ACCY4202 Assessment 1 Brief 

Weighting 

35%

Learning outcomes

• Use an accounting software application to produce financial information to support a business entity’s objectives.
• Process accounts payable and receivable using software to manage financial transactions to support a business entity’s objectives.
• Generate financial information to communicate professionally with relevant stakeholders in a business setting.

Instructions

Complete and submit your assessment according to the Open Polytechnic’s Assessments webpage. This includes information on academic integrity, formatting, word limits and referencing.

Include your name, student number and the assessment number.

Submission

• Submit your assessment in two files – one Excel and one Word document (do not submit as PDFs).
• Submit your work through your iQualify course.
• Emailed assessments will not be accepted.
• You will receive an automated notice advising you of your successful submission.

By submitting your assessment you confirm that it is your own, original work.

Scenario

You are the owner of a business called [Your Name] Brand Advertising, a provider of advertising services. You started the sole trader business on 01 June 2023 and provide three main services – advertising services, product development services and general advisory services. You do not have any employees. As additional income you rent out some car parks on a casual basis.

You have decided to use Xero to record all the businesses transactions, run reports and prepare GST returns. You are registered for GST on a monthly basis from 01 June 2023.

Task 1: Set up activity

a. Add a new organisation in My Xero:

i. Use the following organisational details:

• The name of your business is [Your Name] Brand Advertising (replace [Your Name] with your own first and last name; for example, Kiri Davies Brand Advertising.
• Your industry is Advertising Services.
• Your country is New Zealand.
• There are no employees.
• Tick Yes, calculate GST on transactions for me.

ii. Select Start Trial.

iii. From the settings menu, choose users and set yourself up as an advisor.

iv. From the accounting drop-down menu, choose conversion balances. Then go into the conversion date tab and enter June 2023 as the conversion date.

b. Set up your chart of accounts:

i. Delete existing chart of accounts.

ii. Import the [Your Name] Advertising Brand Chart of Accounts Assessment 1 CSV file.

iii. Change the business bank account from a current asset to bank, with an account number 111-111-111.

iv. Make the changes and additions in the chart of accounts from Table 1.1 below.

Table 1.1 New and amended accounts

v. Amend the Bank Account to include the following details:

• • Your Bank is NZ Bank (add without a bank feed).
  • The name of the account is Bank – [Your Name] Brand Advertising.
  • The account code is 90.
  • Currency is NZD.

c. Set up products and services

Enter the following products for untracked items you sell as shown in Table 1.2 below

Table 1.2 Products and services – untracked items you sell

d. Set up GST

From the accounting drop-down menu, choose GST return. Add the following details:

• GST number: 111-111-111.
• Accounting basis: Payments basis.
• Frequency: Monthly.
• Tax form: GST only (GST101).
• Next period due: 1 June to 30 June 2023.

(Task 1 total: 5 marks)

Task 2: Transactions

a. Enter accounts receivable transactions from Table 2.1 below in [Your Name] Brand Advertising, noting:

i. Create new contacts as needed (you do not need to enter the billing addresses or other information).

ii. All selling prices are as per Table 1.2.

iii. You do not need to enter the receipt for the invoices to cash sales (this will be processed via the bank reconciliation later).

iv. Approve all transactions.

Table 2.1: Accounts receivable invoice transactions for June 2023

b. Enter accounts payable transactions from Table 2.2 below in [Your Name] Brand Advertising, noting:

All bills have a due date of 20th July 2023 (although Smart Agency was paid in June 2023). ii. Create new contacts as needed (you do not need to enter the billing addresses or other information). iii. Change the bill so it shows ‘Amounts are Tax Inclusive’. iv. Approve all transactions.

Table 2.2: Accounts payable bill transactions for June 2023

c. Import and reconcile the bank statement

i. Using the Bank – [Your Name] Brand Advertising account, import a statement using the Bank Statement Assessment 1 CSV file as the statement.

ii. Reconcile all the transactions in the Business Bank Account for the month of June 2023:

• Add new contacts as required.
• Match receipts (deposits) to invoices as required.
• Match payments to bills as required.
• Enter cash transactions as required.

(Task 2 total: 50 marks)

Task 3: GST Return

a. Prepare the 1 June to 30 June 2023 GST return. Remember to check the GST transaction report.

(Task 3 total: 10 marks)

Task 4: Reports 

a. Prepare the following reports:

i. Chart of accounts.

ii. Trial balance at 30 June 2023.

iii. Profit and loss for month of June 2023 (accrual basis, no decimals).

iv. Balance sheet as at 30 June 2023 (accrual basis, no comparatives, no decimals).

v. GST return report, including GST transaction report, for the 30 June 2023 GST period.

vi. Bank reconciliation summary report 1 June to 30 June 2023.

vii. Aged receivables summary at 30 June 2023.

viii. Aged payables summary at 30 June 2023.

ix. General ledger detail report (grouped by account code and name) for the period 1 June to 30 June 2023.

Export your reports as Excel files, then combine the files into one Excel file with each report on a separate tab. 

Name the file ‘[Your Name] [Student Number] Assessment 1 Reports’, for submission.

(Task 4 total: 10 marks)

Task 5: Memo

a. Your bank, NZ Bank, has requested your financial statements for June 2023. Prepare a memo to the bank explaining your first month’s financial statements. In a Word document, discuss and include a Xero report screenshot of each of the following:

i. The details of the sales for the month, including the total amount invoiced for each of the three services. This should total the sales figure in the profit and loss.

ii. The details of the accounting expenses for the month, including the details of the suppliers and the amounts paid. This should total to the accounting fees in the profit and loss.

iii. The details of the marketing expenses for the month, including the details of the suppliers and the amounts paid. This should total the marketing expense in the profit and loss.

iv. The details of the rent expenses for the month, including the details of the suppliers and the amounts paid. This should total the rent expense in the profit and loss.

v. An analysis of accounts receivable, including details of customers owing money as at 30 June 2023, and details of any overdue amounts, if applicable.

vi. An analysis of accounts payable, including details of suppliers you owe money as at 30 June 2023 and details of when the payments are due.

viii. Details of the GST due for June 2023 and the due date.

b. Format the memo appropriately.

(Word guidance: 200 – 300 words)
(Task 5 total: 25 marks)

Name the Word document ‘[Your Name] [Student Number] Assessment 1 Memo’ for submission.