 minute 15 question quiz** relating to the Excel component on Blackboard using your printed Excel worksheet no later than 11.59pm on Sunday 2 May 2021. (Refer quiz link under the assessment section: Assessment Item 2). It is recommended to start the submission and quizzes approximately 2 hours before the due date and time as creating pdfs and the submission can take time and late submissions are not accepted. *The Reckon quiz, Reckon file (.QBW) and Reckon reports must be submitted for Part A – The Reckon mark is from your quiz mark based on your answers from your Reckon reports. If you submit a Reckon file and/ or reports only, without completing the Reckon quiz, you will receive 0 for Part A. If you submit the Reckon quiz, without submitting the Reckon file and reports, you will receive 0 for Part A. **Both the Excel quiz and spreadsheet must be submitted for Part B – The Excel mark is from your quiz mark only based on your answers from your spreadsheet. If you submit an Excel file only without completing the Excel quiz, you will receive 0 for Part B. If you submit the Excel quiz only without submitting the Excel spreadsheet, you will receive 0 for Part B. Please upload via Blackboard: Note: keep all file names to less than 15 characters e.g. ‘Excel Template’ as Blackboard does add your student number automatically to the file name: - Combined 1 PDF file of 8 Reckon Reports or zipped folder of 8 Reckon reports or PDF files of 8 Reckon reports* with file names less than 12 characters * (e.g. TB.pdf) (see page 12) (the quiz on the Reckon component is completed via Blackboard) and - your Reckon file with file extension .QBW. (Files with .TLG and .ND extensions are not needed) - your Excel file (the quiz on the Excel component is completed via Blackboard) Requirements: The Assignment worth 20% has three (3) compulsory parts – Part A (7.5%), B (7.5%) and C (5%). Assessment Criteria The total assessment for this Assignment is based on Assurance of Learning Criteria and is worth 20% of the total marks for the semester. The CRA sheet is provided at the end of this document. 2 AYN416 Sem 1 2021 When and where should I start? Tip: Keep up with your weekly homework as Excel will involve all elements of topics 1 to 5. Read the assignment instructions first. Consider the transactions on pages 6 and 7 and note which ones will need recording in Reckon/ Excel and which ones are not relevant for April. Start Reckon (Part A) as soon as possible after topic 1. (Refer page 8 for preparation). It is recommended to note which area in Reckon each transaction is to be recorded (e.g. Customer/ create sales receipts). Aim to have completed Reckon by topic 5 so then you can start Excel which often takes students longer to finish, particularly if all topic 1 to 5 homework hasn’t been completed earlier. Start Excel (Part B) any time after topic 5. (Refer page 12 for preparation). It is recommended to note which journal each transaction is to be recorded and whether daily or monthly posting is required. Assignment Goal: to get the Reckon and Excel records to reconcile. Once you complete Reckon, you can use the Reckon trial balance to enable you to check against your Excel trial balance and identify differences. Helpful steps and tips and check figures including the correct profit are included. Allow plenty of time before submission to ensure that you can complete both Reckon and Excel components and get the 2 sets of records to agree, including the correct profit. Part A – (7.5% weighting): Reckon assessed by Reckon Quiz You will demonstrate a comprehensive understanding of relevant concepts, using Reckon software. Demonstration videos and materials are in Support Resources/ Reckon Software Materials. Reckon is assessed by a 20-minute, 15 question quiz on Blackboard using your printed Reckon reports. Students are required to type in answers without formatting if it is a number (e.g. no $ or , or decimals) or enter free text. Do not insert any symbols. Your quiz responses must match your reports. Example: how many categories of inventory are shown on the Inventory Valuation Summary? 4 Part B – (7.5% weighting): Excel assessed by Excel Quiz. You will demonstrate a comprehensive understanding of relevant concepts, principles and practice in the manual preparation and presentation of financial statements, using Excel. An Excel template is available under the assignment folder in assessment on Blackboard. Excel is assessed by a 20-minute, 15 question quiz on Blackboard using your printed Excel worksheet pages. Students are required to type in answers without formatting if it is a number (e.g. no $ or , or decimals) or enter free text (e.g. x for question 3 below). Do not insert any symbols. Your quiz responses must match your Excel. Excel Quiz Question Examples & Answers (no number formats such as $, decimals or any other formatting such as symbols used) 1. What is the total sales revenue for the month of April? 