You sell three main types of cycles: Tricycles, Road Bikes, and

Your Name Cycles On 1 January 2013 you, the owner of Your Name Cycles, decided to start using a computerised accounting software to process your transactions. The following transactions are suited for Xero, You sell three main types of cycles: Tricycles, Road Bikes, and Mountain Bikes. You also offer a cycle repair service. Name your company Reset the Demo Company in Xero. Change the name to Your Name Cycles Chart of Accounts Access the Chart of Accounts and archive the accounts related to the Demo Company. Import the CSV Chart of Accounts file for Your Name Cycles – CoA-cycles-student.csv For MYOB you’ll have to re-create similar ones using your own coding. Add the highlighted accounts in the trial balance and all the additional accounts in the list below. Note for Capital and Drawings edit the account names to include your name. Your Name Cycles has the following balances (tax details in brackets for accounts you need to add) on 31 December 2012. Your Name Cycles Trial Balance as at 31 December 2012 Code Account Name Debit Credit 610 Accounts Receivable* (Current Assets) 2,597 800 Accounts Payable** (Current liability) 1,820 621 Bank – Cycles (Xero Bank account) 5,200 601 Tricycle Inventory (15% GST on expenses) inventory 1,700 602 Road Bike Inventory (15% GST on expenses) inventory 9,100 603 Mountain Bike Inventory (15% GST on expenses) inventory 12,500 612 Advances to Staff*** (expenses) 5000 823 Holiday Pay Accrual (current liability) 2340 730 Shop Fittings (non-current assets) 62,000 731 Accumulated Depreciation on Shop Fittings (non-current assets) 12,600 740 Repair Equipment (15% GST on expenses) (non-current assets) 22,000 741 Accumulated Depreciation-Repair Equipment (No GST) (non-current assets) 7,650 760 Motor vehicles (non-current assets) 70,000761 Accumulated Depreciation – Motor vehicles (No GST) (noncurrent assets) 19,000 820 GST (current liability) 727 905 Loan – MNZB (Non-current liability, No GST) (non-current liability) 20,000 971 Capital – Your Name (equity) 125960 115,097 115,097 * The Accounts Receivable represents $2,597 owed by Bike Home. **The Accounts Payable represents $1,820 owed to Tui Bikes. *** Advances to Staff represent an amount advanced to James Sullivan on 23 December 2012 to provide some financial support over Christmas. He promised to pay it back in April 2013 The following additional accounts are required to be added to the imported chart of accounts file: Code Account Name Account Type Tax details 201 Tricycle Sales Revenue 15% GST on income 202 Road Bike Sales Revenue 15% GST on income 203 Mountain Bike Sales Revenue 15% GST on income 211 Cycle Repair Fees Other Income 15% GST on income 301 Tricycle COGS Direct costs No GST 302 Road Bike COGS Direct costs No GST 303 Mountain Bike COGS Direct costs No GST 434 Shop Insurance Expense 15% GST on expenses 471 Interest on Loan Expense No GST 811 Total Engineering* Current Liability No GST 431 Marketing expense Expense 15% GST on expenses 438 Delivery Income account Direct costs No GST * The supplier, in this example, for the credit purchase of plant or equipment. Enter opening balances Set the Conversion date to January 2013 Enter the opening/conversion balances from the trial balance at 31 December 2012. Complete the opening balance invoice for the accounts receivable and the opening balance bill for accounts payable.Add Inventory items Delete the Demo Company inventory items. Set up the following inventory items for Your Name Cycles: Tricycle Road Bikes Mountain Bikes Cost price excluding GST $85.00 $455.00 $625.00 Selling price excluding GST $173.00 $825.00 $1,126.00 Quantity on hand 20 20 20 Process the following transactions in the chosen accounting software. Import the bank statement and complete the bank reconciliation at the point in the transaction list indicated. Date 2013 Transaction All amounts include GST where relevant unless otherwise stated All invoices and bills have a due date of 20 February 2013 Jan 4 Paid ACP Media for marketing $362.75 using online bill payment #2710. 