BUSN7008 Financial Statements & Reporting
Financial Statements & Reporting
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BUSN7008 Financial Statements & Reporting
MYOB Assignment
Assignment overview
MYOB is a leading accounting software in the Australasian market. Students are expected to self-learn
MYOB and complete an MYOB practice set by Week 9. A step-by-step MYOB instruction document has
been uploaded on the Wattle page. Through completing an accounting cycle with the MYOB software
in a realistic commercial scenario, students will gain technical skills and practical experience, and
develop analytical and communication skills that are sought after in the job market.
The formation of groups and time budgeting
This assignment is to be completed by students either individually or up to 3 members (no time
extension will be provided on the basis of doing it individually). Group members can be any student
enrolled in this course.
Please note that it usually takes 20+ hours to self-learn the software and complete this assignment.
Time planning and self-discipline are essential.
Internet-based MYOB
▪ Get access to internet-based MYOB via:
▪ Please register an account with MYOB using your university email address for a 180-day trial.
Let your group member know the email addresses that you used to register your MYOB
accounts, so that they can add you as a member to work on the same company file.
Submission
▪ Submit the required documents (Word/PDFs) on Wattle via Turnitin. There are 3 parts:
• 1. Cover letter – group or individual, with your signature/e-signature, which include
a declaration that no parts of the assignment were plagiarized.
• 2. Part A – the MYOB reports as required (similarity is expected to be very high for
this part).
• 3. Part B – the written report on financial ratio analysis.
▪ Each group only needs to submit ONE copy (i.e., please ask one of your groupmates to submit
your assignment on Wattle; the remaining group members do not need to submit it again).
Submitting more than once will result in a similarity score of 100%.
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▪ Assignments are to be submitted with an RSA Assignment Cover Sheet attached to the front
page (available on Wattle). All members of the group MUST sign the cover sheet for the
assignment. STUDENTS WHO DO NOT SIGN THE COVER SHEET ARE ASSUMED TO HAVE MADE
NO CONTRIBUTION TO THE ASSIGNMENT AND WILL RECEIVE NO MARKS.
▪ It is assumed that each group member contributed equally unless the group inform the
lecturer that they did not. If group members agreed that they did not contribute equally, please
email the lecturer (copying all members of the group) a Statement of Contribution which
describes why and how they are unequal, and the percentage of contribution of each group
member. The lecturer, at their discretion, may (or may not) adjust the marks for each member
accordingly.
▪ Late submissions will not be graded (i.e., zero) unless an extension is granted by the lecturer
prior to the due date.
Documentation, Referencing, and Plagiarism
• Please note that each member of the group is expected to contribute substantially. You are
required to keep brief notes of group meetings and major conversations between group
members, including the topics discussed, the duration of these meetings and conversations, and
the group members involved. These notes will not be submitted with the assignment but must
be made available to the lecturer if s/he wishes to read them.
• Where necessary, please use Harvard referencing.
• When requested, you are required to permit “lecturer role” access to the company files on
MYOB cloud to the lecturer. This allows the lecturer to collect evidence of non-plagiarism.
• Plagiarism will NOT be tolerated. The College policy is as follows:
The College regards plagiarism as any appropriation of the ideas or expressions of another
without relevant and appropriate acknowledgement. This includes unattributed appropriation
of text or content and may extend to improper referencing. Plagiarism will not be tolerated in
this course and all discovered instances would be pursued to the full extent allowable under the
rules. Where students have doubts as to how to deal with or acknowledge source materials in
the assignment, they should consult the lecturer or tutor. Please also refer to the ANU Code of
Practice for Student Academic Integrity.
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1-0000 Assets
1-1000 Current Assets
1-2000 Non-current Assets
1-2100 Cleaning Equipment
1-2110 Cleaning Equipment at Cost
1-2120 Cleaning Equipment Accumulated Depreciation
1-2200 Furniture & Fixtures
1-2210 Furniture & Fixtures at Cost
1-2220 Furniture & Fixtures Accumulated Depreciation
1-2300 Office Equipment
THE COMPANY: Sparkling Clean Solutions
Kimberly Whitman recently quit her public service job to start a cleaning company, Sparkling Clean
Solutions, in a Canberra suburb. She made this decision after discovering the shortage of good cleaners
in that affluent suburb and the market demand far outweighs the supply of quality cleaning services.
Kimberly has also decided that she will eventually introduce online booking options once the business
is established and runs smoothly. While she is getting her business going, she is not going to draw a
salary from the business.
