110.109
Introductory Financial Accounting
Assignment 2 Booklet
Distance / Internal
Semester 1 - 2025
IMPORTANT INFORMATION
Assignment 2 contributes 15% towards your final grade. Assessment 2 is due before 11:00 PM on Monday 31st March (New Zealand Time).
To complete the assignment successfully, you are required to submit three (3) PDF files: (i) Prepare and export a ‘Journal Report’ for the month of January 2025. (ii) Prepare and export a ‘Profit and Loss Statement ’ for the period from 1 January 2025 to 31st January 2025; and (iii) Prepare and export a ‘Balance Sheet Statement’ as at 31st January 2025.
Assignment 2 covers material from weeks 1 to 4 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 assignment, it is strongly recommended that you read the instructions on the following pages and the “Assignment Details” thoroughly. You should also study the relevant material in the text and make sure you understand the concepts covered by practicing the weekly review and workshop questions before or as you complete this assignment.
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 assignments must be your own work. Discussion on STREAM or in study groups is fine, but comparing or suggesting answers as opposed to concepts may lead to marks being deducted to the extent of receiving zero marks if answers are too similar.
ASSIGNMENT 2 GENERAL INSTRUCTIONS
How to Get Started with This Assessment
This assessment requires you to sign up a Xero free trial account to complete [https://www.xero.com/nz]. You need a valid email ID and may need a contact phone number (to authenticate log-in ID). Once you have signed up 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 means 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 ’ and a ‘pre-recorded webinar training session ’ available in the ‘Assignment 2 Files’ folder.
1. How to Download This Assignment from STREAM
There are two folders under the “Assignment 2 Files” . One folder includes the ‘Assignment 2 Booklet (PDF format) ’ and the other folder includes two preparatory materials “Recorded training webinar (MP4 video format)” and “XERO Student Manual (PDF format)” to be downloaded to complete this assignment. Please note that the available XERO Student Manual is not the latest version (ver. 2019) and therefore you may find some a minor difference compare to the current platform of XERO.
Assignment 2 Booklet (This book)
Procedure to download Assignment 2 Booklet:
• Log on to STREAM for course 110.109.
• Go to the Assessment section, scroll down to the Assignment 2 subheading, and then click on the folder – “Assignment 2 Files,” and then click on the relevant file (PDF file) to download, i.e. “Assignment 2 Booklet” .
• Choose “Save File” and give the destination where you would like to keep the file.
Also, you can download the XERO Student Manual and Recorded Trainning Webinar following the same process.
Remember to include your name and ID while submitting Assignment 2. FOLLOW THE ‘ASSIGNMENT 2 DETAILS’ as mentioned below.
Contact the Course Coordinator if you have any problems with downloading the files from STREAM.
2. How to Complete Assignment 2
Following the Assessment – 2 Booklet for further instruction.
XERO Accounting
Relevant instructions are available within the Booklet in later section “Assignment 2 Details”
3. How to Submit Assignment 2
Assignment 2 is time-stamped when received by Stream; the deadline for on-time submission is at 11 PM on the due date [31st March, 2025].
Please note it is your responsibility to ensure that your assignment has been received. With the number of students involved, it is impossible for lecturers to know whether a missing assignment is the result of a student pulling out of the course, deciding to forgo the assignment marks, or the result of a potential gremlin in the system. Murphy’s Law applies and things can go wrong, so make certain you check with the submission dropbox after you have submitted your assignment. You should be able to see your file on the left hand side ofthe screen.
Procedure to upload your Assignment 2:
Please refer to the instructions under “Submitting Assessments to Stream Assignment boxes” on stream (by dragging down “Assessment” icon)
Contact the teaching staff if you have any queries regarding the above instructions.
The assignment submission drop boxes will remain open until the due date.
4. Assignment queries
Please feel free to keep in touch with the 110.109 team regarding this assignment, preferably through the Assignment 2 forum. That way all students benefit and often we have found that the best way of learning is through discussion with your peers as well as teaching staff.
Please note that this assignment is at individual, not group level. Discussion is fine but do not post your answers to the assignment on STREAM discussion forums, as that will lead to penalties. If you are unsure about this issue, you are welcome to use the Private Conversations.
There are a large number of students with whom the teaching staff are involved in this Course, but that does not mean that you are not each individually very important to us. We value each student and will try to provide appropriate guidance to the best ofour ability.
