Integrated Accounting Project

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 Accounting Project consists of completing the accounting cycle for a sole trader retail business for July 2018 using both manual records and Reckon accounting software.

Part A EXCEL Accounting Task Instructions

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 July transactions in the following journals: cash payments, cash receipts, purchases, sales and general journal. (Opening balances at 30 June are in the general ledger and subsidiary accounts).

3) 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 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. SJ24, PJ22, CPJ38, CRJ27, GJ54, GJ55, and GJ56).

4) Prepare a trial balance as at 31 July 2018, in the trial balance columns of the worksheet.

5) Complete the worksheet using the required adjusting entries below for the month of July:

A) Accrued Wages
Wages owing as at 31 July are $1,260.

B) Insurance
Noted in the transactions above, Mary prepaid 12 months of insurance on July 1.

C) Rent
Mary prepaid 3 months of rent on June 30. (Refer Prepaid Rent general ledger account).

D) Depreciation - Store Equipment
Annual Depreciation on Store Equipment has been calculated at $1,176.

E) Depreciation - Computers
Annual Depreciation on Computers has been calculated at $8,400.

F) Office Supplies Expense
On 31 July, Mary counted her office supplies and noted that there was $3,830 of supplies left.

6) Prepare and post the adjusting entries.

7) Prepare the following statements for month ended 31 July 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 30 June. (Use separate columns for comparison of 30 June values with 31 July values).

There is a need to split Sales and Sales Returns separately in the manual system as discussed earlier.

For Income Statement business function expense classification, use the following information: Selling Expenses: Wages

Administrative Expenses: Depreciation - Computer Equipment, Depreciation - Store Equipment, Insurance Expense, Marketing Expense, Office Supplies Expense, Rent Expense, Telephone and Internet Expense, Utilities Expense

Finance Expenses: Bank Charges

8) Prepare and post the closing entries.

9. Prepare a post-closing trial balance. Confirm whether the total of the subsidiary ledgers agree with the respective control accounts in the general ledger for accounts receivable and accounts payable by indicating Y or N in the space provided.

Part B Reckon Accounting Task Instructions

Before Starting Reckon Component:

It is vital that you complete the 2 Essential Reckon exercises for your Assignment under Learning Resources/ Reckon Support Materials before you start the Reckon component of this assignment otherwise you may waste significant amounts of time.

Reckon software is to be used to prepare computerised records in Part B to ensure they agree with the manual records. 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 Excel and Reckon 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. Camping King 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:

Key in ANZ Bank Account for the name of the bank account. Click on or after 30/06/2018. 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).

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 that you do wish to allow the user to access all areas of Reckon. Click Finish. Click Close.
4) Choose the option File/ Close Company/(Log Off and Open the Camping King.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 30 June 2018. (Addresses are not required for this project for customers or suppliers).
5) Run an Audit Trail Report 1/7 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 accounts as at 30 June 2018.

7) Run a trial balance as at 30 June 2018 to ensure all opening balances are accurately entered. Process a general journal entry to correct the items in the trial balance which require adjustment including processing a general journal entry to correct Uncategorised income, Uncategorised expenses and Opening Balance (equity). (See Reckon Practice Exercises for steps involved).

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 July transactions in Reckon, opening new accounts as necessary. For Reckon, you do not need to use the account numbers provided in the Chart of Accounts.

Tips:
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 ANZ bank account, not Undeposited Funds).
Dates: ensure that dates are entered correctly in the month of July.
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.

Regularly save and backup your files. Do not rely on 1 file location 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 31 July 2018 and ensure all account values agree to the unadjusted manual trial balance prepared in Part A except for Sales and Sales Returns. (Reckon Unadjusted Trial Balance total should be $269,332 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 above in Reckon.

12) Print or save to pdf the following reports from Reckon Software: (From the report, choose File Save as PDF or File Print Report to PDF). Combine into 1 pdf if possible for ease of marking. See below for screenshots to fit your printing to 1 page in width so that it can be marked.

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).

1. Journals: 1 July to 31 July 2018 (Reports Accountant)
2. Trial Balance as at 31 July 2018 (Reports Accountant)
3. Profit and Loss Standard: 1 to 31 July 2018* (Reports Company & Financial)
4. Balance Sheet as at 31 July 2018 (Reports Company & Financial)
5. Inventory Valuation Summary as at 31 July 2018 (Reports Inventory)
6. Customer Balance Detail as at 31 July 2018 (Reports Customers & Receivables)
7. Supplier Balance Detail as at 31 July 2018 (Reports Suppliers & Payables)
8. Audit Trail Report (Date Range: 1/7 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.

Part C Reconciliation of Manual and Reckon Accounting Task

Ensure all Reckon reports generated in Part B agree with manual reports generated in Part A (except for different treatment of Sales Returns in Reckon as Sales Returns is netted off Sales in Reckon not displayed separately as it is in Excel.)

Note that there will be minor differences in the naming used in Reckon (e.g. Trade Receivables, Trade Creditors and Tax Payable have equivalent names to the 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 as they are fine to leave as they are.

For Reckon, you do not need to use the account numbers provided in the chart of accounts.

Check that the Excel and Reckon Check Values match those provided earlier in these instructions.

To receive marks for Part C, you must submit your Excel and Reckon reports and key numbers must reconcile to each other including:

- Gross Profit
- Net Income or Net Profit
- Total Assets
- Total Equity
- Accounts Receivable and Accounts Payable

There is nothing additional needed to be supplied or typed for Part C as the marker will confirm that Excel and Reckon do reconcile in your reports.

Support Provided:
- Materials are on Blackboard to assist with Excel and Reckon
- Consultation with Staff and Postgraduate Learning Advisors who can assist including with use of Reckon
- Frequently Asked Questions on Blackboard to enable any clarifications or answer any common questions - this will be developed as students make enquiries
- IT Helpdesk can assist with installation of Reckon
- Echo recording will be released to assist with the Assignment with some demonstrations in Excel of using linked formulas and using the spreadsheet

Attachment:- Assignment Instructions.rar