4 Cash sales (EFTPOS): 2 tricycles, 1 road bike and 3 mountain bikes 7 Sold 5 mountain bikes to Peak Cycles on credit ref # 8610 7 Purchased 5 tricycles on credit from Tui Bikes inv # T01 8 Purchased 6 road bikes and 9 mountain bikes on credit from Cycle Smart inv # RM01 9 Received and banked a cheque for cycle repairs $52.45 from Vanessa Cycles Ltd 11 Sold 5 road bikes to Bike Home on credit ref # 9916 12 Used business EFTPOS card to purchase great aunt’s 80th birthday present from Farmers $149.95 14 Bike Home returned 1 road bike purchased on 11 January 2013 ref # 110 14 Paid wages to staff: $4,570.25 ref # 1210 15 Returned 1 tricycle purchased on 7 January 2013 to Tui Bikes ref # 220 15 Paid K Green $2,942.57 for wages by online bill payment #3100 15 Paid monthly Xero account $50.00 by online bill payment #2001. The Xero account is included in Accountancy Fees. 16 Received cash (EFTPOS) for cycle repairs $84.70 from Tricycles Venice Ltd 16 Cash sales (EFTPOS): 5 tricycles and 4 mountain bikes 21 Paid Tui Bikes $1,820 owing on 31 December 2012, bill payment #4100 21 Charged A Blake $100.00 for cycle repairs ref # 886 22 Received an invoice from NZMTBR $378.95 for advertising in the NZ Mountain Biker magazine. Advertising is included in the Marketing account ref # 98723 Gave two mountain bikes as a bonus to Alex Gagarin for his excellent work over Christmas and New Year. 24 Sold 3 tricycles and 4 road bikes on credit to Peak Cycles. Added a freight charge of $50 excluding GST. The freight charge is recorded in the Delivery Income account ref # 1234 25 Cash sales (EFTPOS): 4 tricycles, 3 road bikes and 3 mountain bikes 25 Purchased 7 tricycles and 5 mountain bikes on credit from Tui Bikes ref # TM01 25 Import the bank statement file BS-cycle.csv and complete the bank reconciliation process Note: ï‚· Telco Direct Debit is for Phone & Website ï‚· Direct credit from Bike Home is in full settlement of the amount owing on 31 December 2012 ï‚· Max Energy Direct Debit is for Electricity ï‚· AA Plus Direct Debit is for Shop Insurance ï‚· West Rentals Direct Debit is for Shop Rent ï‚· Direct credit from Peak Cycles is in part payment of their invoice dated 7 January 2013 ï‚· Bank charges, interest on loan and loan repayment are to MNZ Bank Other items should be self-explanatory 28 You gave one road bike to your mum for her birthday. 28 A stock-take reveals one tricycle is missing. Write this off. 28 Paid wages to staff: $4,424.89 ref #1111 30 Last month shop insurance of $374.25 was posted in error to shop rent. Correct this error. 30 Last month wages $2,937.54 was posted in error to freight inwards. Correct this error. 30 Purchased new bike display stands on credit from Total Engineering $13,800. The bike display stands are recorded in Shop Fittings. 30 Traded-in old bike display stands to Total Engineering for $3,335 including GST. The bike stands originally cost $8,000 excluding GST. Straight-line depreciation at 12.5% p.a. has been recorded for four full years. At the date of disposal an additional three months depreciation is required to be recorded. Record the following: (a) Three months depreciation at 12.5% p.a. straight line (b) Transfer of the bike display stands to the Shop Fittings Disposal account. (c) Write off accumulated depreciation to the Shop Fittings Disposal account. (d) Record the trade-in of the old bike display stands using a manual journal. (e) Record the loss or gain on disposal – review the Shop Fittings Disposal Account Transactions to determine whether you need to record a loss or gain on disposal.Reports Prepare Balance Sheet, P&L and a GL detail reports in PDF format and Bank Reconciliation

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