38600 2. What is the total of the non-current assets as at 31 March on the Comparative Statement of Financial Position? 24212 3. What Posting Reference appears below the total of the “Other Accounts” column in the Cash Payments Journal? A cross or x 4. What is the amount of the credit posting in the accounts receivable general ledger account on 30 April? 43200 5. What is the balance of the accounts receivable general ledger account on 30 April? 51202 6. How much did The Gap High School owe to Grooving Guitars as at 30 April? 18470 7. How many individual Administrative Expenses are listed in the Classified Income Statement? 8 8. In the Accounts Receivable general ledger account, what is the posting reference in the Jnl Ref column for the credit entry on 30 April? CRJ17 Part C – Compulsory (5% weighting): Reconciliation of Reckon and Excel Part C requires you to critically evaluate Reckon and Excel reports to initially identify any differences and ultimately to reconcile to each other. 3 AYN416 Sem 1 2021 BACKGROUND AND FACTS: RECKON AND EXCEL Will Bain is the owner of a music store business located in Brisbane. He established the business 3 years ago and operates as a sole trader. He does have an approved overdraft facility with his bank (ANZ). Will submits his Business Activity Statements (GST Return) quarterly on an accruals basis. Will is currently using a manual system to prepare his financial records. He has come to you to implement Reckon software. To ensure the accuracy of the software implementation, he has asked you to prepare both manual records and records in Reckon for the month ending 30 April, 2021. Refer to Chart of Accounts below when preparing journals for the account numbers and names used. Chart of Accounts and Trial Balance as at 31 March, 2021 Account No. Account Name 101 110 112 115 116 118 130 131 135 136 200 201 203 205 301 Cash at Bank - ANZ Accounts Receivable Inventory Prepaid Insurance Prepaid Rent Office Supplies Store Equipment Accumulated Depreciation - Store Equipment Computer Equipment Accumulated Depreciation - Computer Equipment GST Clearing (Tax Payable GST)* Accounts Payable Wages Payable PAYG Tax Payable** Capital Total Drawings Profit or Loss Summary Sales Revenue Sales Returns & Allowances Cost of Sales Bank Charges Depreciation Expense - Computer Equipment Depreciation Expense - Store Equipment Electrical Repairs Expense Insurance Expense Office Supplies Expense Rent Expense Telephone and Internet Expense Utilities Expense Wages Expense 302 307 401 402 501 503 505 506 510 520 542 560 580 582 585 Balance DR 14,870 56,518 24,480 15,000 1,520 29,080 24,460 165,928 CR 14,040 15,288 12,450 28,970 5,180 90,000 165,928 *GST Clearing (Tax Payable GST) is the account set up for the GST owing. Reckon will also add another account named Tax Payable as you process transactions with GST. You will have 2 GST accounts when your assignment is complete: GST Clearing (Tax Payable) will have a zero balance and Tax Payable should have the same balance as your 1 general ledger account for GST in Excel. **PAYG Tax Payable is tax withheld from staff wages owed to the government. 4 AYN416 Sem 1 2021 Accounts Receivable Subsidiary Ledger as at 31 March Creative Industries Kelvin Grove High School The Gap High School Total 23,120 7,448 25,950 56,518 Accounts Payable Subsidiary Ledger as at 31 March Able Accountants Fender Guitars Insight Computers Yamaha Total 3,850 16,500 4,520 4,100 28,970 Inventory Balances as at 31 March Grooving Guitars sells inventory items indicated below and uses a perpetual inventory system. The stocktake at 31 March showed: Item Description Acoustic Guitar Bass Guitar Electric Guitar Student Pack Units on Hand 64 23 20 35 Unit Cost $ (excluding GST) 180 170 190 150 Total Value $ (excluding GST) 11,520 3,910 3,800 5,250 24,480 Unit Selling Price $ (excluding GST) 360 340 380 300 Cost price of inventory items remains constant for the month and thus the inventory cost flow method is irrelevant for this assignment. Accounting Information The business uses the following specialised journals to record its business transactions: • • • • • A Sales Journal is used to record the sale of inventory on credit during the month (not