This accounting practice set is a real world simulation of all of the steps involved over a single month in the accounting cycle of a small electronics store called “Intermaweb Computer”. In this context, the word “practice” does not mean a casual attempt but rather an opportunity to demonstrate your accounting skills in your own simulated “accounting practice”. This practice set adopts a computerised approach. That means it requires you to complete the accounting cycle using the well-known accounting software package called MYOB.
Before the practice set starts, you will first be taken through a number of pages that contain some general instructions and sample exercises so you can better understand what is expected of you.
By the conclusion of this practice set you will have obtained real-world experience using MYOB to:
When you are ready to move forward, click the Continue button below. Alternatively, you can click the Bookmark button at the top of this page to save your current position, return to your home page, and continue at a later time.
Conducting yourself with the highest academic integrity is critical to your success in this practice set and you may be penalised or fail entirely if you act dishonestly. The intention of this Statement of Academic Integrity is to ensure you understand what standards of academic integrity are required of you and that you explicitly agree to act with the required degree of honesty. Your response to this statement is recorded with your attempt at this practice set.
You should complete this practice set only once prior to its submission date unless multiple attempts have been allowed on your home page or unless you are otherwise permitted to complete it multiple times by your instructor. Without specific permission, gaining multiple attempts at this practice set by any means (or even just trying to do so), is wrong. You are expected to complete this practice set by yourself on an independent basis and without copying answers from other sources or having someone else do the work for you. Plagiarism, unauthorised collusion, the submission of work that you have not completed personally, or completing the practice set more than once before its due date without your instructor’s permission, are not acceptable and are considered to be academic misconduct.
Please note that, using real-time web technology, this practice set and the transactions within it have been created as a unique practice set for you and for no other student. This practice set changes for every student and between every semester. The answers from different students or from different semesters are not applicable to your unique practice set and any attempt to use such answers will not only result in you losing points but may result in those answers being traced to their original source and academic penalties being applied against both yourself and the student who provided their answers to you.
As you complete your practice set, information about your activities such as your login times and locations, information about the computer, network and browser you used for each login session, the amount of time that you spent on every page, your exact unique questions, your responses, the points you were awarded and many other items are collected and retained. This information is not shared with any other person or party except for your educational institution and this information will be made available to your educational institution to support any academic investigations that they may wish to pursue into any doubt regarding the academic integrity of your attempt at this practice set.
Note that you must complete the following checkbox in this statement in order to continue with your practice set. If you feel that you cannot check this box, or if at any stage during your practice set you feel that your academic honesty has been compromised, please discuss the matter immediately with your instructor.
My agreement to act with academic integrity: I agree that I will ensure my practice set is completed only by me, acting with the highest academic integrity as set out in this statement, and that its final result will reflect only my own direct efforts. I also understand and agree that I am solely responsible for my own academic conduct and I accept that there may be penalties should I act dishonestly. I understand that personally identifiable information collected during my submission of this practice set may be passed to my educational institution to support and/or audit the academic integrity of my attempt. I understand that my agreement to this question is being saved with the results of my practice set.
Note that the MYOB software is different to this practice set: Please understand that the MYOB software and this practice set are two completely different (but related) items:
1.MYOB is accounting software written by MYOB (a business not associated with Perdisco in any way) that you must install on your own computer or access by some other means.
2.This practice set and its accompanying MYOB Learning Centre are websites written by Perdisco (a textbook publisher) that provide instructions to help you learn and test your understanding of the MYOB software.
I understnd and agree: I have read and understood all of the instructions on this page. If I do not understand any of these instructions I will speak to my instructor or contact [email protected] by email. I am also aware that every other web page of this practice set will contain additional instructions and I understand it is essential that I read and follow those instructions carefully before I answer and submit each page. I understand that my agreement to this question is being saved with the results of my practice set.
MYOB Learning Centre
Information from previous pages
The following two sample exercises (over the next two pages) will help you familiarise yourself with the functionality of this practice set. They are provided for demonstration purposes only and your responses will not count towards your overall score for this practice set.
In this practice set you will use MYOB to record transactions and generate a number of trial balances at different points in time. To verify that your account balances are then correct, you will be required to transcribe your results back into this practice set website. Once your answers are submitted you will receive feedback on the correctness of your MYOB company file.