ASSIGNMENT 2 DETAILS
1. Start a new organization.
Name of your organization: “Your name + ID number Ltd” (e.g., Tom_Kirk 2500789 Ltd)
Industry: Choose among options “Gardening Service”
Do you have Employees: Select “Yes”
Are you registered for GST: Select “Yes”
Then Click: “Start Trial”
2. Create a bank account.
Bank name: Northpac Bank Ltd.
Account name: Bank-your name (e.g., Bank-Tom Kirk)
Account type: Other
Account number: 1092025
3. Create the following account using the ‘Chart of Accounts’ option on the XERO website.
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Code
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Account Name
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Account Type
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Tax details
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971
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Capital-your name (e.g., Capital-Tom Kirk)
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Equity
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No GST
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Similarly, update the account (Bank – Tom Kirk) with an account code ‘601’
4. Process the following events and transactions:
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Date
2025
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Transactions
All invoices and bills are due on 25 March 2025
All transactions include GST where relevant unless otherwise stated
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January 1
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Invested $25,000.00 cash in the business.
Note: Receive money entry, Account is 971 Capital-your name.
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January 3
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Appointed a new administrator, Oliver Smith with a salary of 2,000.00 forthnightly. Oliver will start working from February 15, 2025.
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January 7
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Charged the business account at Computer World Ltd. for the purchase of new office equipment $10,810.00.
Note: New Bill entry, Amounts are: Tax Inclusive, Account is 710 Office Equipment.
[Additional Note: You may need to verify the company account accepting a notification at your email address that used for XERO login]
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January 10
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Charged James Bazley for fortnightly Gardening Service provided $ 1,287.50. Note: New sales invoice entry, Amounts are: Tax Inclusive. Account is 200 Sales
[Additional Note: You may need to verify the company account accepting a notification at your email address that used for XERO login. Ignore any notification to add contact details. Click “Save & Close”]
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January 13
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Paid Gardening service assistant Mark Wills wages $625.00. Note: Spend money entry, Account is 477 Salaries.
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January 15
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Cash customers paid for Garden Services using mobile EFTPOS $1,150.00
Note: Receive money entry, Amounts are: Tax Inclusive. Account is 200 Sales
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January 19
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Cash customers paid for Garden Cleaning using mobile EFTPOS $138.00
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Note: Receive money entry, Amounts are: Tax Inclusive. Account is 260 Other Revenue.
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January 23
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Paid CAR FIX Ltd. for Motors vehicle expenses $552.00 by EFTPOS.
Note: Spend Money, Amounts are: Tax Inclusive. Account is 449 Motor Vehicle Expenses.
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January 27
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Paid for a family dinner out at BAY Restaurant with the business EFTPOS card $184.00.
Note: Account is 980 Owner A Drawings.
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January 29
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Cash customers paid for Garden cleaning using mobile EFTPOS $325.50. Note: Amounts are: Tax Inclusive. Account is 200 Sales.
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January 31
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‘Your name + ID number Ltd ’ secured a subcontract with a local real estate company Barcourt-Johnson Ltd, which is building 50 new homes. Under this agreement, ‘Your name + ID number Ltd ’ will provide gardening and landscaping services for Barcourt-Johnson Ltd. The total expected revenue from the contract is $50,000 (exclusive of GST), which will be recognized during the 2025 financial year. ‘Your name + ID number Ltd ’ anticipates to start that gardening and landscaping service from February 7, 2025.
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Requirements:
(i) Prepare the ‘Journal Report’ for the month of January 2025 and export it to PDF file. Save the file and name as “surname_ID#_JR” (The ID# being your student ID number, e.g., KIRK_2500789_JR). You can generate the ‘Journal Report’ Oder by ‘Date’. (60 marks).
(ii) Prepare and export a ‘Profit and Loss Statement’ for the period from 1 January 2025 to 31 January
2025. Export and Save the PDF file and name as “surname_ID#_PL” (The ID# being your student ID number, e.g., KIRK_2500789_PL). (20marks).
(iii) Prepare and export a ‘Balance Sheet’ at 31 January 2025. Export and Save the PDF file and name as “surname_ID#_BS” (The ID# being your student ID number, e.g., KIRK_2500789_BS). (20 marks).