sales returns). A Cash Receipts Journal is used to record all cash received. A Cash Payments Journal is used to record all cash paid. A Purchases Journal is used to record all purchases of inventory on credit (not purchase returns). A General Journal is used to record all other transactions. (Narrations are not required for general journal transactions.) The business uses a general ledger, an accounts receivable subsidiary ledger and an accounts payable subsidiary ledger. The 4 column running balance form of ledger account is used. The business does use a Sales Returns and Allowances account in the Excel to record sales returns from customers. Note that there is no ability in our Reckon student version software to record Sales Returns separately. Instead the software will process a sales return as a reduction from Sales Revenue. Do not create a separate Sales Returns account in Reckon. NOTE: There is an extra column in the ledger accounts to make a note of source document numbers etc. We do not have such information so leave this column blank. Financial statements are prepared monthly. Reckon software is to be used to prepare computerised records. An Excel template is available on Blackboard to be used to complete the Excel task. Reckon and Excel records must reconcile to each other. 5 AYN416 Sem 1 2021 April 2021 Transactions to enter into both Reckon and Excel where relevant: The business transactions that occurred in April 2021 are as follows: (refer chart of accounts for account names and numbers. Do not make up your own account names). Tip: You need to decide if each transaction involves: a normal Reckon/Excel transaction, an adjusting entry or requires NO transaction at all for the month of April 2021. See page 10 for Reckon Tips. 1. April 1 Paid for electrical repairs $330 (including GST $30) with cheque number 46. 2. April 1 Purchased a computer on credit from Insight Computers for $1,342 (including GST $122). 3. April 2 Purchased office supplies with cheque number 47 for $770 (including GST $70). Record this using the Office Supplies account. 4. April 2 Sold 30 acoustic guitars on credit to Creative Industries, invoice number GG32 $11,880 (including GST $1,080). 5. April 3 Purchased 40 acoustic guitars on credit from Yamaha $ 7,920 (including GST $720). 6. April 4 Paid for prepaid insurance of $1,320 for 12 months effective 1 April (including GST $120) with cheque number 48. 7. April 4 Sold 4 electric guitars for cash of $1,672 (including GST $152), receipt number C324. 8. April 4 Will withdrew $1,000 cash for personal use with cheque number 49 (no GST applicable). 9. April 4 Paid monthly net wages of $3,400 with cheque number 50 (no GST applicable). See transaction 28 for the PAYG tax withheld from staff wages. 10. April 10 Sold 6 bass guitars and 30 students packs on credit to Kelvin Grove High School Invoice Number GG33 $12,144 (including GST $1,104). 11. April 11 Purchased 20 student packs on credit from Fender $ 3,300 (including GST $300). 12. April 12 Hired a new staff member who will start on May 15 with an annual salary of $50,000. 13. April 14 Paid Able Accountants the balance owing of $3,850 with cheque number 51. 14. April 21 Paid Fender Guitars $15,400 with cheque number 52 as part payment of the balance. 15. April 21 Issued a credit note to Kelvin Grove High School for return of 2 student packs, Credit Number 14 $660 (including GST $60). (Retain as an available credit in Reckon). 16. April 22 Received $15,200 from Creative Industries as payment on account. 17. April 26 Paid the monthly telephone and internet expense with cheque number 53 for $275 (including GST $25). 18. April 26 Invoiced The Gap High School for 20 student packs and 20 acoustic guitars, Invoice Number GG34 for $14,520 (including GST $1,320). 19. April 28 Received $6,000 on account from Kelvin Grove High School. 20. April 28 Returned 2 acoustic guitars to Yamaha and received a credit of $396 (including GST $36). 21. April 28 Sold 6 bass guitars as a cash sale for $2,244 (including GST $204), receipt number C325. 22. April 30 Will lodged his quarterly Business Activity Statement (BAS return) and paid cheque number 54 to the ATO for a total of $17,630 for 2 items: 1) GST Clearing Tax Payable GST of $12,450 and 2) PAYG tax payable of $5,180. (Record each item on a separate line in Excel)(Use Write Cheques in Reckon with a separate line for GST and PAYG). 6 AYN416 Sem 1 2021 23. April 30 Paid for utilities expense for April with cheque number 55 for $286 (including GST $26). 