Kimberly has employed three full-time cleaners. She is starting her business on 1 July 2023. Due to her
limited experience with accounting software, she has employed you to prepare the accounts for her
first month of operations using MYOB. You need to set up MYOB in accordance with her business
needs. The following sections detail relevant business information necessary for configuring the
accounts and related details.
1. Business Details
Company Name: Sparkling Clean Solutions
Address: Flynn, ACT 2615
Phone Numbers: 61-5762 3489
Financial Year: 1 July 2023 to 30 June 2024
2. Accounts List
MYOB’s built-in list for a cleaning service under the administrative and support services industry
classification is an appropriate starting point. Using that template, Kimberly decided on the following
chart of necessary accounts for Sparkling Clean Solutions. You will need to edit some of the account
names, delete others and create some new accounts based on the template provided by MYOB. Some
accounts may not be deleted – these will just have a zero balance. Some of the accounts you will just
rename through the Edit function.
1-1100 Cash On Hand
1-1110 Cash Account
1-1200 Accounts Receivable
1-1210 Other Receivable
1-1400 Prepaid Insurance
1-1500 Cleaning Supplies
1-1550 Office Supplies
1-1700 Prepaid Rent
Sparkling Clean Solutions – Chart of Accounts
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1-2310 Office Equipment at Cost
1-2320 Office Equipment Accumulated Depreciation
2-0000 Liabilities
2-1000 Current Liabilities
6-0000 Expenses
6-1300 Depreciation Expense
2-1100 Credit Cards
2-1200 Accounts Payables
2-1350 Payroll Accruals Payable
2-1355 Superannuation Payable
2-2000 Non-current Liabilities
2-2100 Bank Loans
2-2200 Other Non-current Liabilities
3-0000 Equity
3-1000
Owner's Equity
3-8000
3-1100 Owner Capital
3-1200 Owner Drawings
Retained Earnings
3-9000 Current Year Earnings
3-9999 Historical Balancing
4-0000 Income
4-1000
Services Revenue
6-1500 Office Supplies Expense
6-3100 Advertising Expense
6-4100 Cleaning Supplies Expense
6-4200 Delivery Expense
6-4350 Insurance Expense
6-4400 Rent Expense
6-4500 Telephone Expense
6-4600 Water Expense
6-4700 Electricity Expense
6-5100 Employment Expenses
6-5120 Superannuation
6-5130 Wages & Salaries
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3. Assets Contributed into the Business
The following table shows the formation journal entry needed to account for the assets that Kimberly has
contributed to the business.
Account Name Debit ($) Credit ($)
Cash Account 15,000
Cleaning Equipment at Cost 4,500
Furniture & Fixtures at Cost 4,000
Office Equipment at Cost 3,000
Cleaning Supplies 500
Owner Capital 27,000
4. Services Information
Sales Layout: Services and items
Income: 4-1000 Service Revenue
Payment Method: Cash
Linked Account: 1-1110 Cash Account
5. Purchases Information
Payment Method: Cash
Linked Account: 1-1110 Cash Account
Supplier Cards:
Card ID Name
SUPP01 PureCare Cleaning Supplies
SUPP02 Cleaners Supermarket
Sparkling Clean Solutions buys cleaning supplies including various detergents, cleaning agents, wipes,
sprays, and others, from PureCare Cleaning Supplies and Cleaners Supermarket.
6. Employee Information
All employees are starting on 1 July 2023 on a full-time basis. They will all be paid weekly.
Card ID First
Name
Family
Name
Annual
Salary
EMP001 Patricia Nguyen $54,000
EMP002 Susan Thompson $49,000
EMP003 Mei Tanaka $47,000
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7. Services Information
Sparkling Clean Solutions sells the following cleaning packages:
Item # Name Unit of Measure Price
CLE001 Basic Home Refresh Each $200.00
CLE002 Deluxe Deep Clean Each $350.00
CLE003 Sparkling Office Package Each $550.00
CLE004 Move-in/Move-out Clean Each $450.00
CLE005 Special Event Prep Each $150.00
8. Accounting Policies
i. Sparkling Clean Solutions uses the accrual accounting method.
ii. Sparkling Clean Solutions records depreciation at the end of each month.
Sparkling Clean Solutions prepares end-of-period adjustments on a monthly basis. You will need
to complete all the necessary adjusting entries via the Create General Journal option at the
Accounting function.
vi. Cleaning services are for cash unless otherwise stated, and all cleaning supplies purchases
from suppliers are on credit.
vii. For the purposes of this assignment, ignore company tax – this will be reported in the Income
Statement at the end of the financial year.
