ACC20015 Accounting Information Systems AssignmentSemester 2, 2022 Submission information: Due Date: END OF WEEK 10 This assignment counts 25% towards your final assessment. The assignment must be compled in a group of 2 students. This assignment requires you to use computer accounting software (XERO) for a small business to record business transactions for a small business. It covers many of the common transactions of everyday business in Australia, including Goods and Service Tax (GST). It is not meant to be a data entry exercise. You are required to carefully understand each transaction, how the software records the transactions in ledgers and how reports are created. You must strictly follow the assignment guidelines and must use the XERO education version (the access given by the convenor) when recording the data in XERO education accounting package (do not use your own XERO trial version). Your assignment will not be considered for marking I you use your own version or the XERO 30-day free trial, as the convenor does not have the access to your selected XERO trial versions.General information Adrian Ariel recently purchased a carpet business for $100,000. Since then, the business has grown into a successful importer and seller of fine carpets and rugs. AAA Carpets and Rugs (ABN 65 992 718 643) is situated at 133 Clare Street, Boydtown, Melbourne, Vic 3957. AAA Carpets and Rugs purchase their inventory from a number of suppliers. In addition to sales to individual customers the business also supplies some local carpet and rug
Untitled Page 1 of 8 ACC20015 Accounting Information Systems Assignment Semester 2, 2022 Submission information: Due Date: END OF WEEK 10 This assignment counts 25% towards your final assessment. The assignment must be compled in a group of 2 students. This assignment requires you to use computer accounting software (XERO) for a small business to record business transactions for a small business. It covers many of the common transactions of everyday business in Australia, including Goods and Service Tax (GST). It is not meant to be a data entry exercise. You are required to carefully understand each transaction, how the software records the transactions in ledgers and how reports are created. You must strictly follow the assignment guidelines and must use the XERO education version (the access given by the convenor) when recording the data in XERO education accounting package (do not use your own XERO trial version). Your assignment will not be considered for marking I you use your own version or the XERO 30-day free trial, as the convenor does not have the access to your selected XERO trial versions. General information Adrian Ariel recently purchased a carpet business for $100,000. Since then, the business has grown into a successful importer and seller of fine carpets and rugs. AAA Carpets and Rugs (ABN 65 992 718 643) is situated at 133 Clare Street, Boydtown, Melbourne, Vic 3957. AAA Carpets and Rugs purchase their inventory from a number of suppliers. In addition to sales to individual customers the business also supplies some local carpet and rug businesses. Page 2 of 8 Goods and Services Tax AAA Carpets and Rugs (AAA) is regeistered for GST and charges charges on all inventory sales and services provided to customers and pays GST on inventory purchases and most business expenses. Non-current asset acquisitions also incur GST. The rate of GST is 10%. Employees AAA Carpets and Rugs employs two university students on a casual basis, Ashana Anatolia anfd Andrew Arak. They are both paid an hourly rate of $25 per hour. They are each owed $200 wages each at 1 September. Note: Do not use the employee section of Xero; record the wages expense as a cash payment. Inventory The folllowing is a list of inventory on hand and suppliers at 31 August 2021: Quantity On hand Item code Item description unit Cost price unit Sales price Supplier 5 AR Akstafa rug 500 750 Oriental Carpets 6 MHR Manluk hall runner 350 550 Persian Imports 8 NR Nineveh rug 2,200 2,990 Persian Imports 5 TC Tabriz carpet 630 870 Taba Tabai Each of the above iterms of inventory are shown as excluding GST. The inventory is purchased on credit under the terms of payment required by the suppliers. Once an order is placed the supplier will deliver the inventory the same day. AAA Carpets and Rugs uses the perpetual system and the first-in-first out method to record inventory transactions. Other services Adrian and Andrea offer the additional services to customers. Revenue from Cleaning and Repairs is recorded separately from the sale of inventory. Cleaning: AAA Rugs and Carpets charge a fee of $70 per hour (excluding GST) for the specialised cleaning of antique and old rugs and carpets. Terms of payment are strictly cash at the time the service is provided. Repairs: AAA Rugs and Carpets offers a repair service for a fee of $50 per hour (excluding GST). Terms of payment are strictly cash at the time the service is provided. Page 3 of 8 Supplier information Name & ABN number Address Terms Last invoice date Account balance Persian Imports 50 566 722 363 47 Browns St., Mainsville, NSW 20154 net 30 days 10 Aug $5,500 Oriental Carpets 54 343 454 987 112 High St., Melbourne VIC 3008 net 30 days 20 Aug $24,200 Taba Tabai 45 222 422 765 77 Sunset Rd., Darwin, NT 8012 net 30 days 22 Aug $11,990 Customer