ACCOUNTING PRACTICE SET

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 Page 2 of 10 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. Page 3 of 10 Advertising Revolution 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 . Page 4 of 10 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. PLACE THIS ORDER OR A SIMILAR ORDER WITH US TODAY AND GET AN AMAZING DISCOUNT :)