Due: See AYN416 Canvas site/Modules/ About Assessment/ Assessment 2

Submissions: 1. Electronic submission through Canvas 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 Canvas

3. Completion of Excel quiz in Canvas

Type: Individual

Requirements:

The Assignment worth 20% has three (3) compulsory parts – Part A Reckon (7.5%), Part B Excel (7.5%) and Part C Reconciliation between Reckon and Excel (5%).

When to start:

Start Reckon (Part A) as soon as possible after topic 1. 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. It is recommended to note which journal each transaction is to be recorded and whether daily or monthly posting is required.

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 and note which ones will need recording in Reckon/ Excel and which ones are not relevant.

Assignment Goal:  to get the Reckon and Excel records to agree to the provided check figures and also to get the Reckon and Excel records to agree, including the correct profit.

Assignment Index:

Sam Schultz is the owner of a kitchen appliance store located in Brisbane that he established 3 years ago. He operates as a sole trader.  He does have an approved overdraft facility with his bank (ANZ).

Sam uses accrual accounting and prepares monthly adjusting entries and financial statements. Sam submits his Business Activity Statements (GST Return) quarterly on an accruals basis.

Sam 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 31 July, 2023.

Refer to Chart of Accounts below when preparing journals for the account numbers and names used.

Amazing Appliances: Chart of Accounts and Trial Balance as at 30 June, 2023

Refer to Chart of Accounts below when preparing journals.

*PAYG Tax Payable is tax withheld from staff wages owed to the government.

**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.

Accounts Receivable Subsidiary Ledger as at 30 June

Accounts Payable Subsidiary Ledger as at 30 June

Inventory Balances as at 30 June

Amazing Appliances uses a perpetual inventory system and sells inventory items indicated below. The stocktake at 30 June showed:

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.

July 2023 Transactions to enter into both Reckon and Excel where relevant:

The business transactions that occurred in July 2023 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 July 2023.

1.   July 1  Sold 4 ovens as a cash sale, $4,840 (including GST $440).

2.  July 1  Purchased a computer on credit from Review Computers, $1,386 (including GST $126).

3.  July 2   Purchased office supplies with cheque number 58, $1,100 (including GST $100).  Record this using the Office Supplies account.

4.  July 2   Sold 10 dishwashers on credit to Burrow Properties, invoice number MA32, $7,700 (including GST $700).

5.  July 3   Paid for electrical repairs for $605 (including GST $55) with cheque number 59.

6.  July 3  Purchased 40 dishwashers on credit from Westinghouse, $15,400 (including GST $1,400).

7.   July 4   Paid for prepaid insurance of $1,584 for 12 months effective 1 July (including GST $144) with cheque number 60.

8.   July 4 Hired a new staff member who will start on August 1 with an annual salary of $100,000.

9.  July 5   Sam withdrew $1,000 cash for personal use with cheque number 61 (no GST is applicable.)

10. July 5   Paid the monthly net wages of the staff of $4,200 with cheque number 62 (no GST is applicable.)

11. July 10   Sold 6 Refrigerators and 30 washing machines on credit to Graham Developments Invoice Number MA33, $38,610 (including GST $3,510).

12. July 11  Purchased 20 Washing Machines on credit from LG, $ 9,350 (including GST $850).

13. July 14  Paid Bayside Accountants the balance owing of $3,850 with cheque number 63.

14. July 21   Paid LG with a part payment of $16,500 with cheque number 64.

15. July 21   Issued a credit note to Graham Developments for return of 2 Washing Machines, Credit

Number 14, $1,870 (including GST $170).   (Retain as an available credit in Reckon).

16. July 22   Received $23,120 from Burrow Properties as payment on account.

17. July 26   Paid the monthly telephone and internet expense with cheque number 65, $924 (including GST $84).

18. July 26   Invoiced Studio Apartments for 20 Washing Machines and 20 dishwashers, Invoice Number MA34, $34,100 (including GST $3,100).

19. July 28   Received $7,000 on account from Graham Developments.

20. July 28 Returned 2 dishwashers to Westinghouse and received a credit of $770 (including GST $70).

21. July 28  Sold 6 Refrigerators as a cash sale, $10,560 (including GST $960).

22. July 28 Signed a 6-month agreement to rent additional storage space from September 1, 2023 for $2,090 monthly (including GST $190).

23. July 28   Sam lodged his quarterly Business Activity Statement (BAS return) and paid cheque number 66 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.

(Excel: Record each item in a separate row)

(Reckon: Use Write Cheques with a separate line each for GST & PAYG).

24. July 30   Paid for utilities expense for July with cheque number 67, $814 (including GST $74).

25. July 30   Paid for electrical repairs for $297, with cheque number 68 (including GST $27).

26. July 31   Received $22,000 from Studio Apartments as payment on account.

27. July 31 Bank Statement: Paid bank charges of $40 (no GST applicable). (Use Write Cheques function in Reckon)

28. July 31  Record the general journal entry below for $2,060 for the total PAYG tax withheld on the

monthly wages. (PAYG tax payable is tax withheld from staff wages owed to the government.)