MBS544 ACCOUNTING PROCESSES SEMESTER 1, 2020 ASSIGNMENT Instructions: You are required to complete this assignment which is worth 20 marks in groups of 3 students. The assignment is due for submission...

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Accounting


MBS544 ACCOUNTING PROCESSES SEMESTER 1, 2020 ASSIGNMENT Instructions: You are required to complete this assignment which is worth 20 marks in groups of 3 students. The assignment is due for submission on Monday 18 May 2020 by 5pm. The assignment is to be submitted via the submission portal set up on LMS under session 10. Each assignment will be carefully marked by the same person and students are advised to make sure they reference their written work appropriately to avoid any problems with plagiarism or collusion. It is important that students do this assignment themselves and do not copy from other students. If you are unsure about any aspects of this assignment, please email your tutor for assistance. Only one submission is required for each group but individuals are advised to do the assignment themselves so they understand the process which will be examined at the end of the course. It is each group’s responsibility to ensure that the final report is neatly presented, marks will be deducted for poor presentation. You are expected to use references where appropriate to support your analysis. Students are encouraged to work in groups and to maintain contact via email or social media. Groups are not expected or required to meet in person. Any students who are adversely affected by this requirement are advised to contact the Unit Coordinator. External students can choose to do the assignment with another external student or they can complete the assignment on their own. External students are required to submit their assignment through the assignment portal set up on LMS. Business Background Zennith’s Musical Instruments Pty Ltd has been in business in Peth since July 2013. The Company was started by David Zennith and operates a shop which sells musical instruments on a wholesale basis to other businesses on credit and cash terms. The Company’s share capital consists of 1,134,000 ordinary shares, issued at $1 each, that are owned by various members of the Zennith family. The company enjoys a combination of staff to operate the business. The company has a financial year end of 30 June and prepares adjusting entries at the end of the financial year. The business is registered with the ATO for the goods and services tax (GST), and its Australian Business Number (ABN) is 78 303 238 978. It reports and pays amounts owing for GST quarterly via the business activity statement (BAS). The business has elected to use the accrual basis of accounting for both accounting and GST purposes. Accounting policies BAD AND DOUBTFUL DEBTS The business uses the direct write-off method when accounting for bad bets as they only occur infrequently. INVENTORY The business maintains a periodic inventory system. PREPAYMENTS Expenses paid in advance for their use, such as insurance, are initially recorded as assets. Any used portion at the end of period is entered into the journal as an expense. PROPERTY, PLANT AND EQIUPMENT The business has adopted the ATO rates of depreciation for all depreciated assets. These rates are based on the ATO’s estimate of useful life. The straight-line method is used for the calculation of depreciation on these assets. Amounts calculated are rounded to the nearest dollar. ACCOUNTING RECORDS To ensure efficiency of its accounting procedures, the company uses the following special journals to maintain its accounting records. · General journal (GJ): to record all transactions that cannot be recorded in the special journals NOTE: All purchase and sales returns are recorded in the general journal · Sales journal (SJ): to record all sales of goods or services on credit, and GST collected · Purchases journal (PJ): to record all credit purchases of goods for resale, and GST paid · Cash receipts journal (CRJ): to record all receipts of cash, including cash sales of goods or services. · Cash payments journal (CPJ): to record all payments made on the business’s cheque account, including cash purchases of goods for resale. · Accounts receivable and accounts payable subsidiary ledgers; separate accounts are maintained for each customer and each supplier · General ledger: separate accounts are maintained for income, expense, asset, liability and equity accounts. ACCOUNTING PROCEDURES On a daily basis, all relevant source documents are collected and transactions recorded in the appropriate journals. Transactions recorded in the ‘other accounts’ columns and all entries relating to accounts or inventory items in the subsidiary ledgers are posted daily. On a monthly basis, special journals are totalled and posted after the bank statement has been received and any missing items have been recorded. A worksheet is then prepared from the general ledger and a monthly income statement and balance sheet are produced, together with schedules of accounts receivable and accounts payable. At the end of the year, adjusting