ACCOUNTING PRACTICE SET
OBJECTIVES
The objective of the Accounting Practice Set is to provide students with a “hands on” approach to
identifying transactions
and of
measuring, recording, and communicating accounting infor
mation to
users in the form of financial statements.
This Accounting Practice Set consists of completing the accounting cycle for a sole trading service
entity for one month using EXCEL
and confirming your results by using the accounting software
package
QuickBooks
.
On completion of this Accounting Practice Set you should have d
emonstrated
that you
achieved the following Assurance of Learning Goals:
1.
Have knowledge and skills pertinent to a particular discipline (KS)
1.1
Integrate and apply discipli
nary theory and skills to practical situations
1.2
Incorporate the use of technology appropriate to the discipline and context
2.
Be a critical thinker and effective problem solver (CTA)
2.1
Identify, research and critically analyse information relevan
t to a business problem or
issue, be able to synthesise that information in order to evaluate potential solutions, make
recommendations or otherwise effectively address the problem or issue
You are required to complete and submit your accounting practice set in EXCEL using the template
provided on Blackboard.
You will confirm your results from the manual EXCEL system by also using
QuickBooks.
Your
Practice Set Excel
f
ile must contain
on the first page (Chart of Accounts)
a
footer which you
create containing your name and
s
tudent number. Do not handwrite this
–
you must enter
the details using Excel.
You must
sign the declaration on the first page
of the Excel file
that the practice set is your own
work
.
When you have completed the accounting practice set, you are required to print off the
EXCEL files and hand in that printed copy to your lecturer.
?
In the Print function, select Entire Workbook (th
ere should be
1
3
pages from the Chart of
Accounts to the Post Closing Balance)
?
Print three (3)
formula pages with row and column headings
(see top of next page):
o
Subsidiary ledger
o
Worksheet
o
Balance Sheet
?
Your final printed copy
cannot be
handwritten
?
T
o print formulas with rows and columns, press ‘Ctrl ~’ to show formulas. Then click on
Page Layout, Print Titles, and tick Row and Column Headings. Click on Print button to
print.
The pro forma document provided should not be altered in any way; there i
s no need to add
rows or columns to the spreadsheet. Please follow the printing instructions precisely. Please
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Advertising Revolution
note that in the past some students have had difficulty printing from a Mac. If any student uses
a Mac to complete the practice set, it is the
student’s responsibility to ensure they can correctly
print out the assignment. Penalties apply if the printing instructions are not followed. The
university provides computer access for you to complete and print your practice set
assignment. If you ha
ve any printing issues, please contact the IT Help Desk as lecturers are
not able to assist with printer or printing errors.
Use only Microsoft Excel, do not attempt to transfer the document to any other spreadsheet
software.
You will be able to start w
orking on the practice set after the lecture for Topic 5 when we cover GST
and Special Journals.
When you have completed the
Excel spreadsheet the transactions, including adjustments, are to be
journalised in QuickBooks and
an adjusted trial balance
, Prof
it and Loss Statement and Balance Sheet
printed
and submitted
.
Late submission penalties
will apply to students who fail to submit their practice set by the due
date and who have not been granted an extension.
Faculty policy is that a 10% penalty applies
for
each day late (or part thereof).
Extensions
will only be granted in
exceptional
circumstances. To be on the safe side, start the
practice set as soon as Topic 5 is completed
–
do not leave it until the week in which it is due.
ALL REQUESTS FOR EX
TENSIONS OR DEFERRED SITTINGS OF THE QUIZ
MUST BE
MADE
IN ACCORDANCE WITH THE INSTRUCTIONS ON
BLACKBOARD IN THE ASSESSMENT ITEM 2 FOLDER
MARKING SCHEME
—
WORTH 2
5
%
The total mark
for the Practice Set
is
2
5
%.
This consists of 1
5
% for completion of the
Practice
Set
, including the
QuickBooks
component,
and 10% for
the quiz, which demonstrates your
understanding and interpretation of the Practice Set.
?
The
1
5
% for completion
of the Practice Set is assessed by your lecturer checking off
each page
of the Pra
ctice Set
. When you print the Practice Set, you will have a total of 1
3
pages including
the Chart of Accounts and Opening Balances.
Each of the
1
3
pages
is
worth one mark each. If
you
fully
complete each page then you will receive one mark for each pag
e.
?
7
marks will be allocated to the correct use of formulas. Failure to follow instructions regarding
the insertion of the appropriate formulas in cells will result in loss of marks.
?
10 marks will be awarded for the correctness of the Quickbooks
adjust
ed
trial balance
, Profit and
Loss Statement, and Balance Sheet.
Total Marks = 30
marks
(
divided by 2 to get the
15%
)
.
Note 1: if you have not fully completed a page, then only part marks will be awarded for that
page.
