Computer System Design and Related Services
- Subject Code :
ACCY901-T3
PART A
Orca Ltd operates the Computer Services business located at 100 Mercey Street, Wollongong, NSW 2500 Australia. Orca began his business on 1 October 2022. Orca keeps his accounting records for business activities separate from his records for personal activities.
The following is the Chart of Accounts for Computer Services:
|
Cash at Bank |
$ 41,000 |
Motor Vehicle |
$0 |
|
Depreciation Expense 0 |
|
Accumulated Depreciation – Motor Vehicle |
0 |
|
Accounts Receivable 0 |
|
Service Revenue |
0 |
|
Supplies |
3,000 |
Cleaning Expense |
0 |
|
Capital – Sam Smith |
39,000 |
Supplies Expense |
0 |
|
Insurance Payable |
5,000 |
Accounts Payable |
0 |
Further information:
- When you register the business name in brackets, put your student number – Computer Services (Student No).
- Industry: Computer System Design and Related Services.
- Hint: Set account balances and the business starting day (1 October 2022): use Accounting – Advanced – Set Conversion Balance.
Required:
- a) Set up the Computer Services business in the Xero software.
- b) Prepare the chart of accounts in Xero software for Computer Services business. c) Generate a chart of accounts for Computer Services (Submission Part 1).
PART B
The following transactions for Computer Services occurred during October 2022. 1. 4 October: Purchased a second-hand motor vehicle from Wollongong Cars for $8,000 cash.
- 8 October: Paid cleaning expense $2,000 for services provided by Cleaning Queen Ltd.
- 9 October: Purchase office supplies $600 from Office Works on account, due on 10 November 2022.
- 15 October: Sam deposited $ 16,000 cash to his business bank account from the services provided.
Required:
- a) Record the above transactions in appropriate journals for Computer Services using Xero. (Generate the journal report at the end, Submission Part 2). Hint: to generate journal report, select “Accounting”, then “Reports”, in “Taxes and Balances”, find “Journal Report”, define correct “Date range”, then click on “Update”.
- b) Prepare a trial balance as at 31 October 2022. (Generate trial balance at the end, Submission Part 3)
PART C
The following adjusting entries occurred on 31 October 2022.
- Supplies balance at the end of the month was $1,200.
- Motor Vehicle has a useful life of 2 years and with residual value $600. Required:
- a) Record the above adjusting entries for Computer Services. (Generate the journal report at the end, Submission Part 4).
- b) Prepare an Income Statement for Computer Services as at 31 October 2022. (Generate income statement at the end, Submission Part 5).
2
Part A: Register Company and set Chart of accounts (15 marks)
|
• Correctly register and complete the business details in Xero. • Correctly set up a chart of accounts for the business |
Mark allocation: • Full marks are awarded if all components are correct and the chart of accounts is produced. • Partial marks awarded for partially correct components (e.g. 1.5 marks; 1 mark & 0.5 marks) • Failure to generate a chart of accounts will result in zero marks. |
Part B: Record set of transactions in journals and prepare a trial balance (20 marks)
|
• Record transactions in appropriate journals in the Xero accounting system and generate journal report. • Publish a trial balance. |
Mark allocation: • If transactions are recorded correctly in appropriate journals, full marks are awarded; otherwise, partial marks are allocated (e.g. 1 mark; 1.5 marks & 0.5 marks) • For correct trial balance, award full marks; otherwise, partial marks are allocated (e.g. 1 mark, 1.5 marks & 0.5 marks) • Failure to generate the journal report to show all transactions and the failure to generate a trial balance will result in zero marks. |
Part C: Record a set of adjusting entries and prepare an income statement (15 marks)
|
• Record the adjusting entries in the Xero accounting system. • Following adjusting entries, you are required to produce an income statement. |
Mark allocation: • Award full marks if the required adjusting entries have been recorded accurately; otherwise, partial marks are allocated (e.g. 1.5 marks; 1 mark & 0.5 marks) • For correct income statement, award full marks; otherwise, partial marks are allocated (e.g. 1 mark, 1.5 marks & 0.5 marks) • Failure to generate the journal report to show adjusting entries and failure to generate the income statement will result in zero marks. |
Are you struggling to keep up with the demands of your academic journey? Don't worry, we've got your back! Exam Question Bank is your trusted partner in achieving academic excellence for all kind of technical and non-technical subjects.
Our comprehensive range of academic services is designed to cater to students at every level. Whether you're a high school student, a college undergraduate, or pursuing advanced studies, we have the expertise and resources to support you.
To connect with expert and ask your query click here Exam Question Bank
