110.109

Introductory Financial Accounting

Assessment 2 Booklet

Summer School, 2024

IMPORTANT INFORMATION

This is an electronic assessment and must be completed using the accounting package Xero.

Assessment 2 contributes 15% towards your final grade and is due at 11 pm, 12 December 2024. NZST.

For this assessment, you are required to submit three (3) PDF files:

·  Three PDF files are exported from Xero, namely, the Journal Report, Profit and Loss

Statement and Balance Sheet.

· The file naming convention for the Xero exported PDFs is provided on page 7 of this

booklet.

Assessment 2 covers material from weeks 1 to 3 inclusive and mainly relates to the following learning outcomes:

1. demonstrate an understanding of the financial reporting framework for general-

purpose financial statements for commercial enterprises.

2.  Identify, measure, record and communicate economic transactions and events of

commercial enterprises’ operations using fundamental accounting concepts, including  the double-entry accounting system.

Before attempting this assessment, it is strongly recommended that you read the Assessment Information and Assessments 2 and 3 General Instructions (e.g., extensions, submissions, return of marked assessments, etc.) on the course Stream site and the assessment details on the following page thoroughly. You should also study the relevant material in the textbook and make sure you understand the concepts covered by practicing the  weekly exercises and workshop questions before or as you complete this assessment.

Assessment 2 (Xero) requires you to sign up a Xero free trial account to complete it. Details for signing up and use of Xero are provided in the “Assessment 2 Details” on the following page.

Please remember that all 110.109 assessments must be your own work. Discussion on Stream or in study groups is fine but comparing or suggesting answers on Stream or in study groups as opposed to concepts may lead to marks being deducted to the extent of receiving zero marks if answers are too similar.

ASSESSMENT 2 DETAILS

How to Get Started with This Assessment

This assessment requires you to sign up a Xero free trial account to complete. Once you have signed up for a Xero account, you can create a trial organisation. Please note that you can create as many trial organisations as you want, but each trial organisation lasts only 30 days.  This mean after you have set up an organisation that is required to complete this assessment, you will have only 30 days of access to process transactions and prepare journal reports and financial statements.

To complete this assessment, you must follow the Xero Accounting Student Manual.

Create a Xero account

· Go to the Xero sign-up page,  then  follow  the  prompts  on  the  screen  to  sign  up

(Location: Select New Zealand).

·  Go to https://status.xero.com/ to check that Xero has no current issues or downtime.

·  Xero may require a Multi-Factor Authentication (MFA) when you log in (Click here to set up  MFA).  If you don’t have a smartphone or table or can’t  download Xero Verify or Google Authenticator from the iOS App Store or Google Play Store, you can install Authy on your laptop or desktop computer.  The desktop version of Authy can be downloaded directly from Authy's website.

o Download Authy

Please note, that if you would like to set up MFA using your smartphone or tablet, you can still do so using the Authy app that can be downloaded from the iOS App Store or Google Play Store.

Xero Additional Resources

· Once logged in, you can find answers to your queries by clicking on Help   next to

your login name.

·  Pre-recorded Xero training for Massey students

o  Massey part 1: https://player.vimeo.com/video/548239369 o  Massey part 2: https://player.vimeo.com/video/548245691

·  Student Support for Xero

o Xero Central online help - Online articles, videos, and help

o Xero TV - How to video series for all tasks in Xero

Kayaks Exercise – Not Part of the Assessment

It is highly recommended that you practice the Kayaks exercise following the Xero Student Manual before you start attempting this assessment. Completing the Kayaks exercise will increase your confidence in doing this assessment even though this exercise is not part of the assessment. You need to create a trial organisation for the Kayaks exercise following the Student Manual. Please note that once you have created a trial organisation for the Kayaks exercise, it will last for 30 days only.

You can locate the Xero Student Manual (which includes the case study “Your Name Kayaks”), Kayaks Exercise Files, and Kayaks Exercise Solutions on the course Stream site within the Assessment section in the folder of Assessment 2 Xero Files.

Kayaks Exercise Files contain:

· CoA-kayaks student (.csv file).

o This is the Chart of Accounts which you will import for use in setting up the accounts for “Your Name Kayaks” company.

· BS-kayaks (.csv file).

o This is the Bank Statement file that you will import to perform. bank reconciliation for the Kayaks exercise.

Please note for this assessment, we do NOT require you to perform. bank reconciliation in Xero.

Kayaks Exercise Solutions include three files that you can use to check your answers.

Please note that the Kayaks exercise is not part of the assessment, but it will prove easier to complete Assessment 2 if you have first worked through it in Xero.

Assessment 2: Xero Accounting Question

You started a new business on 1 November 2024 and decided to use the accounting package Xero to process your company’s transactions. Your company sells bicycles and offers bicycle repair services.

Please ensure that you follow the seven (7) steps outlined below to complete this Xero assessment. Whenever needed, please consult the Xero Student Manual (referred to as the Student Manual hereafter) for further guidance.

Step 1: Set up your company:

o   Login to your Xero account. If you are taken straight to the demo company, click on

the demo company name in the upper left corner of your screen, then select “My Xero”, and then select “Add a new organisation”. If you are taken straight to My Xero, select “Add a new organisation”.

o  Follow the instructions below:

Business name: “Your Surname + Student ID + Ltd” (e.g., Smith12345678 Ltd)

Industry: “Bicycles Retail”

Country: New Zealand

Do you have employees? Choose “Yes”

Step 2: Favourite the Journal Report:

o   Choose the organisation you just created, select the Accounting drop-down menu, click

on “Reports”, then scroll down to the “Taxes and balances”, then star the “Journal Report”.

Step 3: Create a bank account:

o   Click on  “Chart  of  accounts”  from  the  Accounting  drop-down  menu,  select  Bank

accounts, then click on , then follow the instructions below:
Find account: Type “Massey”, then click on “Add without a bank feed” on
the bottom of the screen

Bank name: Massey

Account Name: Bank-your surname (e.g., Bank-Smith)

Account Type: Other

Account number: Your student ID number (e.g., 12345678)

Account Code (optional): 621

Currency: choose NZD New Zealand Dollar

Click “Add account”

Step 4: Edit the account 970 & 980 – refer to the Student Manual (p.29 – Modify the Imported  Chart of Accounts)

o   Click on Chart of accounts from the “Accounting” drop-down menu, and find account

“970 Owner A Funds Introduced” and “980 Owner A Drawings”.

o   Click on them, then you can edit the account details using the following information.

Step 5: Create the following account(s)

· Create an account using the following information. Select “Chart of accounts” from the

Accounting drop-down menu, then select

o  Refer to the Student Manual (p.30 – Add New Accounts).

Step 6: Add inventory items

o  Modify the following accounts using the following information.

o  Set up inventory (refer to the Student Manual, p.37 – Inventory Set-Up)

o  Item code: Bicycles

o  Item Name: Leave blank

o You must check the “Track inventory item” box, which brings up a drop-

down box to select the Inventory account associated with the item of  inventory.