Note 2:
the mark for Page 1 is for
the
correct footer.
Note 3: if you have not signed the declaration on the first page, the Practice Set will not
be marked.
?
The
10% for understanding and interpretation
is assessed by way of a 20 question
quiz.
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At the start of the lecture when you hand
in the Accounting Practice Set, you will be given a
20
minute
,
OPEN BOOK
QUIZ
containing
20 questions
about items in the Practice Set. You will
have the Practice Set with you when you answer the Quiz. Each question is worth one mark. The
Quiz will be ma
rked out of 20 and then divided by 2 to give a percent out of
10%
.
Quiz questions
–
examples
?
What is the total
fees
revenue for the month?
?
What is the total of the non
–
current assets at 1
July
on the Comparative Balance Sheet?
What is
the formula fo
r cell
D:
22
of the Cash Receipts Journal
More practice quiz questions will be provided for you on the Blackboard site.
ACCOUNTING PRACTICE SET C
HECKLIST
: Note that this is the correct order of
performing the steps for the Practice Set
.
Use the fo
llowing CHECKLIST to ensure that you have fully completed the Practice Set.
Tick each item as you complete it.
COMPLETE THESE 8 STEPS. Do
not
insert or delete any rows/columns in the spreadsheet.
YES
1.
Record the transactions in the appropriate journal
s. (Narrations are not required)
2.
Post
daily
to
the subsidiary ledgers
. Post
daily
from
the general journal.
Any
other
journal columns are posted at month end.
Include posting references where indicated
3.
Total and rule off all special journals. Po
st from the
special
journals to the general
ledger.
Include posting references where indicated
4.
Prepare Schedules of Accounts Receivable and Accounts Payable
and
ensure the
control accounts reconcile with their subsidiary ledgers.
5.
Prepare the Unadjusted
Trial Balance as at
31
st
July
using the
appropriate
columns on
the worksheet. Complete the worksheet using the adjusting entry information.
Record
the adjusting entries in the general journal and post to the general ledger
.
6.
Record closing entries in the
general journal and post to the general ledger.
7.
Prepare the Income Statement (not classified), Statement of Changes in Equity and
Classified Comparative Balance Sheet. (A comparative balance sheet contains the
balances for
31
st
July
and for 1
st
July
a
lso.)
8.
P
repare from the
general
ledger, a Post Closing Trial Balance as at
31
st
July
.
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Advertising Revolution
How can I make sure my practice set is correct?
B
elow are the correct
values
you should obtain.
If you don’t, please check your work again.
CHECK VALUES
TO ASSI
ST YOU
TO
COMPLET
E
THE SET ACCURATELY:
Total of the Cash at Bank column in the Cash Payments Journal
$
100,620
Total of the Wages Expense column in the Cash Payments Journal
$
14,466
Total of the Cash at Bank column in the Cash Receipts Journal
$
66,7
50
Balance of the Accounts Receivable Account at
31 July
$
94,919
Balance of the Accounts Payable Account at
31 July
$
50
,
483
Balance of GST Clearing account at
31 July
—
credit
$
4,
532
Balance of the PAYG Tax Payable Account in the Unadjusted Trial B
alance
column of the Worksheet
–
credit
$
2,996
Balance of the Superannuation Expense Account in the Unadjusted Trial
Balance column of the worksheet
$
0
Total of the Unadjusted Trial Balance Columns of the Worksheet
$
275,967
Total of the Adjustments C
olumns of the Worksheet
$
36,534
Total of the Adjusted Trial Balance Columns of the Worksheet
$
284,55
1
Net profit for
July
$
16,488
BACKGROUND AND FACTS
Kelda Murphy is the owner of Advertising
Revolution, an advertising business that she
established several years ago, after graduating from QUT. She operates the business as a
sole trader.
She provides advertising services to clients in a broad range of industries and has received
several indus
try awards for her professional services. She currently employs a full
–
time
graduate and utilises other casual staff when she needs additional personnel.
The business is operated from rented office space in West End where she has a 5 year lease.
She
has a variety of clients and she offers them different payment terms depending on the
size and industry of the client as well as the size of the work that is to be undertaken. Some
established clients are offered either 14 or 30 days credit. Other client
s are required to pay
50% deposit before the work is commenced. For new clients, Kelda insists on the entire
balance being received by cheque before the work is undertaken.
Some years ago, she borrowed money from ANZ bank to upgrade the office and comp
uter
equipment and to develop a website to advertise her services. The loan of $60,000 is
repayable over 10 years and the interest rate is 8.5% payable monthly. The portion of the
loan repayable within 12 months is classified as a Current Liability on th
e Balance Sheet and
the remainder of the loan owing is classified as a Non
–
Current Liability.
Kelda submits her Business Activity Statements quarterly on a cash basis.
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