and closing general journal entries are prepared and posted to the general ledger accounts. The chart of accounts includes the following accounts: 151 Accumulated depreciation – Showroom Fittings, 201 Interest Payable, 202 Utilities Payable, 203 Wages Payable, 204 Salaries Payable, 205 Income Tax Payable, 206 Dividends Payable, 302 Dividends Declared, 303 Profit or Loss Summary, 602 Depreciation Expense – Showroom Fittings, 603 Depreciation Expense – Equipment, 604 Supplies Expense, 605 Rent Expense, 606 Insurance Expense, 608 Interest Expense, 610 Income Tax Expense, 614 Bad Debts Expense. An Unadjusted Trial Balance and Chart of Accounts at 31 May 2019 has the following account balances. All accounts have normal debit and credit balances. UNADJUSTED TRIAL BALANCE as at 31 May 2019 NO ACCOUNT NAME Debit ($) Credit ($) 100 Cash at Bank 570,017.7 101 Accounts Receivable Control 261,954 102 Store Supplies 151,011 103 Inventory 781,200 104 Prepaid Store Rent (paid 1 March 2019) 739,620 105 Prepaid Insurance (paid 1 Nov 2018) 11,340 110 GST Paid 436,747.5 150 Showroom Fittings 510,300 160 Equipment 173,250 161 Accumulated Depreciation - Equipment 85,050 200 Accounts Payable Control 168,953.4 211 GST Collected 400,591.8 250 Mortgage Loan (due 31 July 2043) 606,942 300 Share Capital 1,134,000 NO ACCOUNT NAME Debit ($) Credit ($) 301 Retained Profits 963,522 400 Sales Revenue 4,045,734 402 Sales Returns 8,757 405 Discount Received 24,192 500 Purchases 1,926,855 502 Purchase Returns 10,143 600 Freight-Out 2,898 601 Wages Expense – Sales Staff 968,121 607 Advertising Expense 43,848 609 Utilities Expense 58,464 611 Sundry Expenses 3,024 612 Salaries Expense – Office Staff 760,662 613 Discount Allowed 31,059 7,439,128.2 7,439,128.2 Schedule of Accounts Receivable as at 31 May 2019 Note: Zennith’s Musical Instruments offers all customers Credit Terms 2/10, n/30 unless otherwise stated. Acc No. Account Invoice date Amount ($) 101-1 Bach Cellos 27 May 104,781.60 101-2 Mozart Guitars 16 May 52,945.20 101-3 Brahms Pianos 23 April 71,656.20 101-4 Beethoven Trumpets 11 May 32,571 261,954 Schedule of Accounts Payable as at 31 May 2019 Acc No. Account Invoice date Terms Amount ($) 200-1 Strauss Synthesisers 29 May 2/10, n/60 47,817 200-2 Vivaldi Violins 22 May 1/10, n/45 121,136.40 168,953.40 The following transactions occurred during June 2019 and are inclusive of GST where relevant Week 1 1 – Bach Cellos paid the entire balance of its account that was still outstanding. – Delivered goods to Mozart Guitars for $75,121.20 and issued invoice #910. Issued Cheque #153 to pay $8,316 for delivery costs of inventory to their premises. 3 – Paid the amount owing to Strauss Synthesisers. Cheque #154 was sent. 4 – Total cash sales for the week were $21,205.80. Week 2 8 – Brahms Pianos paid $30,076.20 toward the amount it owes us. 9 – Made a purchase from Vivaldi Violins for $64,449 for boutique lighting. The date of invoice was 8 June. Invoice No. VV08. 9 – The firm issued Cheque #155 for the purchase of store supplies amounting to $6,098.40. 10 – Bach Cellos purchased inventory of $75,675.60. Invoice #911 was issued. 11 – Some of the boutique light fittings purchased on 7 June from Vivaldi Violins were the wrong design. Returned inventory in exchange for a Credit Note of $20,790. 12 – Total cash sales for the week were $28,967.40. Week 3 15 – Purchased inventory from Strauss Synthesisers for $106,029. The invoice was dated 14 June. Invoice No. SS14. 15 - Paid office staff salaries of $73,458. Cheque #157 was issued for payment. Cheque #158 was issued to pay sales staff wages, $62,370. 16 – Sold inventory to Brahms Pianos for $136,798.20 on invoice #912. Issued Cheque #156 to pay for delivery costs of $10,395. 16 –18 – The company issued Cheque #159 to pay the amount still owing to Vivaldi Violins. 19 – Total cash sales for the week were $27,512.10. Week 4 22 – Brahms Pianos returned $25,918.20 of inventory purchased on 14 June. Issued a Credit Note for the transaction. 23 – Issued Cheque #160 $12,600 to pay for the annual gift the Company donates to the Smith Foundation Charity Fund. The gift is to be recorded as a sundry expense in the accounts. 24 – Purchased inventory from Vivaldi Violins worth $103,257. The date of the invoice was 22 June. Invoice No. VV09. 25 – Received the total amount owing from Brahms Pianos. 26 – Total cash sales for the week were $43,243.20. Week 5 28 – Mozart Guitars paid the entire balance of its still outstanding account. 29 – Reduced $83,160 of the amount owing to Vivaldi Violins and Cheque #161 was issued. 29 – A dividend of $177,100 was declared to the Company shareholders. However, the dividend will not be paid until September 30, 2019. Paid sales staff wages, $62,370 and Cheque #162 was issued to meet the payment. 30 – Issued additional shares to the owners of the Company for cash, and $126,000 was received and banked. Total cash sales for the week were $25,779.60. INSTRUCTIONS · You are required to create your own accounting records to record this information. You can
zennith-music-store-pty-ltd-1-lou3rok3.docx
Answered Same DayMay 08, 2021

