MYOB Setup 2 - step1 PDF

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29/11/2020

Create accounts and opening balances

MYOB AccountRight Practice Set Australian Edition 3, Updated for MYOB v19 Bookmark

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Completed By: AngelaT202001477

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Feedback: Create accounts and opening balances This is a feedback page. Please review this page carefully. It includes the original questions along with grading of your responses and detailed feedback. After you have reviewed this feedback page, click Continue at the bottom of this page for the next page of your practice set.

Setup guide After creating the company file for Hi-Fi Way, Hermione asks you complete the setup of the new company file in MYOB. She explains that the setup work needs to be completed in two main stages. In the first stage, she provides you with the company's accounts list (chart of accounts) and the opening trial balance so that you can set up the company's general ledger in MYOB. During the time that you are working on the first setup stage, Hermione tells you that she will ask you to answer several questions about MYOB to verify that you know how to set up the general ledger in MYOB. Hermione informs you that upon completion of the first stage, you will be asked to set up more company records in MYOB.

Instructions 1. Please take care to set up your own MYOB accounts list using the exact information provided on this page. Every student has different setup information and will receive different sets of transactions to record. All questions on this page and subsequent pages of your practice set are tailored to your unique MYOB company file. Your answers will be graded as incorrect if you use the company file of any other student to complete the given questions.

• •

Completed: 30% (approximately) Remaining pages: up to 7.00 hours

Time frames are only a guide. You may take more or less time to complete each page.

Your grading outcome (still in progess) 2. One of the key set up steps below is to adjust the default Accounts List provided by MYOB so that it correctly reflects the specific chart of accounts required by Hermione. To prepare for this task, refer to the Accounts List [Detail] report that you previously generated from MYOB or print a new one if needed. Then compare that report to the chart of accounts provided by Hermione (below) to identify: • • •

the default accounts that need to have their name modified the default accounts that need to be deleted the new accounts that need to be created.

Note that the extra steps to delete some of the linked accounts are available in the 'Setting up accounts list' section of the quick reference guide .

Awarded Points

Total Points

Prior to this page

11

24

On this page

26

46

After this page Total

339 409

MYOB Learning Centre • •

MYOB Learning Centre Quick reference guide

Business information

Information from previous pages

You will need all of the information shown below to set up the accounts list for Hi-Fi Way in MYOB.

• • • • •

a. Set global preferences

0 37

Welcome page General instructions Navigating your practice set Accounting policies and procedures Creating the company file

Set the preference of your MYOB company file so that you are able to modify transactions in MYOB: •

From the Setup menu, select Preferences

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In the Security tab of the Preferences window, ensure that there is no tick placed in the Transactions CAN'T be changed box.

b. Tax code list You are asked to set up the tax code list for Hi-Fi Way as shown below. To set up the company's tax codes, go to the Lists menu and select Tax Codes. This opens the Tax Code List where details of the tax codes used in the company file are recorded. Note that all other tax codes that are not in the list below must be deleted so that you are able to modify the company's accounts list.

Code

Description

Tax Type

Rate

Tax Collected

Tax Paid

CAP

Capital Acquisitions

Goods & Services Tax

10%

2-1310 (GST Collected)

2-1330 (GST Paid)

FRE

GST Free

Goods & Services Tax

0%

2-1310 (GST Collected)

2-1330 (GST Paid)

GST

Goods & Services Tax

Goods & Services Tax

10%

2-1310 (GST Collected)

2-1330 (GST Paid)

ITS

Input Taxed Sales

Goods & Services Tax

0%

2-1310 (GST Collected)

2-1330 (GST Paid)

N-T

Not Reportable

Goods & Services Tax

0%

2-1310 (GST Collected)

2-1330 (GST Paid)

c. Accounts list (chart of accounts) information The accounts list that you are asked to set up for Hi-Fi Way is presented below. For many of the account descriptions, Hermione has chosen to use the default descriptions and abbreviations provided by MYOB. To modify the default accounts list that was created during the 'creating a new company file' process, from the options provided on the left side of the Accounts Easy Setup Assistant, click Accounts List. This opens the 'Set up the Accounts List to meet your business needs' window. Next, use that window to modify account names, add new accounts, delete the unwanted default accounts, and assign appropriate tax codes to detail accounts. Check out the instructions above for a suggestion on how best to do this and take care to assign the correct tax code to each account. It will make the recording of transactions easier and more accurate. Note that the extra steps to delete some of the linked accounts are available in the 'Setting up accounts list' section of the quick reference guide .

Hi-Fi Way Chart of Accounts As of 31 December 2019 Account # Account

Type

Dr/Cr Header/ Detail

1-0000

Assets

Asset

Debit

Header

1

1-1000

Current Assets

Asset

Debit

Header

2

1-1100

Cash On Hand

Asset

Debit

Header

3

1-1110

Cheque Account

Bank

Debit

Detail

4

N-T

1-1180

Undeposited Funds

Bank

Debit

Detail

4

N-T

1-1190

Electronic Clearing Account

Bank

Debit

Detail

4

N-T

1-1200

Accounts Receivable

Accounts Receivable Debit

Detail

3

N-T

1-1210

Less Prov'n for Doubtful Debts

Other Asset

Debit

Detail

3

N-T

1-1300

Inventory

Other Asset

Debit

Detail

3

N-T

1-1400

Office Supplies

Other Asset

Debit

Detail

3

GST

1-1500

Prepaid Rent

Other Asset

Debit

Detail

3

GST

1-3000

Non-current Assets

Asset

Debit

Header

2

1-3100

Property & Equipment

Asset

Debit

Header

3

1-3110

Property & Equipment at Cost

Other Asset

Debit

Detail

4

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Level Tax Code

CAP 2/6

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1-3120

Property & Equipment Accum Dep Other Asset

Debit

Detail

4

N-T

2-0000

Liabilities

Liability

Credit

Header

1

2-1000

Current Liabilities

Liability

Credit

Header

2

2-1200

Accounts Payable

Accounts Payable

Credit

Detail

3

2-1300

GST Liabilities

Liability

Credit

Header

3

2-1310

GST Collected

Other Liability

Credit

Detail

4

N-T

2-1330

GST Paid

Other Liability

Credit

Detail

4

N-T

2-1400

Payroll Liabilities

Liability

Credit

Header

3

2-1410

Salaries Payable

Other Liability

Credit

Detail

4

N-T

2-1420

PAYG Withholding Payable

Other Liability

Credit

Detail

4

N-T

2-1700

Interest Payable

Other Liability

Credit

Detail

3

N-T

2-1800

Short Term Loans

Other Liability

Credit

Detail

3

N-T

2-2000

Long-Term Liabilities

Liability

Credit

Header

2

2-2100

Bank Loans

Other Liability

Credit

Detail

3

3-0000

Equity

Equity

Credit

Header

1

3-1100

Share Capital

Equity

Credit

Detail

2

N-T

3-8000

Retained Earnings

Equity

Credit

Detail

2

N-T

3-9000

Current Year Earnings

Equity

Credit

Detail

2

N-T

3-9999

Historical Balancing

Equity

Credit

Detail

2

N-T

4-0000

Income

Income

Credit

Header

1

4-1100

Sales Revenue

Income

Credit

Detail

2

5-0000

Cost of Sales

Cost of Sales

Debit

Header

1

5-1100

Cost of Sales

Cost of Sales

Debit

Detail

2

6-0000

Expenses

Expense

Debit

Header

1

6-1100

Depreciation Expense

Expense

Debit

Detail

2

N-T

6-1800

Office Supplies Expense

Expense

Debit

Detail

2

N-T

6-1930

Salaries Expense

Expense

Debit

Detail

2

N-T

6-2100

Rent Expense

Expense

Debit

Detail

2

N-T

6-2200

Telephone Expense

Expense

Debit

Detail

2

GST

6-2420

Electricity Expense

Expense

Debit

Detail

2

GST

6-2500

Bank Charges

Expense

Debit

Detail

2

FRE

6-2600

Bad Debts Expense

Expense

Debit

Detail

2

N-T

8-0000

Other Income

Other Income

Credit

Header

1

8-1000

Interest Income

Other Income

Credit

Detail

2

9-0000

Other Expenses

Other Expenses

Debit

Header

1

9-1000

Interest Expense

Other Expense

Debit

Detail

2

N-T

N-T

GST

N-T

ITS

FRE

d. Trial balance ~ December Use the Accounts Easy Setup Assistant to enter the opening balances of detail accounts as at 1 January 2020. The following trial balance provides the closing balances of all detail accounts as at 31 December 2019 which become the opening balances of those accounts as of 1 January 2020. In the Accounts Easy Setup Assistant, before clicking the Next button in the 'Enter your opening balances' window, answer Hermione's questions below on entering account opening balances.

