ASSIGNMENT - PREPARE FINANCIAL STATEMENTS FOR NON-REPORTING ENTITIES

Part A: Written (Question and Answer)

TASK 1 - Conrad Computers is a business enterprise and registered for GST. Answer the following questions in relation to the business.

(a) Does Conrad Computers need a Tax File Number or can Chris and Selina use their personal Tax File Numbers?

(b) What would be the consequences [list 2] if Conrad Computers did not apply for an ABN?

(c) Why does Conrad Computers have to register for GST?

(d) Who pays income tax on the profits of the business - Chris, Selina or Conrad Computers?

(e) Chris is also treasurer of the local Lions organisation. Conrad Computers must operate within the business framework. Which aspect of the business framework must the business comply with when quoting for a new computer for the club?

(f) As treasurer of the local Lions organisation, list 6 differences in the accounting procedures of his business and the local Lions organisation, a community not-profit organisation.

(g) In accordance with the "Statement of Accounting Concepts" is Conrad Computers a "reporting" or "non-reporting" entity? Give 2 reasons for your answer.

(h) What is the difference between "general purpose financial reports" and "special purpose financial reports"?

(i) As a result of the above answer, the financial reports of Conrad Computers are usually prepared in accordance with which 4 Accounting Standards and who ultimately approves their accuracy (as per Policies and Procedures)?

(j) What is the difference between budgeting and forecasting from a reporting perspective?

(k) What is ration analysis and provide 3 types of ratios that can be used to analyse?

(l) What is depreciation and provide three calculation methods?

Part B: Project

Accounting Policies and Procedures

TASK 2 - Before starting the following tasks the participant should read the extract of the company policies and procedures for Conrad Computers Accounting, provided that the start of this assessment.

Setting up the Data File for Conrad Computers

TASK 3 - Open the ConradComputers V19 2013 REVISED data file and sign in as the Administrator. There is no password.

TASK 4 - Change the name of the company to include your name so that your printouts can be identified in the classroom.

TASK 5 - Check the Accounts List for accuracy. You should check the following:

(a) All accounts have been allocated the correct default Tax Code to automate GST when entering data.

(b) All headings have the sub-total option selected.

(c) All accounts are on the correct level so that the financial reports will be printed in an appropriate structure.

(d) Check that the Cash Flow Classifications have been set up accurately so that the Statement of Cash Flow report will be accurate.

(e) Make the necessary adjustments to the data file.

(f) Ensure you view the budget within the Accounts List.

PRINTOUT 1 - Print a copy of the Standard Balance Sheet dated 31 May 2013

(a) Print a copy of the above Balance Sheet and check the presentation of the Balance Sheet making sure levels and sub-totals are correct. Print the 'report levels' of data at level 3.

Compile Data

TASK 6 - You are required to enter the following data in the data file of Conrad Computers.

All entries will be dated in the month of June 2013.

PRINTOUT 2 - Print a copy of the Bank Reconciliation on 30 June displaying cleared and outstanding entries

Reconcile the bank account.

Checking the Accuracy of Your Data Entry

TASK 7 - Check the accuracy of your data entry using the Transaction Journal.

You will now print a copy of the Transaction Journal for the month and check the accuracy against the transactions. If you find a discrepancy, you will need to rectify and reprint the reprint.

PRINTOUT 3 - Transaction Journal for the month of June as required above

TASK 8 - Run the "Company Data Auditor" for the month of June 2013 to check for any discrepancies or inconsistencies.

Checklist:

(a) Accounts Receivable reconcile with the General Ledger

(b) Accounts Payable reconcile with the General Ledger

(c) No future dated transactions

(d) No deposits on orders

(e) No discrepancies or inconsistencies in your GST reports that is not accurate?

TASK 9 - Reconcile GST at the end of June - you will have to display the required reports. [Check with policies and procedures for reporting method]

GST Collected in GST Report for June $

Balance of GST Collected in the 30 June Balance Sheet $

GST Paid in GST Report for June $

Balance of GST Paid in the 30 June Balance Sheet $

PRINTOUT 4 - Trial Balance as at 30 June 2013

End of Month and End of Year Adjustments - Manual

Set out below is a list of adjustments which must be made to the accounts for June and the financial year.

TASK 10A - Using the Worksheet provided on page 16, record the Trial Balance figures from Printout 4 in the Trial Balance column.

TASK 10B - In the Adjustment column of this worksheet enter the following adjustments.

Adjustments for the month of June:

(a) Account for the business insurance expense for June.

(b) Account for rent income for June.

(c) Gross wages owing for June - $2,000.00.

(d) Account for Labour performed but not yet billed - $1,000.00 ex GST. [Wages have been paid to these employees in June.]

(e) Account for private use of the internet for the year - $220.00 including GST. [Allocate to Chris.]

Adjustments for the financial year:

(f) Stock of Computers on hand: $20,000.00 Stock of Parts on hand: $6,000.00

(g) Make a provision for doubtful debts as per policies and procedures. [Round up the figure to the nearest dollar.]

(h) Depreciation to write off:

Computer/Office Equipment: $4,000.00

Motor Vehicles: $5,000.00

(i) Provide for the following employee entitlements:

Holiday Leave: $3,500.00

Long Service Leave: $4,000.00

TASK 10C - Calculate the Adjusted Trial Balance on the Worksheet.

End of Month and End of Year Adjustments - Computerised

TASK 11 - Enter the adjustments listed in Task 10B into your data file.

(a) As per Policies and Procedures, adjustments for June should be dated 30 June.

(b) Adjustments for the financial year should be dated P13 [*30/6/13]

PRINTOUT 5 - Print a Transaction Journal Listing for 30 June until 30 June 2013

PRINTOUT 6 - Adjusted Trial Balance 30 June 2013

(c) Compare this printout with the Adjusted Trial Balance column of your worksheet.

End of Financial Year reports - manual

TASK 12 - Complete the Profit and Loss and Balance Sheet columns of the Worksheet.

End of Financial Year reports - computerised PRINTOUT 7 - Profit and Loss for 2013 [Accrual] for the year PRINTOUT 8 - Balance Sheet as at *30/6/13

TASK 13 - Compare the reports printed above with the Worksheet Profit and Loss and Balance sheet columns in Task 12.

PRINTOUT 9 - Statement of Cash Flows for 2013

TASK 14

(a) Has the business had to raise funds by borrowing to meet their commitments?

(b) In this business, what is the net cash amount from operating and what did most of the net cash from operating get spent on?

TASK 15

PRINTOUT 10 - Profit and Loss Budget Analysis for the year

Study the following Budget report. You should be able to spot what could be a data entry error or incorrect account allocation or it could be extraordinary circumstances in the accounts for the year.

(a) Write below a brief description of what could be an issue or an error in the accounts.

(b) Discuss this issue with your Workplace Assessor and follow any instructions given.

Attachment:- Assignment File.rar