Answer To: MBS544 ACCOUNTING PROCESSES SEMESTER 1, 2020 ASSIGNMENT Instructions: You are required to complete...

Neenisha answered on May 14 2021
146 Votes
Journal Entries for the month of June
    Journal Entries
    as on June 30, 2019
    
    
    
    
    Date
    Particulars
     Debit ($)
     Credit ($)
    01/06/19
    Cash
     1,02,686
    
    
    Discount Allowed
     2,096
    
    
     Accounts Receivables (Bach Cellos)
    
     1,04,782
    
    
    
    
    01/06/19
    Accounts Receivables (Mozart Guitars) (#910)
     82,633
    
    
     Sales
    
     75,121
    
     GST Collected
    
     7,512
    
    
    
    
    01/06/19
    Freight Out
     8,316
    
    
     Cash (#153)
    
     8,316
    
    
    
    
    03/06/19
    Accounts Payable (Strauss Synthesisers)
     47,817
    
    
     Cash (#154)
    
     46,861
    
     Discount Received
    
     956
    
    
    
    
    04/06/19
    Cash
     23,326
    
    
     Sales
    
     21,206
    
     GST Collected
    
     2,121
    
    
    
    
    08/06/19
    Cash
     30,076
    
    
     Accounts Receivables (Brahms Pianos)
    
     30,076
    
    
    
    
    09/06/19
    Purchases
     64,449
    
    
    GST Paid
     6,445
    
    
     Accounts Payable (Vivaldi Violins) (Inv No VV08)
    
     70,894
    
    
    
    
    09/06/19
    Store Supplies
     6,098
    
    
     Cash (#155)
    
     6,098
    
    
    
    
    10/06/19
    Accounts Receivables (Bach Cellos) (#911)
     83,243
    
    
     Sales
    
     75,676
    
     GST Collected
    
     7,568
    
    
    
    
    11/06/19
    Accounts Payable (Vivaldi Violins)
     22,869
    
    
     Purchase Returns
    
     20,790
    
     GST Paid
    
     2,079
    
    
    
    
    12/06/19
    Cash
     31,864
    
    
     Sales
    
     28,967
    
     GST Collected
    
     2,897
    
    
    
    
    15/06/19
    Purchases
     1,06,029
    
    
    GST Paid
     10,603
    
    
     Accounts Payable (Strauss Synthesisers) (Inv No SS14)
    
     1,16,632
    
    
    