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Hi-Fi Way Trial Balance As of 31 December 2019 Account # Account

YTD Debit ($)

YTD Credit ($)

1-1110

Cheque Account

77,946

1-1180

Undeposited Funds

0

1-1190

Electronic Clearing Account

0

1-1200

Accounts Receivable

1-1210

Less Prov'n for Doubtful Debts

1-1300

Inventory

1-1400

Office Supplies

1-1500

Prepaid Rent

1-3110

Property & Equipment at Cost

1-3120

Property & Equipment Accum Dep

10,167

2-1200

Accounts Payable

31,328

2-1310

GST Collected

2-1330

GST Paid

2-1410

Salaries Payable

2-1420

PAYG Withholding Payable

2-1700

Interest Payable

0

2-1800

Short Term Loans

0

2-2100

Bank Loans

48,000

3-1100

Share Capital

50,000

3-8000

Retained Earnings

82,278

3-9000

Current Year Earnings

0

3-9999

Historical Balancing

0

4-1100

Sales Revenue

5-1100

Cost of Sales

6-1100

Depreciation Expense

6-1800

Office Supplies Expense

6-1930

Salaries Expense

6-2100

Rent Expense

6-2200

Telephone Expense

3,512

6-2420

Electricity Expense

3,872

6-2500

Bank Charges

6-2600

Bad Debts Expense

8-1000

Interest Income

9-1000

Interest Expense

30,624 612 100,700 354 0 36,000

9,275 5,035 0 1,860

185,505 129,853 10,167 2,315 16,672 0

37 1,458 0 480

Question on modifying the default accounts list (Q=112.Q.M.CS.IA.Q2)

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When modifying the default accounts list so that it exactly matches the accounts list for Hi-Fi Way above, some accounts need to be created, deleted, or kept. Before you begin modifying the default accounts list, for each of the accounts with the account numbers listed below, Hermione asks you to select whether you need to: 1. create that account because it appears in the accounts list for Hi-Fi Way but it is not listed in the default accounts list 2. delete that account because it appears in the default accounts list but it does not appear in the accounts list for Hi-Fi Way or 3. keep that account because it appears in both accounts lists. Account # To be created To be deleted To be kept 1-3220 1-1500 2-1140 2-1330 2-1420 2-2200 4-3000 6-2600

Question on setting up the accounts list (Q=112.F.M.CS.GL.Q1)

After you have finished setting up the accounts list for Hi-Fi Way, Hermione asks you to perform the following steps in MYOB and then identify the task that can not be performed in the window that appears after those steps have been completed. 1. From the main menu bar, click Setup and select Easy Setup Assistant. 2. In the Easy Setup Assistant window that appears, click the Accounts icon. In the Accounts Easy Setup Assistant that appears after the above steps are performed, MYOB does not allow users to use that setup assistant to: delete existing accounts export your own account list from your MYOB software change existing accounts create new accounts

Question on entering account opening balances (Q=112.F.M.CS.AB.Q2)

In the Accounts Easy Setup Assistant, before you click the Next button in the 'Enter your opening balances' window, Hermione asks you to specify the names of the accounts for which their balances are listed as positive numbers. The names of the accounts for which their balances are listed as positive numbers are: Property & Equipment Accum Dep, Cost of Sales, and Interest Expense Cheque Account, GST Paid, and Depreciation Expense Less Prov'n for Doubtful Debts, GST Paid, and Interest Income PAYG Withholding Payable, GST Collected, and Cost of Sales

Question on entering account opening balances (Q=112.Q.M.CS.AB.Q1)

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When you are using the Accounts Easy Setup Assistant to enter account opening balances into MYOB, Hermione also asks you about some of the amounts that you entered into the 'Enter your opening balances' window. For each of the accounts listed below, complete the Opening Balance column using the amounts that you entered into the 'Enter your opening balances' window within the Accounts Easy Setup Assistant. Note that if you entered the the opening balances as negative numbers into MYOB, here you must also enter your answers as negative numbers. Account Name

Opening Balance ($)

Accounts Receivable Less Prov'n for Doubtful Debts Property & Equipment at Cost Property & Equipment Accum Dep

36949 -739 45000 -11227

GST Collected

7600

GST Paid

5638

Feedback

Account Name Accounts Receivable Less Prov'n for Doubtful Debts Property & Equipment at Cost Property & Equipment Accum Dep GST Collected GST Paid

Opening Balance ($) 30,624 -612 36,000 -10,167 9,275 -5,035

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