You are the owner of a top of the range mobile phone retailer called Model Technologies. You have been operating for one year and are trying to get a foothold in the extremely competitive market of mobile phones. Currently, you have a flagship store located in central Auckland where you sell most of your products from. You also offer a repair service for mobile phones.

You sell three different types of Mobile Phones:

□ Smart Model

□ Sharp Model

□ Super Model

The Chart of Accounts is provided as csv file (you do not need to make changes to the Chart of Accounts). Please note that the company has TWO bank accounts, one is business account (090), and the other is saving account (091). Please make up your account numbers as: 01-1234-1234567-090; 01-1234-1234567-091

You have 6 tasks to complete:

1. Input Conversion Balances

2. Create Historical invoices for the opening Accounts Payable and Accounts Receivable balances

3. Set up inventory item quantities as the opening balances with correct GST settings

4. Complete transactions for the month of April 2022

5. Import the bank statement and reconcile the bank account

6. Create reports

Task 1: Conversion Balances

Import the Chart of Accounts provided. Then, input the following information from the Trial Balance as Conversion Balances.  Don’t forget to set your Conversion Date to April 2022

 (Please note that there is ONE account for Inventory, ONE for Cost of Goods Sold and ONE of Sales)

Model. Technologies

Trial Balance as at 31 March 2022

Account Name	Debit	Account Name	Credit
Bank (Business Account)	$ 960,000.00	Accounts Payable	$ 775,000.00
Accounts Receivable	$ 1,250,000.00	Vehicles Accum Dep	$ 2,350.00
Inventory	$ 2,146,000.00	Office Equipment Accum Dep	$ 1,600.00
Vehicles at Cost	$ 14,100.00	Repair Equipment Accum Dep	$ 1,850.00
Office Equipment at Cost	$ 9,600.00	ANZ Loan	$ 2,500,000.00
Repair Equipment at Cost	$ 11,100.00	Capital	$ 1,110,000.00
	$  4,390,800.00		$  4,390,800.00

Task 2: Historic Invoices

(a) Record the following customer balances owing as at 31 March 2022:

WPC International Tech $890,000;

Tech World $360,000

(b) Record the following supplier balances outstanding at 31 March 2022:

EMR Manufacturing $555,000

Travis Electronics $220,000

Don’t forget to save your conversion balances before moving on to the next Task

Task 3: Inventory Opening Balance Setup with correct GST settings

The following information relates to the 3 items of inventory that make up the primary activities of the business:

	Selling Price (excl GST)	Cost Price (excl GST)	Units on Hand
Smart Model	$1,250.00	$1,000.00	564
Sharp Model	$1,800.00	$1,075.00	800
Super Model	$2,375.00	$1,900.00	380

To enter the opening balances including the inventory quantities, you need to import your Opening Balances csv file.

Go to Business > Products and services > top right corner Import

  

Task 4: Transaction Processing

Complete the transactions for the month of April 2022. These are stated in Appendix A.

Note: for specific sale/purchase transactions, the actual selling/purchase price of each phone can be different from the default price in the Inventory setup. Use the default price if no other information given in the transaction description.  

Task 5: Bank Reconciliation

Once you have completed the transaction processing, you will need to reconcile the business bank account for the month of April.  The bank statement csv file is available on Moodle. You should complete this after transaction processing.

Task 7: Reporting

Finally, you will need to produce the following reports:

1) Journal Report (31 Mar 2022 – 30 Apr 2022; Order by Journal Date)

2) Profit or Loss Statement (period 1 April 2022 – 31 Mar 2023)

3) Balance Sheet (as at 31 Mar 2023; compared with 1 year)