    
    15/06/19
    Staff Salary
     73,458
    
    
    Staff Wages
     62,370
    
    
     Cash (#157)
    
     73,458
    
     Cash (#158)
    
     62,370
    
    
    
    
    15/06/19
    Accounts Receivables (Brahms Pianos) (#912)
     1,50,478
    
    
     Sales
    
     1,36,798
    
     GST Collected
    
     13,680
    
    
    
    
    16/06/19
    Freight Out
     10,395
    
    
     Cash (#156)
    
     10,395
    
    
    
    
    16/06/19
    Accounts Payable (Vivaldi Violins)
     1,69,161
    
    
     Discount Received
    
     709
    
     Cash (#159)
    
     1,68,452
    
    
    
    
    19/06/19
    Cash
     30,263
    
    
     Sales
    
     27,512
    
     GST Collected
    
     2,751
    
    
    
    
    22/06/19
    Sales Return
     25,918
    
    
    GST Collected
     2,592
    
    
     Accounts Receivables (Brahms Pianos )
    
     28,510
    
    
    
    
    23/06/19
    Sundry Expense (Smith Foundation Charity Fund)
     12,600
    
    
     Cash (#160)
    
     12,600
    
    
    
    
    24/06/19
    Purchases
     1,03,257
    
    
    GST Paid
     10,326
    
    
     Accounts Payable (Vivaldi Violins) (Inv No VV09)
    
     1,13,583
    
    
    
    
    25/06/19
    Cash
     1,61,109
    
    
    Discount Allowed
     2,439
    
    
     Accounts Receivables (Brahms Pianos)
    
     1,63,548
    
    
    
    
    26/06/19
    Cash
     47,568
    
    
     Sales
    
     43,243
    
     GST Collected
    
     4,324
    
    
    
    
    28/06/19
    Cash
     1,35,579
    
    
     Accounts Receivables (Mozart Guitars )
    
     1,35,579
    
    
    
    
    29/06/19
    Accounts Payable (Vivaldi Violins)
     83,160
    
    
    Discount Received
    
     832
    
     Cash (#161)
    
     82,328
    
    
    
    
    29/06/19
    Dividend Expense
     1,77,100
    
    
     Dividend Payable
    
     1,77,100
    
    
    
    
    29/06/19
    Staff Wages
     62,370
    
    
     Cash (#162)
    
     62,370
    
    
    
    
    30/06/19
    Cash
     1,26,000
    
    
     Equity
    
     1,26,000
    
    
    
    
    30/06/19
    Cash
     28,358
    
    
     Sales
    
     25,780
    
     GST Collected
    
     2,578
    
    
    
    
Special Journal
    as on June 30, 2019
    
    
    
    
    
    
    Date
    Account
    Invoice No
    Sales ($)
    GST Collected
    Accounts Receivables($)
    June 1, 2019
    Accounts Receivables (Mozart Guitars) (#910)
    910
    
    7512.12
    75121.2
    June 4, 2019
    Cash
    
    21205.8
    2120.58
    
    June 10, 2019
    Accounts Receivables (Bach Cellos)
    911
    
    7567.56
    75675.6
    June 12, 2019
    Cash
    
    28967.4
    2896.74
    
    June 16, 2019
    Accounts Receivables (Brahms Pianos)
    912
    
    13679.82
    136798.2
    June 19, 2019
    Cash
    
    27512.1
    2751.21
    
    June 22, 2019
    Accounts Receivables (Brahms Pianos )
    912
    
    -2591.82
    -25918.2
    June 26, 2019
    Cash
    
    43243.2
    4324.32
    
    June 30, 2019
    Cash
    
    25779.6
    2577.96
    
    Total
     
     
    146708.1
    33326.37
    186555.6
    
    
    
    
    
    
    Purchase Journal
    as on June 30, 2019
    
    
    
    
    
    
    Date
    Account
    Invoice No
    Purchases ($)
    GST Paid
    Accounts Payables ($)
    June 8, 2019
    Accounts Payable (Vivaldi Violins)
    VV08
    