24. April 30 Signed a 6-month agreement to rent additional storage space from May 1, 2021 for $1,045 monthly (including GST $95) 25. April 30 Paid for April electrical repairs $143 with cheque number 56 (including GST $13). 26. April 30 Received $22,000 from The Gap High School as payment on account. 27. April 30 Bank Statement: Paid bank charges of $25 (no GST applicable) 28. April 30 Record the general journal entry below for $1,020 for the total PAYG tax withheld from the monthly wages. (PAYG tax payable is tax withheld from staff wages owed to the government.) Debit wages expense Credit PAYG Tax Payable 29. April 30 Will contributed $2,500 of capital into the business bank account. April 2021 Adjusting Entries to enter into Reckon and Excel Note: Adjusting entries are prepared monthly Use the letters (A) to (E) below in your Excel worksheet for the Letter of Adjustment column to ensure that you have a debit and a matching credit for each adjustment. A) Accrued Wages Wages owing as at 30 April are $600. B) Insurance Noted in the transactions above, 12 months of insurance was prepaid on April 4. (Tip: watch out for the GST that has already been recorded separately) C) Depreciation – Store Equipment Annual Depreciation on Store Equipment has been calculated at $5,616. D) Depreciation – Computers Annual Depreciation on Computers has been calculated at $6,840. E) Office Supplies Expense On 30 April, a stocktake of office supplies was made and there were $370 of supplies remaining. F) Rent Three (3) months of rent was prepaid on March 31, 2021. (Refer Prepaid Rent general ledger account for the amount paid). 7 AYN416 Sem 1 2021 Part A Reckon Accounting Task Instructions (1 – 13) 7.5% Before Starting Reckon Component: It is vital that you complete the 2 Essential Reckon exercises under Support Resources/ Reckon Support Materials before you start the Reckon component of this assignment. Reckon software is to be used to prepare computerised records to ensure they agree with Excel. It is important to save and backup regularly to your QUT student network drive or other secure location rather than relying on a USB or to the local drives of QUT computers which are cleared as users log off. Do not rely on one file location in case there is a problem such as corruption, losing USB etc. Reckon will name your original files with the extension. QBW and the backup files .QBB. Marks will be allocated, where students have produced correct reports that reconcile to the required values. Remember, key figures such as profit are provided and the client is expecting you to ensure Reckon and Excel agree. If they don't agree or you don’t allow enough time and only achieve the initial set up process, low marks will result because you haven't achieved assessment or client requirements. 1) Establish a new data base in Reckon. Step 1 Company Information. On the Reckon menu bar, click File > New company. Click Start Interview Enter Company Name and add your student number and surname and to the end of the company name. (e.g. Grooving Guitars 9084574 Marsland). Leave other fields blank. Note: Click Next at each step of the interview to move on. Step 2: Select your industry. Select Product Sales/ Retail Step 3: How is your company organised? Select Individual Tax Return Step 4: Select the first month of your financial year. Select: July Step 5: Ignore passwords Step 6: Create your company file, indicating a directory to save to. Click Save. Step 7: Customising In the interview process, choose the Preferences below. Take care to enter carefully as you can’t change these preferences and would otherwise need to start again: Field Select Then What do you sell? Products only Click Next Do you track tax? Yes Click Next Do you want to create estimates in Reckon? No Click Next Do you want to track sales orders before you tax invoice your customers? No Click Next Do you want to use sales receipts in Reckon? Yes Click Next Do you want to use billing statements in Reckon? No Click Next Do you want to use invoices in Reckon? Yes Click Next Do you want to use progress invoicing? No Click Next Do you want to keep track of the bills you owe? Yes Click Next 8 AYN416 Sem 1 2021 Field Select Then Do you want to track inventory in Reckon? Yes Click Next Do you want to track time in Reckon? No Click Next Do you have employees? No Click Next twice Select a start date to start tracking your finances Enter 31/3/2021 Click Next Would you like to add an existing bank account? Yes Click Next Key in ANZ Bank Account for the name of the bank account. Click on or after 31/3/2021. Click Next three times. Click Finish to complete the initial set up process. 