Only question 1 and 2 needs to be done. question 1 is based on a small scale organization and not a big organization.
Question One
Selection of Accounting Software
Accounting professional are often asked by clients for advice on choices for accounting software. This question concerns ascertaining a business' requirements and preferences, and preparing a report with your recommendations.
Required:
a) Contact a small business and prepare questions to determine requirements and expectations of an accounting system. Provide the questions and brief details of the business owners responses.
b) Prepare a report with your suggestion for an appropriate software solution for the business. Use your experience with MYOB, Reckon and another alternative, along with research, to compare their suitability. Your reasoning and depth of comparison will be what is assessed, not the particular software chosen.
c) Prepare a PowerPoint presentation that summarises your findings and recommendation. The PowerPoint slides must utilise at least three advanced PowerPoint features. Each student will conduct their class presentation in the final class, Friday 20th May.
Note:
1. The name of the company, with contact details, is to be provided in part a)
2. There will be a discussion opened on Moodle for each student to list the name of the business they are interviewing. Only one student can interview each business - first in best dressed.
3. Any references (websites, magazines, books) are to be listed in an Appendix following the report.
Question Two
Single Entry Accounting Systems
Amazeballs maintains a good set of records but is preparing to convert to a full double-entry system. He provides you with the following information from his records:
Assets and liabilities at the start and end of 2015 financial year. The numbers marked with a "?" do not need to be calculated - they have been omitted to stop you cheating to calculate the profit figure.
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Amazeballs
Statement of assets and liabilities
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1/7/2014
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30/6/2015
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$
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$
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Assets
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|
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Cash at bank
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21 300
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209 030
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Trade debtors
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11 000
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51 000
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Trading stock
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12 100
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27 500
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Prepaid Insurance
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8 500
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10 200
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GST Paid
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0
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?
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Shop Equipment - at cost
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85 000
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65 000
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Accumulated depreciation
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(40 000)
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(36 100)
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Total Assets
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$97 900
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?
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Liabilities
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Trade creditors
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8 600
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30 800
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Accrued Wages
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3 000
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11 200
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Revenue Received in Advance
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0
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1 000
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GST Collected
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0
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?
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Total liabilities
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11 600
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$88 200
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Net assets
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$86 300
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?
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Owner's equity
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|
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Capital - M McMillan
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$86 300
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$86 300
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Plus Profit
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Total owner's equity
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$86 300
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?
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Total
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GST
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Net of GST
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Cash received and paid during the year
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$
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$
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$
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Receipts
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Received from accounts receivable
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317 500
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317 500
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Cash sales for the year
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115 500
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10 500
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105 000
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Sale of equipment
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11 000
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1 000
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10 000
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Rental revenue
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13 200
|
1 200
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12 000
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|
|
|
|
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Payments
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|
|
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Payments to accounts payable
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101 000
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101 000
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Cash purchases
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20 570
|
1 870
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18 700
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Wages paid
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83 000
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83 000
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Insurances paid
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19 800
|
1 800
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18 000
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Other expenses
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45 100
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4 100
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41 000
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Additional information:
- the sale of equipment was an item that cost $20 000 (excluding GST) and had been depreciated to $11 000 at the time of sale. No further depreciation applied to this item.
- depreciation on other equipment is 15% x written-down value
Required:
Using the information provided above, complete the Income Statement.