    6444.9
    64449
    June 11, 2019
    Accounts Payable (Vivaldi Violins)
    VV08
    
    -2079
    -20790
    June 14, 2019
    Accounts Payable (Strauss Synthesisers)
    SS14
    
    10602.9
    106029
    June 22, 2019
    Accounts Payable (Vivaldi Violins)
    VV09
    
    10325.7
    103257
    Total
     
     
     
    25294.5
    252945
    
    
    
    
    
    
    
    
    
    Date
    Account
    Ref
    Cash ($)
    Discount Allowed
    GST Collected
    Accounts Receivables ($)
    Sales ($)
    Other Accounts ($)
    01/06/19
    Accounts Receivables (Bach Cellos)
    
    102686
    2096
    
    104781.6
    
    
    June 4, 2019
    Sales
    
    21205.8
    
    2120.58
    
    21205.8
    
    June 8, 2019
    Accounts Receivables (Brahms Pianos)
    
    30076.2
    
    
    30076.2
    
    
    June 12, 2019
    Sales
    
    28967.4
    
    2896.74
    
    28967.4
    
    June 19, 2019
    Sales
    
    27512.1
    
    2751.21
    
    27512.1
    
    June 25, 2019
    Accounts Receivables (Brahms Pianos)
    
    1,61,108.64
    2439
    
    1,63,548.00
    
    
    June 26, 2019
    Sales
    
    43,243.20
    
    4324.32
    
    43243.2
    
    June 28, 2019
    Accounts Receivables (Mozart Guitars )
    
    1,35,578.52
    
    
    1,35,578.52
    
    
    June 30, 2019
    Equity
    
    1,26,000.00
    
    
    
    
    126000
    June 30, 2019
    Sales
    
    25,779.60
    
    2577.96
    
    25779.6
    
    Total
     
     
    7,02,157.43
     
     
    4,33,984.32
    1,46,708.10
    1,26,000.00
    
    
    
    
    
    
    
    
    
    Date
    Account
    Ref
    Cash ($)
    Discount Received
    GST Paid
    Accounts Payables ($)
    Purchases ($)
    Other Accounts($)
    June 1, 2019
    Delivery Cost
    153
    8316
    
    
    
    
    8316
    June 3, 2019
    Accounts Payable (Strauss Synthesisers)
    154
    46861
    956
    
    47817
    
    
    June 9, 2019
    Store Supplies
    155
    6098.4
    
    
    
    
    6098.4
    June 15, 2019
    Staff Salary
    157
    73458
    
    
    
    
    73458
    June 15, 2019
    Staff Wages
    158
    62370
    
    
    
    
    62370
    June 16, 2019
    Delivery Cost
    156
    10395
    
    
    
    
    10395
    June 16, 2019
    Accounts Payable (Vivaldi Violins)
    159
    1,68,452.36
    709
    
    1,69,161.30
    
    
    June 23, 2019
    Sundry Expense (Smith Foundation Charity Fund)
    160
    12600
    
    
    
    
    12600
    June 29, 2019
    Accounts Payable (Vivaldi Violins)
    161
    82328.4
    832
    
    83160
    
    
    June 29, 2019
    Staff Wages
    162
    62370
    
    
    
    
    62370
    Total
     
     
    533248.821
     
     
    300138.3
     
    235607.4
Ledger Accounts as on 30 June, 2019
    Cash at Bank
    Date
    Particulars
    Debit ($)
    Date
    Particulars
    Credit ($)
    01/06/19
    Opening Balance
    570017.7
    01/06/19
    Freight Out
    8316
    01/06/19
    Accounts Receivables (Bach Cellos)
    102686
    03/06/19
    Accounts Payable (Strauss Synthesisers)
    46861
    04/06/19
     Sales
    21206
    09/06/19
    Store Supplies
    6098.4
    08/06/19
     Accounts Receivables (Brahms Pianos)
    30076
    15/06/19
    Staff Salary
    73458
    12/06/19
     Sales
    28967
    15/06/19
    Staff Wages
    62370
    19/06/19
     Sales
    27512
    16/06/19
    Freight Out
    10395
    25/06/19
     Accounts Receivables (Brahms Pianos)
    161109
    16/06/19
    Accounts Payable (Vivaldi Violins)
    168452
    26/06/19
     Sales
    43243
    23/06/19
    Sundry Expense (Smith Foundation Charity Fund)
    12600
    28/06/19
     Accounts Receivables (Mozart Guitars )
    135579
    29/06/19
    Accounts Payable (Vivaldi Violins)
    82328
    30/06/19
     Equity
    126000
    29/06/19
    Staff Wages
    62370
    30/06/19
     Sales
    25780
     