2) Set up preferences for banking for all receipts and payments to process to the ANZ Bank Account) (otherwise they will default to Undeposited Funds). See Reckon Essential Exercises. 3) Important: Set up user for Audit Trail Log to enable production of an Audit Trail Report. Click on Company. Click on Set Up Users. Click on Add User. Enter your student number followed by your surname (e.g. 9084574 Marsland). Record exactly what you have typed safely as you will use it to log in and record all of the assignment transactions. Do not enter Passwords. Click Next. Click No that you do not want to enter a password. Click on All Areas of Reckon Accounts (for the user to enable access). Click Yes to confirm you do wish to allow the user to access all areas of Reckon. Click Finish & Close. 4) Choose the option File/ Close Company/(Log Off and Open the Grooving Guitars.QBW File that you have established. Now log into Reckon using the User Name that you established earlier. (if you forget your username, log in as Admin and note down the user name and repeat the log in process).The Administration User is not to be used in any of the assignment process, otherwise you will receive 0 for the Reckon component. Set up lists and Opening Balances for Inventory, Customers and Suppliers as at 31 March 2021. (Addresses are not required for this project for customers or suppliers). 5) Run an Audit Trail Report 1/1 to today’s date to ensure that you can see your User Name in all the transactions (not the Admin user). If you fail to submit an Audit Trail Report or submit an Audit Trail with the Admin user only recorded, you will receive 0 for the Reckon component. 6) Enter opening balances for all other permanent accounts as at 31 March 2021 (other current assets, other current liabilities, fixed assets etc). Note: temporary accounts will not have opening balances. 7) Run a trial balance as at 31 March 2021 to ensure all opening balances are accurate. Process a general journal entry to correct the items in the trial balance which require adjustment including an entry to correct Uncategorised income, Uncategorised expenses and Opening Balance (equity). See Reckon Essential Exercise – Existing Business for a demonstration. 8) Save your file. Also, backup your Reckon file using the Save Copy or Backup function (which will name it with the extension.QBB). 9) Record the April transactions in Reckon, opening new accounts as necessary and appropriate (e.g. current assets, fixed assets, liabilities, equity, revenues, expenses, etc). For Reckon, you do not need to use the account numbers provided in the Chart of Accounts. 9 AYN416 Sem 1 2021 Tips for entering Reckon transactions: • • • • • GST codes: where payments have GST included, use the tax code NCG for expenses and CAG for the purchase of the computer. Bank Accounts: Check each receipt and payment is processed to the bank account, not Undeposited Funds). Dates: ensure that dates are entered correctly in the month of April. Names: are required if the transactions involve Accounts Receivable or Accounts Payable but for other transactions such as Cash Sales and Cash Cheques, you can simply enter “Cash Sale” or “Cash” respectively by adding these items. To edit or delete transactions: Use the magnifying glass function by hovering over a trial balance or other report to identify accounts that are in error (e.g. undeposited funds) and drill down to the original transactions to change or delete. Most transactions can be changed for details such as amounts, dates etc or deleted using Edit Delete . You can also work through transaction types (e.g. Create Invoices) by using the Previous and Next functions to move through and edit or delete as required. Regularly save and backup your files. Do not rely on 1 backup in case there is a problem. Reckon will name your original files with the extension. QBW and the backup files .QBB. 10) Prepare a trial balance as at 30 April 2021 and ensure all account values agree to the unadjusted manual trial balance prepared in Part A except for Sales and Sales Returns. (Reckon Trial Balance total should be $185,144 as Sales Returns is netted off against Sales in Reckon not displayed separately as it is in Excel). Note that there is no ability in our Reckon student version software to record Sales Returns separately. Instead the software will process a sales return as a reduction from Sales Revenue. Do not create a separate Sales Returns account in Reckon. 11) Process the adjusting entries from page 7 in Reckon. 