ACC/ACF 1100
Introduction to Financial Accounting
Assignment Two
In this assessment, you must use MYOB software to complete the practical component of the task. You must NOT use generative artificial intelligence (AI) to generate any materials or content in relation to the assessment task.
Due Date: Sunday 4th May 2025 at 11:55pm (week 8)
Value: 10%
Purpose: To gain experience using accounting software and demonstrate understanding of the recording process.
Submission: uploaded via Moodle
Components: A practical (recording keeping) component, and a written response.
Requirements: Please read the details carefully. There are two separate tasks involved.
Background and details:
Darcy Smith has a good friend who also started their own sole proprietorship gardening business around the same time! Meg Adams named her business ‘Mega Gardening Services’. Details about her activities relating to gardening and lawn mowing for the month of February 2025 are provided (ignore GST):
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Date
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Details
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1 Feb
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Meg contributed $2,000 cash, gardening equipment valued at $1,300 and a van valued at $12,000 to start the business.
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1 Feb
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Meg purchased a mobile phone for $1,600 on credit from Harvey Norman.
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4 Feb
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Meg paid $900 for advertising in letterboxes for the months of February, March and April.
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7 Feb
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Meg completed weeding services for clients and received $320 cash in total.
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8 Feb
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Meg purchased a supply of disposable gloves and rubbish bags for $250 cash.
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9 Feb
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Meg weeded Mrs Brown’s garden (a neighbour) for $180 on credit.
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10 Feb
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Meg withdrew $195 from the business bank account for personal use.
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11 Feb
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Meg completed pruning services for clients and collected $430 cash.
She also disposed of rubbish at the transfer station for $75.
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13 Feb
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Meg was called to urgently weed a garden at a property before an open day. She left the business (Sunrise Estate) an invoice for $600.
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14 Feb
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Meg refuelled her van for $90 cash.
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14 Feb
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Meg purchased a trailer from Trailer World for $4,990 on credit terms n/90.
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15 Feb
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Meg made a $200 payment to Harvey Norman related to the phone purchase.
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16 Feb
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The neighbour (Mrs Brown) paid Meg the amount she owed from the weeding on 9 Feb.
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20 Feb
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Meg withdrew $320 from the business bank account for personal use.
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22 Feb
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Meg completed a pruning job for $310 cash.
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23 Feb
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Garden waste disposal fees were paid for $168.
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26 Feb
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Meg received $400 from a client for weeding and pruning to be done in the coming weeks.
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27 Feb
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Meg paid Trailer World $500 towards the balance owing on the trailer.
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28 Feb
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Meg withdrew $210 from the business bank account for personal use.
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28 Feb
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Information regarding end-of-month adjustments:
o Meg estimates that she has $95 worth of gardening supplies on hand.
o The advertising has been consumed as planned.
o Of the amount that was received from a client in advance, Meg estimates that 40% of the client’s job has now been completed as pruning services.
Depreciation details (all straight-line method):
o Gardening equipment (Life = 2 years, $100 residual)
o Van (Life = 6 years, $3,000 residual)
o Phone (Life = 3 years, $700 residual)
o Trailer (Life = 8 years, residual $990)
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Required:
Part A (Practical component)
The general journal entries for Meg’s transactions are included below. You are required to record the information in MYOB software and produce financial statements. You MUST follow the instructions provided in Moodle to enter this data, as marks will be awarded based on the accuracy of the data entry recording process you follow.
You need to submit the following reports from MYOB at 28/02/2025:
Ø Journal entries
Ø Profit and Loss
Ø Balance Sheet
Part B (Written component)
Answer both parts (place your answers in a word document with the reports you generated for Part A of this assignment):
(i) Based on your experience in completing Darcy’s financial records in Assignment 1, and Meg’s financial records in this assignment, compare the opportunities to make errors during the recording process under each approach. Based on this, would you recommend that Darcy use accounting software for his business? Explain why or why not and justify with any assumptions you make. Maximum 200 words.
(ii) Reflect on the process you undertook in Part A to complete this assignment. Identify which part of the MYOB recording process you found to be the most challenging and explain why. Maximum 100 words.
CHART OF ACCOUNTS
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No.
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Account Name
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111
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Cash
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120
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Gardening Supplies
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130
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Accounts Receivable
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140
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Prepaid Advertising
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150
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Gardening Equipment
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151
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Accumulated Depreciation – Garden Equip
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160
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Van
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161
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Accumulated Depreciation – Van
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170
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Mobile Phone
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171
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Accumulated Depreciation – Mobile Phone
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180
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Trailer
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181
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Accumulated Depreciation – Trailer
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200
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Accounts Payable
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210
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Unearned Income
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300
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Capital – Meg
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310
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Drawings - Meg
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400
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Weeding Services Income
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410
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Gardening Services Income
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500
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Rubbish Disposal Expense
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510
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Fuel Expense
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520
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Gardening Supplies Expense
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530
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Advertising Expense
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540
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Depreciation Expense – Gardening Equip
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550
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Depreciation Expense – Van
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560
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Depreciation Expense – Mobile Phone
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570
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Depreciation Expense – Trailer
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