information Name & ABN number Address Date of last invoice Account balance Raver Rugs 45 787 222 123 90 Srinagar Rd., Brunswick Vic 3056 22 Aug. $3,410 Cairo Carpets 33 454 555 321 Chodor Cres., Thomastown Vic 3074 25 Aug. $3,707 Sorel Interiors 62 444 333 543 11 Main Street Kew Vic 3101 27 Aug. $2,990 Terms of payment are net 30 days from the date of the invoice. All cash sales are given a discount of 5%. (Note: this is not a trade discount) Bank loan AAA Rugs and Carpets borrowed $80,000 from Eastern Bank for the business. On the last day of each month a total of $2,125 is paid to Eastern Bank for the loan which comprises $1,500 principal and $625 interest. Prepaid Advertising AAA Rugs and Carpets paid for a seven month advertisement on 1 August for $770 (including GST) in the Leader newspapers. The advertisement appears in numerous local Leader newspapers throughout the city. Page 4 of 8 Trial Balance as at 31 August 2021 $ $ 600 Bank account (628908-239643100) 28,493 610 Accounts Receivable 10,107 620 Prepaid expenses 600 630 Inventory 25,350 640 Cleaning materials 670 710 Delivery van 28,000 711 Accumulated depreciation-delivery van 1,380 720 Shop fittings 4,500 721 Accumulated depreciation-shop fittings 1,600 800 Accounts Payable 41,690 810 Wages payable 400 815 Electricity expense payable 310 820 Net GST Payable 2,140 830 Loan-Eastern Bank 18,500 880 Owners capital-Adrian Ariel 31,700 Total 97,720 97,720 September transactions Sept. 1 Paid Prime Real Estate rent of $6,600 (GST inclusive) for September and October [chq 309] 2 Credit sale to Sorel Interiors: 2 Tabriz carpets & 2 Nineveh rugs.[invoice 902] 2 Paid for printing to Officeworks (GST inclusive). [Reference: chq. 310] $473 Paid fuel and other motor vehicle expenses to GP Motors, 281.60 (GST inclusive).[Reference: chq. 311] 3 Credit purchase of 5 Nineveh rugs.[Reference: N35] 3 Sorel Interiors paid the balance owing on 1 September. 4 Paid Tru energy the accrued electricity expense owing.[Reference: chq.312] 4 Credit sale to Raver Rugs: 3 Akstafa rugs, 3 Manluk hall runners, 2 Nineveh rugs.[Invoice 903] 5 Paid Mason Stewart $1,540 (GST inclusive) for a new cash register. It is estimated that the cash register will have an effective life of 10 years with nil residual value.[Reference:chq.313] 5 Credit purchase from Persian Imports: 5 Akstafa rugs, 6 Manluk hall runners. [Reference: AM56] 6 AAA paid Persian Imports the balance owing at 1 September.[Reference: chq 314] 6 Credit purchase of 5 Tabriz carpets.[Reference: T5] 7 Paid Ashana Anatolia and Andrew Arak each for 15 hours worked plus the amount owing at 1 September.[Reference: chq. 315, Reference: chq 316] 7 AAA Carpets and Rugs purchased cleaning materials on credit from Klean King (ABN 72 344 521 211), $308 (GST inclusive). Klean King requires payment terms of net 30 days. This is recorded in a separate account to the purchase of inventory.[Reference: KK1] 8 Cash sales: 2 Mamluk hall runners, 1 Nineveh rug, 2 Tabriz carpets.[Invoice 904] 9 Paid monthly loan repayment to Eastern Bank. AAA Carpets and Rugs paid a additional $1,000 off the loan principal. [Reference: chq. 317] 10 Paid Oriental Carpets the balance owing at 1 September. [Reference: chq 318] Page 5 of 8 10 Adrian withdrew $1,000 for personal use.[Reference: chq 319] 11 Paid Persian Imports for inventory purchased on 3 September.[Reference: chq 320] 11 AAA Carpets and Rugs received payment for 9 hours cleaning and 14 hours for repairs. [Reference: C210, Reference R122] 12 Raver Rugs paid the balance owing at 1 September. 12 Credit purchase of 7 Manluk hall runners and 6 Ninevah rugs.[Reference: MN76] 13 Received payment from Cairo Carpets for balance owing at 1 September. 14 Adrian notices that 1 Manluk hall runner is damaged and returns it to the supplier, Persian Imports and receives a full credit for the damaged carpet. 15 Paid Ashana Anatolia and Andrew Arak each for 20 hours worked.[Reference: chqs. 321, Reference: chq 322] 15 Paid telephone expenses of $572 (GST inclusive) to Telstra.[Reference: chq 323] 15 Credit sale to Cairo Carpets: 3 Akstafa rugs, 3 Nineveh rugs, 3 Manluk hall runners.[Invoice 905] 16 Paid Taba Tabai the balance owing at 1 September and for inventory purchased on 6 September. [Reference: Invoice chq. 324] 17 Credit sale to Raver Rugs: 2 Akstafa rugs, 3 Tabriz carpets. [Invoice 906] 17 Cash sales – received payment for 6 hours cleaning and 6 hours for repairs.[Invoices C210 and R123] 18 Paid motor vehicle expenses to GP Motors, $341 (GST inclusive).[Reference: chq. 325] 19 Credit purchase of 8 Akstafa rugs.[Reference:A8] 20 Credit sale to Raver Rugs: 4 Akstafa rugs, 5 Manluk hall runners, 1 Tabriz carpet.[Invoice 907] 20 Cairo carpets paid for inventory purchased on 15 September. 21 Paid the GST outstanding on 1 September 2018.[Reference: chq. 326] 22 Raver Rugs paid for inventory purchased on 4 September. 24 Paid Persian Imports $20,000.[Reference: chq. 327] 24 Credit sale to Cairo Carpets: 4 Akstafa rugs, 3 Nineveh rugs, 2 Tabriz carpets.[Invoice 908] 25 AAA Carpets and Rugs received payment for 18 hours cleaning and 12 hours for repairs.[Invoices C211 and R124] 26 Cairo Carpets returned 2 Akstafa rugs. These were undamaged and returned to inventory. 26 Credit purchase of 6 Tabriz carpets. [Reference: T6] 27 Cairo Carpets paid for inventory purchased on 24 September. 28 Cash