12) Print to pdf the following reports from Reckon. Combine into 1 pdf or zipped folder of 8 Reckon reports for ease of marking. Please name your report files for submission to Blackboard with a file name less than 12 characters so that we can download them for marking.(e.g. TB.pdf). Please name your Reckon report files as indicated below: 1. JNL: Journals: 1 April to 30 April 2021 (Reports Accountant) 2. TB: Trial Balance at 30 April 2021 (Reports Accountant) (This is the final trial balance as it includes the adjusting entries. We don’t need the Adjusted Trial Balance) 3. PL: Profit and Loss Standard: 1 to 30 April 2021* (Reports Company & Financial) 4. BS: Balance Sheet as at 30 April 2021 (Reports Company & Financial) 5. INV: Inventory Valuation Summary as at 30 April 2021 (Reports Inventory) 6. CUS: Customer Balance Detail from 1 to 30 April 2021 (Reports Customers & Receivables) 7. SUP: Supplier Balance Detail from 1 to 30 April 2021 (Reports Suppliers & Payables) 8. AUD: Audit Trail Report (Date Range: 1/1 to today’s date) (Reports Accountant: Audit Trail) * Note Profit and Loss does not need to be classified into Business Function for Reckon. Closing entries are not required in Reckon as they are done automatically by the software. 13) Check against values provided below to ensure that your Reckon values are accurate. RECKON CHECK VALUES TO ASSIST YOU TO COMPLETE THE SET ACCURATELY: Trial Balance before adjusting entries (due to netting off sales returns) $185,144 Trial Balance after adjusting entries (due to netting off sales returns) $186,782 Net profit for April $5,027 10 AYN416 Sem 1 2021 Reckon Report Printing Instructions to pdf: If you don’t have access to Adobe software, you can use the Windows Snipping Tool or manually print then scan into pdf or use QUT computer labs or other computers which have the full version of Adobe which allows saving to pdf rather than just opening a pdf. IT Helpdesk can also assist with PDF creation. Some helpful instructions re printing or saving to pdf: 1) Maximise the report to the whole screen 2) Choose File Print Report. Then choose Printer: Microsoft Print to PDF (or Choose File Save as PDF and Printer Adobe Pdf. Important! Please tick the box to fit report to 1 page wide so it can be marked. Combine into 1 pdf if possible, for ease of marking. See above for screenshots to fit your printing to 1 page in width so that it can be marked. Tip: Ensure to practise printing a Reckon report to pdf well before the assignment due date to ensure that you can complete this necessary step as we need the Reckon reports to allocate marks (we can’t mark only a Reckon file submitted without reports). 11 AYN416 Sem 1 2021 Before Starting Excel Component: Please ensure you have done all the homework questions for topics 1 to 5 especially topic 5 special journals before attempting this assignment. The in-class example for topic 3 is helpful to show the entire accounting process including adjusting entries, closing entries and the worksheet. There is also sample Excel file under Assessment/ Assignment provided as an example for you with some similar transactions to guide you including use of Excel formulas for efficiency. It is vital to complete PSA6.6 from the textbook, which covers special journals and the required postings before you start the Excel component as the assignment follows the same process. Useful Tips • Proofs have been inserted in the journals to prove Total Debits = Total Credits. (Proof should = 0). • Formulas exist in some areas of the template, but other formulas are required in some accounts (e.g. general ledger accounts balances for Profit & Loss Summary, drawings, revenue & expenses) • To insert a √ for your subsidiary ledger postings, use Insert Symbol and scroll down to find the tick. • To minimise errors and maximise efficiency, it is recommended to enter values in the journals only, then use Excel formula to post to general and/or subsidiary ledger and other areas of the template. • The 2nd column of the General Ledger and Subsidiary Ledger accounts can be left blank. • Enough space has been provided in the Excel template – do not insert extra rows or columns. Part B EXCEL Accounting Task Instructions (1 – 10) 7.5% 1) Open up the Excel student template provided on Blackboard and enter your name and student number into the footer section on the first tab (Chart of Accounts) 2) Record the April transactions in the following journals: cash payments, cash receipts, purchases, sales and general journal. (Opening balances at 31 March are already entered into the general ledger and subsidiary accounts). Postings are done either daily or monthly. Post daily to the subsidiary ledgers. Post daily from the general journal. Post the monthly totals of the special journals to the general ledger. Include posting references in the journals. (There will be only 2 postings to the ANZ Bank Account – total receipts and total payments). NOTE: For posting reference purposes in the ledgers, please use the journal page numbers indicated next to the journal title (e.g. SJ18, PJ18, CPJ25, CRJ17, GJ62, GJ63, & GJ64). 