    
    
    04/06/19
     GST Collected
    2120.58
     
    
    
    12/06/19
     GST Collected
    2896.74
     
    
    
    19/06/19
     GST Collected
    2751.21
     
    
    
    26/06/19
     GST Collected
    4324.32
     
    
    
    30/06/19
     GST Collected
    2577.96
     
    
    
     
    
     
     
    
    
    30/06/19
    Closing Balance
    753597.117
     
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Accounts Receivable Control
    Date
    Particulars
    Debit ($)
    Date
    Particulars
    Credit ($)
    01/06/19
    Opening Balance
    261954
    01/06/19
    Cash
    102685.968
    01/06/19
     Sales
    75121
    08/06/19
    Cash
    30076
    10/06/19
     Sales
    75676
    22/06/19
    Sales Return
    25918
    15/06/19
     Sales
    136798
    25/06/19
    Cash
    161109
    01/06/19
     GST Collected
    7512.12
    28/06/19
    Cash
    135579
    10/06/19
     GST Collected
    7567.56
    22/06/19
    GST Collected
    2591.82
    15/06/19
     GST Collected
    13679.82
    01/06/19
    Discount Allowed
    2095.632
     
    
    
    25/06/19
    Discount Allowed
    2439.36
     
    
     
    30/06/19
    Bad Debt
    32571
    30/06/19
    Closing Balance
    83243.16
     
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Store Supplies
    Date
    Particulars
    Debit ($)
    Date
    Particulars
    Credit ($)
    01/06/19
    Opening Balance
    151011
    30/06/19
    Store Supplies Expense
    71744
    09/06/19
     Cash (#155)
    6098.4
     
    
    
     
    
     
     
    
    
    30/06/19
    Closing Balance
    85365.4
     
    
    
    
    
    
    
    
    
    Inventory
    Date
    Particulars
    Debit ($)
    Date
    Particulars
    Credit ($)
    01/06/19
    Opening Balance
    781200
    30/06/19
    COGS
     15,65,298
    30/06/19
    Purchases
    2200590
     
    
    
     
    
     
     
    
    
    30/06/19
    Closing Balance
     14,16,492
     
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Prepaid Store Rent (paid 1 March 2019)
    Date
    Particulars
    Debit ($)
    Date
    Particulars
    Credit ($)
    01/06/19
    Opening Balance
    739620
    30/06/19
    Rent
    246537
     
    
     
     
    
    
    30/06/19
    Closing Balance
    493083
     
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Prepaid Insurance (paid 1 Nov 2018)
    Date
    Particulars
    Debit ($)
    Date
    Particulars
    Credit ($)
    01/06/19
    Opening Balance
    11340
    30/06/19
    Insurance Expense
    7560
     
    
     
     
    
    
    30/06/19
    Closing Balance
    3780
     
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Purchase Returns
    Date
    Particulars
    Debit ($)
    Date
    Particulars
    Credit ($)
    30/06/19
    Income Summary
    30933
    01/06/19
    Closing Balance
    10143
     
    
     
    11/06/19
    Accounts Payable (Vivaldi Violins)
    20790
     
    
     
    30/06/19
    Closing Balance
    0
    
    
    
    
    
    
    
    
    
    
    
    
    Advertising Expense
    Date
    Particulars
    Debit ($)
    Date
    Particulars
    Credit ($)
    01/06/19
    Opening Balance
    43848
    30/06/19
    Income Summary
    43848
     
    
     
     
    
    
     
    
     
     
    
    
    30/06/19
    Closing...
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