Assessment conditions: This is an individual assessment task (not a group assessment task).
This assignment will require access to MYOB Essentials in order to complete Question 1. MYOB Essentials is a cloud-based package that can be accessed using a web browser (recommend Google Chrome and/or Mozilla Firefox). You will need an internet connection to use MYOB Essentials.
MYOB Essentials offers a free 30-day trial. To register you will need your name, email address, and phone number. You are not required to enter your credit card details or any payment information.
You are encouraged to complete the assignment within the free trial period. Any delay will mean that you will have to pay for continued access. The assignment has been designed in a manner that should enable you to complete within the trial period. It is recommended that you start on or after 14 April 2020 to give you sufficient time to complete the assessment by the due date and also within the free trial period.
Question 1 (80 marks)
You have been the head accountant of J&J for 3 years, and to date all accounting has been completed manually by your team. You have convinced Mr Jackson, the CEO of J&J, to switch from the existing manual accounting system to a computerised accounting system prior to the end of the 30 June 2020 financial year. This will involve using the MYOB Essentials cloud accounting system to record all required business information.
Additional information required for the completion of your assessment task has been provided to you in your Interact Site under Assessment Resources / Assessment Item 3 titled ‘MYOB Essentials Assignment Information’. This includes details for each part of the assessment; how to register for your free trial, set up instructions, your opening trial balance and relevant June transactions.
Part a. Initial set-up (5 marks)
Using the information provided, set up the MYOB Essentials cloud accounting system for J&J. As you complete your set up, you need to take a screen shot of your ‘Business Details’ and ‘GST Settings’ pages. These two screen shots should be placed in a single word or pdf file and submitted to satisfy the requirements for part a.
Errors when setting up an accounting system can impact on the chart of accounts and transactions entered into the system. Therefore, it is essential that you complete this step prior to proceeding to part b.
Part b. Chart of Accounts (25 marks)
Prepare the computerised chart of accounts for June 2020. To complete this you will need to use the May 2020 Trial Balance that was prepared using the manual accounting system, which can be located in the “MYOB Essentials Assignment Information” document in your interact site.
Once you have prepared your chart of accounts generate the Accounts List from MYOB, which is a list of accounts that you will need to submit to satisfy the requirements for part b.
Please ensure that you complete this step first before starting part c.
Part c. General Journal (45 marks)
The team has collated a list of transactions that occurred during June 2020, included in the “MYOB Essentials Assignment Information” document in your interact assessment resources.
You are required to enter the relevant June 2020 transactions in the General Journal. Once you have entered all relevant transactions, generate the General Journal report, which you will need to submit to satisfy the requirements for part c.
Part d. Reports (5 marks)
Generate and submit the following reports for J&J as at 30 June 2020:
- General Ledger
- Trial Balance
- Balance Sheet
- Profit and Loss
Question 1 is to be completed using MYOB Essentials. The reports should be generated in PDF format from MYOB Essentials. Presentation is improved if you combine all of your files and reports in a single file, if you have the means to do so. In summary, the following seven (7) files / reports are to be submitted.
- A single file with a screenshot of your ‘Business Details’ and ‘GST Settings’ pages (Question 1 a)
- Accounts List (Question 1 b)
- General Journal (Question 1 c)
- General Ledger (Question 1 d)
- Trial Balance (Question 1 d)
- Balance Sheet (Question 1 d)
- Profit and Loss (Question 1 d)
Question 2 (20 marks)
Using the Balance Sheet and Profit and Loss reports you generated in Question 1, prepare a report to analyse the financial position, financial performance, and overall financial health of your company. You are also encouraged to draw upon your knowledge from ACC100 regarding financial statement analysis and financial statement ratios.
Your report must:
- be addressed to your subject coordinator/lecturer.
- explain the purpose of the Balance Sheet report and why it is useful.
- explain the purpose of the Profit and Loss report and why it is useful.
- provide an overview of the financial position, financial performance, and general financial health of your company.
- cite relevant sources and include a reference list, using APA referencing.
Your report must be no longer than 700 (+/- 10%) words. It must include an executive summary (not included in the word limit). Please use appropriate referencing for your sources (APA style). You are encouraged to demonstrate good quality research beyond your textbook.
Question 2 is to be completed using Microsoft Word and submitted via Turnitin.
Please ensure to include a reference list. It is important that you are aware of how to reference properly and a reference list must be provided, properly formatted using APA guidelines. Please note that it is a submission requirement that you include a reference list and assignments which do not include a properly formatted reference list will lose marks.
Business Name: “J&J Manufacturing – 11701700” Click on the box that states “I’m using this business as a teaching or student resource”. This is important, when you click on this box then it will fade out the industry option.
Question 1, Part a: Initial Set-up After signing up for MYOB Essentials, click on your business name on the top right-hand side of the MYOB dashboard menu. This will open up the menu you will need to enter all of the following details and settings. If you have made an error in entering your business name when registering, you can also edit that via this menu.
Business Address: “Church Ln, Melbourne VIC 3000”
Financial year settings for J&J the financial year is ‘July to June’, resulting in an opening balance date of 1 June 2019.
Once completed, take a screen shot of your Business Details page for submission. GST Settings: for J&J are:
Yes they “are you registered for GST?”
They are accounting for GST on an Accruals basis. GST reporting occurs Monthly. Once completed, take a screen shot of your GST Settings page for submission. REPORTING FOR QUESTION 1 PART A: When you complete your set up, a screen shot of your ‘Business Details’ and ‘GST Settings’ pages must be combined into a single word or pdf file and submitted to satisfy the requirements for part a. Check your initial set up details prior to proceeding to part b as an error can affect all of your reports. Question 1, Part b: Chart of Accounts The chart of accounts should be set up via the business name in the top right hand side of the MYOB Dashboard menu. Opening Balances are entered via Accounts List / Edit Accounts. You must delete and/ or edit accounts already listed and prepare your own chart of accounts. You must correctly classify each of these accounts when preparing your chart of accounts. Do not leave excess unused accounts. Locked Accounts: You will notice that there are certain accounts that cannot be deleted. These accounts have a lock symbol next to them. These accounts can still be edited with relevant Account No. and opening balance details. You must correctly identify which of these are relevant to your task and make necessary edits. MYOB Essential locked accounts include (cannot be deleted but can be edited): • Discount received • Discounts given • Superannuation expense • Wagesandsalaries • Accounts receivable • ABN withholding credits • ABN withholdings payable • Accounts payable • GST Collected • GST Paid • PAYGwithholdingspayable • Payroll deductions • Superannuationpayable • Allocate me – Withdrawal • Allocate me – Deposit • Historical balancing • Currentyearearnings • Retained earnings NOTE #1: MYOB Essentials classifies GST Paid as a current liability (which would be a credit balance), whereas your textbook classifies it as an asset (which would have a debit balance). To work around this, you need to enter the GST Paid balance as a negative number when setting up your accounts.