3) Prepare a trial balance as at 30 April 2021, in the trial balance columns of the worksheet. 4) Complete the worksheet using the required adjusting entries above for the month of April : 6) Prepare and post the adjusting entries for the month of April. 7) - Prepare the following statements for month ended 30 April in accordance with AASB 101: a classified income statement classified by business function (expense classification below) a statement of changes in equity, and a classified statement of financial position (or balance sheet) with comparative values as at 31 March. (Use separate columns to compare 31 March values with 30 April values). There is a need to split Sales and Sales Returns separately in Excel. For Income Statement business function expense classification, use the following 3 classifications: 1. Selling Expenses: Wages 2. Administrative Expenses: Depreciation – Computer Equipment, Depreciation – Store Equipment, Electrical Repairs Expense, Insurance Expense, Office Supplies Expense, Rent Expense, Telephone and Internet Expense, Utilities Expense 3. Finance Expenses: Bank Charges 12 AYN416 Sem 1 2021 8) Prepare and post the closing entries to the general ledger accounts to prepare for the next month. 9) Prepare a post-closing trial balance and confirm whether the total of the subsidiary ledgers agree with the relevant control accounts in the general ledger for accounts receivable and accounts payable. 10) Check that the values match those below and Reckon for everything except the trial balance totals as Reckon treats sales returns differently so the Reckon trial balance numbers are different. EXCEL CHECK VALUES TO ASSIST YOU TO COMPLETE THE SET ACCURATELY: Total of the Unadjusted Trial Balance Columns of the Worksheet Total of the Adjustments Columns of the Worksheet Total of the Adjusted Trial Balance Columns of the Worksheet Net profit for April $185,744 $8,588 $187,382 $5,027 Part C Reconciliation of Manual and Reckon Accounting Task 5% Ensure all Reckon reports agree with Excel (except for different treatment of Sales Returns in Reckon as Sales Returns is netted off Sales in Reckon not displayed separately as in Excel.) There are minor differences in Reckon names (e.g. Trade Receivables, Trade Creditors and Tax Payable have equivalent names to Excel Chart of Accounts and don’t need to be altered). Similarly, the order of accounts must be logical and in the correct categories within Current Assets, Fixed Assets, Current Liabilities and Equity. Ensure that the Balance Sheet displays Original Cost of Fixed Assets above Accumulated Depreciation and that Capital displays above Drawings. (These can be altered in the Chart of Accounts as demonstrated in the sample exercises). In Reckon, there is no need to remove accounts with a zero balance: just leave them. For Reckon, you do not need to use the account numbers provided in the chart of accounts. Check that the Reckon and Excel Check Values match those provided earlier on pages 10 and 13 (including profit and trial balance totals). Check the following 6 items to ensure they are the same in both Excel and in Reckon: 1. 2. 3. 4. 5. 6. Gross Profit Net Income or Net Profit (and agrees to provided profit of $5,027) Total Assets Total Equity Accounts Receivable Accounts Payable Once you have checked these, there is nothing additional needed to be included for Part C as the marker will confirm that Reckon and Excel do reconcile. The items must all reconcile to get the full 5%. If none of the specified items reconcile between Reckon and Excel, no marks will be awarded for part C. Support Provided: • • • • Materials are on Blackboard to assist with Reckon and Excel. Consultation with Staff and Postgraduate Learning Advisors. Frequently Asked Questions and Discussion Boards on Blackboard to enable any clarifications or answer any common questions. IT Helpdesk can assist with installation of Reckon on computers operating with Windows. 