(FNSACCT405A) Prepare Financial Statements

Prepare financial statements (FNSACCT405B)

These exercises provide practice in the skills necessary to prepare financial statements.

Specifically you are required to:

Compile data - Systematically code, classify and check data for accuracy and reliability, consistency and accuracy.

Prepare reports – Present appropriate charts, diagrams and supporting data, prepare reports following a clear and appropriate structure and format, which are error free and comprehensive.

Notes prepared for Quicken by Ken Boyle – Educational Consultant Page 1 Exercise 1:

Open the word and data files titled “Bill’s Gardening Service” and complete the two tasks.

If you are unsure as to how to modify the titles of the various reports refer to the data file titled “Changing titles on Statements” in the How Do I section on the disk.

Exercise 2:

Ben is the proprietor of the trading business called “Ben’s Bats” which is located, at the Warragul Sports Club, at 123 Bourke Road, Warragul, 3820 ABN92555666777

Ben purchases the bats in bulk, (costing $10 each & selling for $35 each), amongst other pieces of sporting equipment, and resells to the public. Task 1: Establish a new QuickBooks data file for Ben’s Bats.

The Statement of Position (balance sheet) as at August 1, 2008 included:

ASSETS $ EQUITIES $ Current assets Current Liabilities

Cash at bank 1200 Creditors 300 Petty Cash 200 Moe Finance Co – Debtors 500 Loan 200 Stock 300 Non-current liabilities Non-current assets Loan – Warragul Credit Delivery van 4500 Union 2000 Office furniture & 2000 equipment Owner’s Equity Refrigerator 250 Shelving 1000 Capital – Ben 7450

TOTAL ASSETS 9950 TOTAL EQUITIES 9950

The item details as at August 1 were as follows:

Number on hand: 30 Bat Purchase Price: $10.00 plus GST Bat Selling Price: $35.00 plus GST

Notes prepared for Quicken by Ken Boyle – Educational Consultant Page 2 Debtors as at August 1 included:

Nick’s Sports Shop ABN39101254441 125 Angela’s Supermarket ABN54888777666 150 Warragul Cricket Club ABN65006555444 75 Nathasha’s Playarama ABN84555666777 150

Creditors as at August 1 included:

Adam’s Special Bats ABN95117266144 150 Nathan’s Delux Bats ABN10195355426 150

Task 2: Process the following source documents for the August transactions:

CREDIT PURCHASES: Adams Special Bats ABN95117266144 4567 BOURKE RD WARRAGUL

DATE: AUGUST 1 TAX INVOICE NUMBER: 3454

SUPPLIED TO: BEN’S BATS BOURKE ROAD MOE NORTH 3820 ITEM NO DETAILS ITEM COST COST BATS Bats 150 units $10.00 $1500 00

Satisfaction Guaranteed GST 150 00

DRAWINGS OF STOCK:

* On August 2nd Ben withdrew one bat for his own use.

Notes prepared for Quicken by Ken Boyle – Educational Consultant Page 3 RECEIPTS FROM CUSTOMERS:

Mr/Mrs/Ms: Company: Nick’s Sports Shop DATE: August 3 Address: 545 Warragul Rd City & State: Warragul Post Code: 3820 Phone: (Res) Phone (Bus)

INVOICED AMOUNT:______$ 100.00 BEN’S BATS LESS DISCOUNT:______$ 0.00 ABN92555666777 THANKYOU

$100.00 Receipt NO: 1 RECEIVED FROM CUSTOMER CASH  CHEQUE  Deposited By: VISA/MC/AM EX 

Mr/Mrs/Ms: Company: Natasha’s Playarama DATE: August 4 Address: 12 Warragul Rd City & State: Moe North Post Code: 3820 Phone: (Res) Phone (Bus)

BEN’S INVOICED AMOUNT:______$ 100.00 BATS ABN92555666777 LESS DISCOUNT:______$ 0.00 THANKYOU

Notes prepared for Quicken by Ken Boyle – Educational Consultant Page 4 CASH SALES: 50 bats

Mr/Mrs/Ms: various customers Company: DATE: August 5 Address: City & State: Post Code: 3820 Phone: (Res) Phone (Bus) Racquets Bats 1750.00 BEN’S Wickets BATS Balls THANKYOU GST 175.00 ABN92555666777 TOTAL $1925.00 Cash Fees Receipt RECEIVED FROM CLIENT NO: 1 CASH  CHEQUE  Deposited By: VISA/MC/AM EX 

PAYMENTS TO SUPPLIERS:

Cheque No: 12000 DATE: August 6

Balance b/d To: Adam’s Special Bats Amount: $150.00 For: July’s Balance c/f deliveries

WRITING CHEQUES:

Balance b/d To: Susie’s Advertising Amount: $50.00 +gst For: August Balance c/f promotions

Notes prepared for Quicken by Ken Boyle – Educational Consultant Page 5 CASH SALES: 60 Bats

Mr/Mrs/Ms: various customers Company: DATE: August 8 Address: City & State: Post Code: 3820 Phone: (Res) Phone (Bus) Racquets Bats 2100.00 BEN’S Wickets BATS Balls THANKYOU GST 210.00 ABN92555666777 TOTAL

$2310.00 Cash Fees Receipt RECEIVED FROM CLIENT NO: 2 CASH  CHEQUE  Deposited By: VISA/MC/AM EX 

CREDIT SALES: BEN’S BATS

Sporting equipment to suit all purposes

BOURKE ROAD WARRAGUL 3820 TELEPHONE 943867676 ABN92555666777 SUPPLIED TO: Angela’s Supermarket 34 Bourke Rd Moe North 3820 TAX INVOICE NO: DATE: August 9 STH1 ITEM DETAILS UNITS TOTAL Bats Cricket Bats 35 $1225.00

TERMS: 10/7 NET 30 GST $122.50

Notes prepared for Quicken by Ken Boyle – Educational Consultant Page 6 PROCESSING A PETTY CASH VOUCHERS

PETTY CASH VOUCHER DEBIT: Office Expenses No: 1 Particulars: light globes + gst

Amount: $3.00 Date: Aug 10 Signed:

WRITING CHEQUES:

Balance b/d To: Shop window Cleaning Amount: $20.00 +gst For: August Balance c/f cleaning

Balance b/d To: Optus Telephone Amount: $45.00 +gst For: July’s phone Balance c/f calls PAYING SUPPLIERS:

Balance b/d To: Nathan’s Delux Bats Amount: $150.00 For: July’s Balance c/f deliveries

PETTY CASH VOUCHER DEBIT: Office Expenses No: 2 Particulars: tea, sugar, biscuits + gst

Notes prepared for Quicken by Ken Boyle – Educational Consultant Page 7 RECEIPTS FROM CUSTOMERS:

Mr/Mrs/Ms: Company: Angela’s Supermarket DATE: August 15 Address: 34 Bourke Rd City & State: Moe North Post Code: 3820 Phone: (Res) Phone (Bus)

Mr/Mrs/Ms: Company: Warragul Cricket Club DATE: August 16 Address: P.O. Box 147 City & State: Warragul Post Code: 3820 Phone: (Res) Phone (Bus)

ADDITIONAL CAPITAL CONTRIBUTIONS:

On August 17, Ben contributed a further $300 to the business.

Notes prepared for Quicken by Ken Boyle – Educational Consultant Page 8 NATHAN’S DELUX BATS

SMITH’S ROAD, WARRAGUL 3820 TELEPHONE: 94245459 ABN20205355426 TAX INVOICE NUMBER: 55

DATE: AUG 18 ORDER NO: ABN NO:

ITEM No: DESCRIPTION OF GOODS QTY RATE TAXABLE

27P CRICKET BATS 450 $4500 00

GST 10%

TERMS: NET 30 DAYS

Cash sales - 25 Bats

Mr/Mrs/Ms: various customers Company: DATE: August 19 Address: City & State: Post Code: 3820 Phone: (Res) Phone (Bus) Racquets Bats 875.00 BEN’S Wickets BATS Balls THANKYOU GST 87.50 ABN92555666777 TOTAL

Notes prepared for Quicken by Ken Boyle – Educational Consultant Page 9 Cheque No: 12005 DATE: August 20

Balance b/d To: BP Warragul

Amount: $60.00 For: Petrol +gst Balance c/f

Cash sales 50 bats Mr/Mrs/Ms: various customers Company: DATE: August 21 Address: City & State: Post Code: 3820 Phone: (Res) Phone (Bus) Racquets Bats 1750.00 BEN’S Wickets BATS Balls THANKYOU GST 175.00 ABN92555666777 TOTAL

Balance b/d To: Warragul Printing Amount: $100.00 +gst For: office Balance c/f stationery

Notes prepared for Quicken by Ken Boyle – Educational Consultant Page 10 BUYING FURTHER FIXED ASSETS ON CREDIT OFFICE SUPPLIES

ANZAC ROAD, MOE NORTH 3820 TELEPHONE: 94221119 TAX INVOICE NUMBER: 6755

DATE: AUG 23 ORDER NO: ABN NO:

DEPT SOLD BY: GH DELIVERY: SUPPLIED

ITEM No: DESCRIPTION OF GOODS QTY RATE TAXABLE

34X Cash Register 1 $1450 00

GST 10%

TERMS: NET 7 DAYS

Balance b/d To: Eastern Energy Amount: $55.00 +gst For: July’s Balance c/f electricity

Notes prepared for Quicken by Ken Boyle – Educational Consultant Page 11 FURTHER CREDIT SALES BEN’S BATS

BOURKE ROAD WARRAGUL 3820 TELEPHONE 943867676 ABN92555666777 SUPPLIED TO: Nick’s Sports Shop 545 Warragul Road Warragul 3820 TAX INVOICE NO: DATE: August 25 STH2 ITEM DETAILS UNITS TOTAL Bats Cricket Bats 50 $1750

TERMS: 10/7 NET 30 GST $175

Balance b/d To: Warragul News Amount: $80.00 +gst For: August Balance c/f advertising

CASH DRAWINGS:

Balance b/d To: Cash

Amount: $300.00 For: Drawings

Balance c/f

Notes prepared for Quicken by Ken Boyle – Educational Consultant Page 12 GST FREE PURCHASES:

PETTY CASH VOUCHER DEBIT: Office Expenses No: 3 Particulars: milk

BEN’S BATS

BOURKE ROAD WARRAGUL 3820 TELEPHONE 943867676 ABN92555666777 SUPPLIED TO: Angela’s Supermarket 34 Bourke Rd Moe North 3820 TAX INVOICE NO: DATE: August 29 STH3 ITEM DETAILS UNITS TOTAL Bats Cricket Bats 55 $1925 .00

TERMS: 10/7 NET 30 GST $192.50

Notes prepared for Quicken by Ken Boyle – Educational Consultant Page 13 BEN’S BATS

BOURKE ROAD WARRAGUL 3820 TELEPHONE 943867676 ABN92555666777 SUPPLIED TO: Warragul Cricket Club P.O. Box 147 Warragul 3820 TAX INVOICE NO: DATE: August 30 STH4 ITEM DETAILS UNITS TOTAL Bats Cricket Bats 100 $3500.00

TERMS: 10/7 NET 30 GST $350.00

Notes prepared for Quicken by Ken Boyle – Educational Consultant Page 14 Task 3: Prepare a bank reconciliation statement for August

BANK STATEMENT

Trafalgar Credit Union WARRAGUL BRANCH BANK STATEMENT BEN’S BATS Branch Account Number Number 6666 1000-0000

DATE TRANSACTION DETAIL DEBIT CREDIT BALANCE

1 AUG BALANCE FORWARD 1200.00 CR 3 AUG DEPOSIT 100.00 1300.00 CR 4 AUG DEPOSIT 100.00 1400.00 CR 5 AUG DEPOSIT 1925.00 3325.00 CR 6 AUG 12000 150.00 3175.00 CR 8 AUG 12002 22.00 3153.00 CR 9 AUG 12001 55.00 3098.00 CR 13 AUG 12003 49.50 3048.50 CR 15 AUG 12004 150.00 2898.50 CR 17 AUG DEPOSIT 300.00 3198.50 CR 22 AUG 12005 66.00 3132.50 CR 22 AUG DEPOSIT 75.00 3207.50 CR 23 AUG DEPOSIT 962.50 4170.00 CR 23 AUG 12006 110.00 4060.00 CR 25 AUG DEPOSIT 1925.00 5985.00 CR 25 AUG CHQ BOOK 2.50 5982.50 CR 25 AUG DEPOSIT 50.00 6032.50 CR 26 AUG 12007 60.50 5972.00 CR 27 AUG 12008 88.00 5884.00 CR 27 AUG 12009 300.00 5584.00 CR 29 AUG BANK FEES 5.25 5578.75 CR

31 AUG BALANCE $5578.75 CR

Notes prepared for Quicken by Ken Boyle – Educational Consultant Page 15 Task 4: Stock adjustments of merchandise:

From a physical stock count you have found that one bat is missing

Task 5: Prepare the following reports:

 A Balance Sheet  A Profit Report for August  A cash flow statement  The bank register  An A/R aging detail report  Income by customer detail report  A sales by customer detail report  An A/P aging summary report  An inventory valuation summary report  A trial balance  A transaction list by date report  A tax summary report  Income & expense graph  A sales graph

Notes prepared for Quicken by Ken Boyle – Educational Consultant Page 16