1 Assessment Task Manual Accounting Ship\'em In&Out PDF

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Assignment question for last semester Manual Accounting Ship'emIn&Out...

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RMIT Classification: Trusted

Assessment Task 1: 25% Manual Recording Case Study – Ship’emIn&Out Pty Ltd IMPORTANT: Part A: Manual Recording To record transactions manually, you must use the Excel files provided via email. Handwritten work or Excel files other than the Excel files provided on the unit Canvas are not eligible for submission. So therefore, you will not record a score for this assessment piece.

READ THESE INSTRUCTIONS. THEY DETAIL HOW TO MAXIMISE YOUR RESULT. The DUE DATE for this assignment is 21st November 2021 at 5.30pm Case Study Background Ship’emIn&Out Pty Ltd (ABN 12 345 678 901) operates as a company and you are the accountant for them. Ship’emIn&Out Pty Ltd is a wholesale business specialising in electronic equipment made in. The business is in its first month of the new year which started on 1st October 2021. Business Background The business was established by Maurice Moneybags from his garage and has now expended to a small warehouse and two part time employees. Maurice believes that with careful management that the business could expand to have a larger workforce within a few months and is looking to expand the operation soon. The products that are sold are exclusively available to Ship’emIn&Out Pty Ltd, so the aim is to expand the reputation of the products on offer and have a leading online business specialising in electronic products within 2 years. Another goal of Maurice’s is that the business introduces accounting software this year as the current system is manual.

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RMIT Classification: Trusted Employees Ship’emIn&Out Pty Ltd employs two casual assistants. Michelle Pappas works as a salesperson, and Tony Edwards works in the warehouse filling orders. Each employee works between 30 to 40 hours per week, depending on the demand and the timing of the shipments of inventory. Payday is every second Thursday. The following information is used to calculate their wages:

Name

Role

Gross pay-

Michelle Pappas

Salesperson

Per hour ($) 35

Tony Edwards

Warehouse assistant

Tax file number 123 456 789

35

234 567 890

At the 30thSeptember 2021 the business owed the employees 43 hours to Michelle and 43 hours to Tony. (See wages payable in the trial balance) Goods and Services Tax (GST) There is no GST applied in this part of the assignment. All transactions should be recorded without GST. Merchandise Inventory The following is a list of closing inventory and the suppliers as of 30th September 2021. Quantit y on hand 8 9

Item Description Code

Cost Price

Sale Price

Supplier

SMS

Sanyo Music Station

$190

$380 Sanyo Pty Ltd

EST

EZ Delux Smart TV

$500

$750

EZ AUST. Pty Ltd

The required inventory is purchased mostly on credit under the terms of payment required by the suppliers.

The business has a good relationship with each of the suppliers once the

company places an order, the suppliers will deliver the inventory free of charge the same day. Due to this good relationship, the suppliers have offered discount terms, indicated below.

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RMIT Classification: Trusted

Suppliers account balances as of 30th September 2021: Name

Address

Sanyo Pty Ltd. EZ AUST. Pty Ltd

Account Balance

Date of Purchase

2/15 net 30

$2,850

26th September

2/15 net 30

$6,000

19th September

ABN

Terms of Credit

21 Macquarie St Melbourne 3000

45 667 778 888

35 Lorimer St South Melbourne 3205.

56 778 889 999

Customer Information:

Ship’emIn&Out Pty Ltd sells most of its inventory strictly on a cash basis, but the business has three credit customers. The valued customers have been offered discount terms and these terms of payment are listed below. The outstanding account balance and the date of their purchase is also indicated in the account information. Terms of Credit

Date of Invoice

60 504 030 201

1/15 net 30

20th September

$6,410

300 Smith street Collingwood 3068

50 999 555 666

1/15 net 30

26th September

$7,150

296 Riversdale road Camberwell 3021

89 911 222 333

Net 30

Name

Address

Big HiFi

450 Bourke St Melbourne 3000

The Electronic Store Rivoli HiFi

ABN

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Accoun t Balance

$0

RMIT Classification: Trusted Chart of accounts You can find your chart of accounts in the excel document in the CANVAS shell.

Ship'emIn&Out Pty Ltd Trial Balance as at 30th September 2021 Account Number 1001

Account name

Debit

Cash at Bank

Credit

8,419.00

1010

Accounts Receivable

13,560.00

1020

Inventory

6,020.00

1030 1035

Prepaid Rent Prepaid Insurance

1,200.00

1040 1110

Stationery Supplies Computers

545.00 3,000.00

1111

Accumulated Depreciation – Office Computers

1120 1121

Warehouse Equipment Accumulated Depreciation – Warehouse Equipment

2001

Accounts Payable

2010 3001

Wages Payable Share Capital

3010

Retained Earnings

3050

Dividends

100.00 22,000.00 6,600.00 8,850.00 3,010.00 35,000.00 1,184.00 54,744.00

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54,744.00

RMIT Classification: Trusted

Transactions: October 2021 Date 3

Description Paid rent to Landlord Pty Ltd for the next 2(two) months - $2,000

5

Received and paid Vehicle expenses from Holden $125

7

Received payment from The Electronic Store Pty Ltd for September account.

8

Received payment from Big HiFi for September account.

9

Paid Sanyo Pty Ltd. for September account.

10

Paid EZ AUST. Pty Ltd. for September account.

11

Pay day. Michelle was paid for 60 hours and Tony was paid for 60 hours, which includes wages owing from September. (see the TB from September) Purchased more inventory 21 x SMS, 25 x EST, both on credit

12 13 15

17

Returned 4 SMS to Sanyo Ltd due to the inventory being damaged Credit sales to Electronic Store for the following items: 13 x SMS, 19 x EST. The Electronic Store returned 2 SMS, due to an order mistake, the goods were returned to inventory. Cash sales to Rivoli HiFi. Inventory sold: 10 x SMS and 12 x EST

19

Paid Telstra invoice for Telephone Expenses $500

25 28

Pay day. Michelle was paid for 65 hours and Tony was paid for 65 hours. Borrowed money from the ABC bank, $17,000 at an interest rate of 6%

16

Adjustments at 31st October 2021 1. Depreciation of computer equipment is $3,000 per annum. 2. Depreciation of Warehouse equipment is $1,800 per annum. 3. Accrued wages: Michelle – 16 hour and Tony 16 hours. 4. Stationery on hand as of 31st October 2021 totalled $ 350. 5. The portion of prepaid insurance expired as of 31st October 2021 is $300.

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RMIT Classification: Trusted Part A: Manual Recording (25%) IMPORTANT: Part A Manual Recording To record transactions manually, you must use the Excel files provided on the unit Canvas. Handwritten work or Excel files other than the Excel files provided on Canvas are not eligible for submission.

Required: 1. Record October month’s transactions in the general journal. 2. Record end of month adjustments in the general journal. 3. Prepare the cash at bank general ledger account (only) using the running balance format.

Important Information 1. To record transactions manually, you must use the Excel files provided on the unit Canvas. Handwritten work or Excel files other than the Excel files provided on the unit Canvas are not eligible for submission. 2. The assignment must be accompanied with an assignment cover sheet listing your full name and student identification number. 3. It is the student’s responsibility to keep a backup copy of the assignment until all the assignment process is completed and marks are on Canvas. 4. Any assignments handed in late will be penalised as explained in the course guide.

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