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9. Transactions and Events for July 2023
DATE Business Activity
July 1 The business paid rent for a small office space for the period from 1 July to 31 July,
with a total of $3,200.
1 Paid the annual property and workplace safety insurance premium (covering the
period from 1 July to the following 30 June) amounting to $6,300.
1 Kimberly purchased a new laptop for personal use at a cost of $1,800 from her
own funds.
1 Kimberly negotiated with two major suppliers, PureCare Cleaning Supplies and
Cleaners Supermarket, to secure future purchases of cleaning supplies totaling
$471.
1 Paid $400 for office supplies.
1 The business purchased and received a delivery of cleaning supplies on credit from
the following suppliers:
PureCare Cleaning Supplies $250 cleaning supplies
Cleaners Supermarket $220 cleaning supplies
2 Paid online advertising expense of $160.
6 Cleaning revenue from various clients (cash received):
4 units CLE001
2 units CLE002
1 unit CLE003
2 units CLE005
Hint: For the assignment purpose, you can create a client named ‘various clients’
to record the transaction.
8 The business paid weekly salaries to all employees.
(Payment date: 8 July; Payment period: 1 July – 7 July)
12 Paid PureCare Cleaning Supplies for cleaning supplies purchased on 1 July.
13 Cleaning revenue from various clients (cash received):
8 units CLE001
3 units CLE002
2 units CLE003
4 units CLE004
7 units CLE005
15 The business paid weekly salaries to all employees.
(Payment date: 15 July; Payment period: 8 July – 14 July)
15 Paid Cleaners Supermarket for cleaning supplies purchased on 1 July.
17 The business purchased and received a delivery of cleaning supplies on credit from
the following suppliers:
Cleaners Supermarket $340 cleaning supplies
20 Paid advertising expense for newspaper expensing of $220.
20 Cleaning services were provided to various clients on credit:
9 units CLE001
4 units CLE002
2 units CLE003
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7 units CLE004
9 units CLE005
Cash payment is expected within 30 days from the date of service.
22 The business paid weekly salaries to all employees.
(Payment date: 22 July; Payment period: 15 July – 21 July)
25 Paid Cleaners Supermarket for cleaning supplies purchased on 17 July.
27 The business purchased and received a delivery of cleaning supplies on credit from
the following suppliers:
PureCare Cleaning Supplies $420 cleaning supplies
29 The business paid weekly salaries to all employees.
(Payment date: 29 July; Payment period: 22 July – 28 July)
31 Paid the water bill of $350.
31 Paid the electricity bill of $520.
31 Paid the telephone expense of $80.
31 Physical counts indicate $90 in office supplies and $450 in cleaning supplies on
hand.
Depreciation for the month:
Cleaning Equipment $125
Furniture & Fixtures $67
Office Equipment $62
Please complete the adjusting entries for office supplies, cleaning supplies,
prepaid insurance, prepaid rent, and depreciation. Round calculated numbers to
the nearest dollar.
(For simplification purposes, there is no need to adjust salary expense for the
period from 29 July to 31 July).
Hint: Record the entries via the Create General Journal option.
END OF BUSINESS ACTIVITY LIST
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Requirements
Part A (15 marks)
Record all the necessary entries including end-of-period adjustments for July. Prepare and print the
following reports for the period ending on 31 July 2023 by clicking on the Reporting icon and then
Reports:
(i) The General Journals (choose Journal Entries, and restrict the Transaction Type to General
Journal only)
Hint: You need to choose ‘Expand all’ before exporting general journals as a PDF.
(ii) General Ledger
(iii) Trial Balance
(iv) Statement of Profit and Loss
(v) Balance Sheet
Part B (5 marks)
Kimberly would like you to:
1. Write a report commenting on profitability, liquidity, and financial position of the business
after this first month of operations in comparison with the cleaning industry averages listed in the
table below.
Ratios Formula Industry Average
Profit margin
Net Profit
Total Revenue
0.35
Rate of return on total assets
Net Profit
Total Assets
0.28
Current ratio
Current Assets
Current Liabilities
1.80
Debt-to-assets ratio
Total Liabilities
Total Assets
0.39
Debt-to-equity ratio
Total Liabilities
Total Equity
0.64
2. Suggest relevant and specific strategies that could improve the store’s operation and financing
situations. In your analysis, you may want to include suggestions about marketing practices,
advertising policies, and financing or investing strategies appropriate to the business and discuss the
benefits and limitations of ratio analysis, especially in this context.
Write the report to Kimberly, up to a maximum of 1,000 words. Word count excludes, if any, table of
content, references, and appendices. Given the word limit, no executive summary or introduction is
expected.