Part A: Use Reckon Software
The reports required from Reckon Software:
- Adjusted Trial Balance: 31 March to 31 March 2020 (Reports – Accountant)
- Audit Trail Report: (Reports – Accountant – Audit Trail).
The date range must be from 10/03/2020 to current date (date you are printing).
- In those cases where the Audit Trail Report is not submitted in the appropriate format (including your student number and name printed on the report) investigations into plagiarism may be commenced.
- If no Audit Trail Report is provided, the assignment will not be marked.
Please make sure that your Reckon User Name (student number and surname/family name eg 9876543Smith) are included in the Audit Trail Report generated by Reckon (they may not be handwritten on afterwards)
Background Information
The following information is presented as at 31 March 2020 for Creative Edge Professional Photography Pty Ltd. Reckon accounting software is used to maintain the financial records.
| Debit | Credit | |
| Cash at Bank | 53,010 | |
| Accounts Receivable | 31,654 | |
| Prepaid Insurance | 6,000 | |
| Photography Supplies | 3,750 | |
| Photography Equipment: Original Cost | 67,080 | |
| Accumulated Depreciation – Photography Equipment | 12,548 | |
| Accounts Payable | 6,943 | |
| Wages Payable | ||
| PAYG Withholding* | 6,750 | |
| Loan Payable – Current | 3,023 | |
| Tax Payable (GST Clearing) ** | 5,396 | |
| Loan Payable – Non Current | 18,748 | |
| Share Capital | 70,000 | |
| Retained Earnings | 15,180 | |
| Service Revenue | 62,800 | |
| Depreciation Expense – Photography Equipment | ||
| Insurance Expense | ||
| Interest Expense | 380 | |
| Photography Supplies Expense | ||
| Printing & Framing Expenses | 8,245 | |
| Rent Expense | 10,000 | |
| Studio Cleaning Expense | ||
| Telephone and Internet Expense | 650 | |
| Utilities Expense | 1,040 | |
| Wages Expense | 19,579 | |
| 201,388 | 201,388 |
PAYG withholding is tax withheld from staff wages owed to the government.
Tax Payable (GST Clearing) is the account set up for the GST owing. Reckon will also add another account named Tax Payable as you process transactions with GST. You will have 2 GST accounts when your assignment is complete: Tax Payable (GST Clearing) and Tax Payable.
Accounts Payable Details As At 31 March
| Object Gallery Pty Ltd | 2,727 |
| Lujo Hair & Makeup Pty Ltd | 2,648 |
| Focus Photo Supplies Pty Ltd | 1,568 |
| Total | 6,943 |
The owner of Creative Edge Professional Photography Pty Ltd, Maggie Lui, has provided the following transactions for you, the Graduate Accountant, to determine the accounting implications.
You need to decide if each transaction involves: a normal Reckon transaction, an adjusting entry or requires NO transaction at all for the month of March 2020.
Creative Edge Professional Photography Pty Ltd uses accrual accounting and prepares adjusting entries and financial statements on a monthly basis.
Further Information
- 31 March Received an invoice from Object Gallery Pty Ltd for $880 (including GST $80) in relation to printing and framing expenses during March.
- 31 March Prepared a quote for ImageScape Portfolios Pty Ltd for $3,300 (including GST $300) for modelling portfolio services to be completed at Sanctuary Cove in May 2020.
- 31 March Invoiced Torens Tours Pty Ltd for photography services, Invoice number AC77 for $4,202 (including GST $382).
- 31 March Received cash of $1,800 as part payment on account from Accent Fashion Pty Ltd. (Ensure the ‘Deposit To’ shows the ‘Cash at Bank’ account).
- 31 March Paid Lujo Hair & Makeup Pty Ltd $660 with cheque number 384 as part payment on account.
- 31 March The manager of the Brisbane Broncos Rugby Club advised by email that they wish to go ahead with the quote from Creative EdgeProfessional Photography Pty Ltd to take portraits for its players. This is expected to generate approximately $12,000 (including GST $1,091) of annual services. The effective date for services to start is 1 April 2020.
- 31 March Hired a new intern photographer whose annual salary is $22,300 and who will commence work on 1 April 2020.
- 31 March Received cash of $3,300 (including GST $300) from a client for wedding photography services completed. (Ensure the ‘Deposit To’ shows the ‘Cash at Bank’ account).
- 31 March Paid the monthly studio cleaning expense with cheque number 385 for $451 (including GST $41).
- 31 March Submitted a proposal for a tender to supply photography services to Brisbane International Tennis Tournament for $28,460 (including GST $2,587).
- 31 March Signed a lease for a new studio effective from 1 July 2020 with an annual rent of $32,750 (including GST $2,977), with monthly payment required from 1 July 2020.
- Wages owing as at 31 March are $3,200.
- Photography Supplies on hand at 31 March total $850.
- Depreciation on Photography Equipment is calculated using the Straight Line Method over 6 years with $0 estimated residual value. Round the amount of depreciation to the nearest whole dollar. Note that the calculation is for 1 month only(i.e. March depreciation).
- Insurance for 6 months was prepaid and recorded on 1 March (refer trial balance)
Reckon Instructions
A Reckon software file with all the accounts and their opening balances in place has been prepared for you.
The file is located on Blackboard under Assessment – Assessment Item 1: Accounting for Decision Making Assignment and is titled Creative Edge Pty Ltd.QBW.
Required:
- Before starting any work on this file, ensure you have completed all the practice exercise, watched the Reckon videos, AND read these instructions IN FULL before you start!
- Save the Creative Edge Pty Ltd.QBWfile to your home drive or a USB. Then open this file using Reckon (you will have earlier downloaded Reckon using the software link provided or be using the computer labs at QUT which have Reckon installed).
- Set up user for Audit Trail Log to enable production of an Audit Trail Report. This will enable us to identify that it is your own work. Follow the steps below:
- Click on Company in the Menu bar.Click on Set Up Users. Click on Add User. You will see the screen below:
