ACCG6011 Principles of Accounting Assignment

Introduction

The Xero assignment is designed to provide introductory accounting students with an overview of the Xero Accounting Software by completing a one-month accounting cycle for a fictional business. This is an online assignment, and it is worth 15% of your overall grade in ACCG6011. An invitation email is sent to every student’s MQ email with the individual access link to Xero. You can access the assignment from 24 April to 18 May

Assignment Objectives

To perform a variety of activities and transactions in Xero, particularly:

• Complete company information
• Add or modify general ledger accounts
• Add or modify customer or supplier contacts
• Record money received from customers and payments to suppliers
• Record other cash receipts and payment (cash received in advance and prepayment for insurance)
• Record adjusting entries
• Finalise and close accounts
• Prepare and print various accounting reports including Journal Report, Profit & loss statement and Balance Sheet.

Mark Allocation (30 Marks)

A total mark of 30 is allocated based on the following criteria:

• Correct student name and student ID (2 marks)
• Journal entries (24 marks)
• Profit and loss statement for the correct reporting period (2 marks)
• Balance sheet ended on the correct reporting date (2 mark)

Your mark will be converted to 15% towards your overall assessment.

Company Background

Assume that you established ABC cleaning (a fictional business) on 1 March 2023 in Sydney. The company provide cleaning services for residential and commercial requests in Sydney’s Eastern suburbs. The company currently have five contractors on call. It is now coming towards the end of the first month (i.e., 31 March 2023). You are required to complete the following tasks.

Please note that the transactions in this fictional business may vary from the cleaning business in practice. Ignore GST and company tax implications.

1. Enter Company and bank Information:

Enter the following company information and leave the rest organisation details as blank.

• Legal/Trading name: Your name Your Student ID (For example: PEIPEI PAN1234567)
• Line of business: Cleaning Service
• Organization type: Company

(Note: Please do not change “Display name”. Leave other information, such as Austrlaian Business Number blank.)

Enter the following bank information.

• Commonwealth Bank (skip connect with your bank)
• Business Saving Account
• Account Type: Everyday (day-to-day)
• BSB: 012-620; Account Number: 1234567

2. Enter the following transactions for March, 2022

(Reminder: Please enter the correct dates to record transactions. If you do not enter the correct dates, then xero system will default the dates as ones when you record the transactions.)

1/03/2023  Invested $75 000 cash as the starting deposit

1/03/2023  Purchased and paid two cleaning equipments from Aspel Cleaning equipments (Reference: Inv146).

                    The unit price is $1 600.

                   (You need to add a new account “Cleaning equipment”. Use “1450” as the Acount Code)

1/03/2023  Purchased and paid cleaning supplies from Sanitizer Solutions total $1 200 (Reference: 896).

                   (You need to add a new account “Cleaning supplies”. Use “1350” as the Account Code)

2/03/2023   Paid one-year insurance policy to InsuranceUs for $2 400 (Reference: 8799)

2/03/2023   Ordered the company uniform from NNT Uniform for $500 on account. The unit price of the uniform is $50.

                   The payment is due on 11 March. (Reference: 5798) Ignore tax

10/03/2023  Two contractors completed a residential cleaning task within one hour. $150 was paid by the client.

                   (Invoice#: INV-0001; Customer: Jane)

10/03/2023  Received the total of $3 000 (i. e. $1 000 x 3 tasks) in advance from ABCLogistics for three commercial

                    cleaning tasks (Invoice#: INV-0002).

                    (You need to add a new account “Revenue received in advance”. Use “2250” as the Account Code)

11/03/2023   Paid $500 to NNT Uniform

18/03/2023   Three contractors completed the first commercial cleaning task for ABCLogistics in the night shift.

19/03/2023  Two contractors completed a residential cleaning task within two hours. $450 was paid by the client.

                     (Invoice#: INV-0003; Customer: Tom)

21/03/2023  One contractor completed an end-of-lease cleaning within two hours. $250 was paid by the client.

                     (Invoice#: INV-0004; Customer: Jerry)

25/03/2023   Three contractors completed the second commercial cleaning task for ABCLogistics in the night shift.

28/03/2023   Paid $300 to PromoteUs for marketing (Reference: Inv369)

29/03/2023   Received electricity bill of $73 from AGL. The due date is 15 April. This bill will be paid in April.

31/03/2023   Conducted a stock count and cleaning supplies on hand at 31 March total $400

                      (Add a new account “Supplies expense” account. Use “5450” as the Account Code)

31/03/2023   Recorded insurance expense for March

31/03/2023   Salaries of $ 880 are owed at 31 March and will be paid on 2 April.

3. Export the following reports for the period 1/03/2023 to 31/03/2023 from Xero:

1. Journal Report;
2. Profit and Loss Statement;
3. Balance Sheet