13 AYN416 Sem 1 2021 Frequently Asked Questions and Answers: Reckon: • Why do I have Uncategorised Income and Uncategorised Expenses with values on my Trial Balance? Answer: follow the steps in the Essential Reckon Exercise (Existing Business - School Book Supplies) to show you how to deal with these accounts. • Are we allowed to change the account titles? E.g. "Trade receivable" to "Accounts Receivable" so that we have the same name as in the instructions? Answer: You can but you don't need to - just leave as is because Reckon calls them slightly different names. • Are we allowed to create new accounts like "Prepaid Insurance" because there are no prepaid accounts in Reckon yet? Answer: Yes - you need to. • Do we have to add the account numbers in Reckon? Answer: No - no need for account numbers in Reckon . • Some account names are too long in Reckon like "Accumulated Depreciation - Store Equipment". How do we abbreviate the names best? Answer: Accum Depcn - Store • Why is there a second Tax account ("PAYG Tax Payable*")? I don't know what that transactions affect this account. Answer: PAYG is the tax withheld from staff wages which we owe to the government. All transactions you need for this account are described in the instructions so you can deal with it. • I have been trying to set up my chart of accounts for Reckon and I am unsure on entering the GST Clearing (Tax Payable GST) opening balance. Is this even the correct account to enter the opening balance? Does all the GST paid and received automatically post to here – I can’t see anywhere that would indicate this also? Answer: That is why we created a slightly different name if you create this account exactly as it is named in the assignment, you can add an opening balance just like the other opening balances. We will just then pay this balance. The remainder of the GST transactions Reckon will process automatically to another account simply called Tax Payable. Excel: • I am not sure how to enter the information into the special journals and subsidiary ledgers. Answer: follow the steps in PSA6.6 from the textbook and use this format to complete your Excel template. • Is there an example file that I can look at? Answer : Yes: A sample Excel file under Assessment/ Assignment is provided as an example for you with some similar transactions to guide you including use of Excel formulas for efficiency. How long will the assignment take? When should I start? When should I aim to finish? A past student’s advice: I would conservatively estimate that it took me around 25-30 hours (inclusive of learning Reckon program, setting up database correctly, how-to videos etc.) I have a bit of experience using MYOB so the Reckon component was actually not too difficult to learn. I already understood the importance of correct dates for reports and entries and inputting data for entries, so outside setting of up the initial database I did not run into many issues. (Approx. 5-10 hours total) The Excel component took a larger portion of time. I was going slower to limit mistakes and ensure I did not accidentally skip or miss things while navigating between tabs. I found the assignment instructions to be a significant help in this regard, as were the notes on the lecture slides highlighting important sections relevant for the assignment. (Approx. 15-20 hours total) If I were to give advice to other students, I would recommend starting early and getting a good grasp on Reckon on a week-to-week basis so you can spend more time looking at Excel manual entries and understanding how everything flows together. Aim to finish two to three days before the due date to allow for problems. If it is late, it is 0! 14 AYN416 FINANCIAL ACCOUNTING PROCESSES – ASSIGNMENT CRITERIA SHEET Student Name: …………………………………………………. Student No.: ………………. AYN416 Sem 1 2021 Date: …………….. Part A – Reckon Accounting Task (7.5% weighting) Assessed using Blackboard Reckon Quiz: 15 questions in 20 minutes using your printed Reckon reports Criteria 85% ) Mark Knowledge and Skills (KS1.2) Demonstrated a lack of proficiency in the use of accounting software and summarising results. Demonstrated some competence in the use of accounting software and summarising results. Demonstrated competence in the use of accounting software and summarising results. Demonstrated proficiency in the use of accounting software and summarising results. Demonstrated high proficiency in the use of accounting software and summarising results. / 7.5 Part B – Excel Accounting Task (7.5% weighting) Assessed using Blackboard Excel Quiz: 15 questions in 20 minutes using your complete printed Excel template Criteria Knowledge and Skills (KS 1.2)
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