Instructions: For this sample exercise we have provided an extract of a trial balance report that you are likely to obtain from MYOB. Use the extracted report to complete the identical trial balance below it by transcribing the required figures. This is a very simple sample exercise – you are just being asked to copy figures between the two reports.
Hints: If an account has a debit balance, enter that balance in the YTD Debit column and leave the relevant YTD Credit column blank. You are not required to use commas to separate thousands or to enter dollar ($) signs. Any commas or dollar signs entered into input boxes will be removed by the practice set website.
Next: Once you have checked your inputs, press the Submit answers button at the bottom of this page to have your answers graded and to obtain your feedback page. Remember, once you submit your answers you cannot go back to change what you have entered, so only submit a page once you have completed all of your responses and have double checked all of your work. If you do not want to submit this page (or any future page) immediately, press the Bookmark button at the top of this page to save your current position and complete it at a later time.
Sample exercise (2 of 2)
MYOB Learning Centre
Information from previous pages
This sample exercise demonstrates the bookmark feature of your practice set. Please take the time to read this information and to complete this sample exercise as you are requested. This will save you time and frustration later on. This exercise is provided for demonstration purposes only and your responses will not count towards your overall score for this practice set.
Bookmarking allows you to save the page you are up to and return to it at a later time. You can use this feature by pressing the bookmark button in the header at the top of every practice set page (not the “bookmarks” or “favorites” button on your browser). When you later want to return to that page, simply click the link that you clicked to originally open this practice set and you will be taken straight back to the page where you pressed the bookmark button.
Instructions: Try bookmarking now by entering an INCORRECT answer for the question below but instead of clicking the Submit answers button (at the bottom of the page), click the Bookmark button (at the top of the page). Then re-enter the practice set using the link on your home page and confirm that the answer you entered below is still there.
Have you already bookmarked an incorrect answer and returned to this page? If so, change your answer above by selecting the CORRECT response and click the Submit answers button. You will be given a feedback page and more information about the bookmark functionality.
Remember that a key outcome of this sample exercise is for you to learn how the bookmark functionality works. Before submitting your answers, please make sure you have followed all of the instructions at the top of this page.
MYOB Learning Centre
Information from previous pages
This is another feedback page and is the last page of the sample exercises. After you have reviewed the additional information about bookmarking in the feedback box below, click on the Continue button to move to the next page.
Any grading shown on this page is for demonstration purposes only and your responses do not count towards your overall score for this practice set.
Bookmarking allows you to save the page you are up to and return to it at a later time. You can use this feature by pressing the bookmark button in the header at the top of every practice set page (not the “bookmarks” or “favorites” button on your browser). When you later want to return to that page, simply click the link that you clicked to originally open this practice set and you will be taken straight back to the page where you pressed the bookmark button.
Instructins: Try bookmarking now by entering an INCORRECT answer for the question below but instead of clicking the Submit answers button (at the bottom of the page), click the Bookmark button (at the top of the page). Then re-enter the practice set using the link on your home page and confirm that the answer you entered below is still there.
Question: The accounting software package that this practice set is designed for is called:
Have you already bookmarked an incorrect answer and returned to this page? If so, change your answer above by selecting the CORRECT response and click the Submit answers button. You will be given a feedback page and more information about the bookmark functionality.
Note that the bookmarking button does not submit or grade your answers. In order to have your answers graded and be awarded any points, you must return to any page you have bookmarked and submit it. Before submitting your answers you can change any values that were stored in your bookmark and add any missing values. Bookmarking is designed to allow you to complete the practice set over multiple sessions. It also allows you to print out a question page, work on it offline, and then return to the same page later to submit your answers.
Please remember that you should only click Submit answers once you have completed all of the questions on a page.
It is also possible to use the bookmark functionality on feedback pages such as this. Doing so will return you to your home page and save the feedback page as your current position.
Assemble puzzle
Time frames are only a guide. You may take more or less time to complete each page.
MYOB Learning Centre
Information from previous pages
The puzzle map shown on the right will now be displayed on every subsequent page of your practice set. Its purpose is to guide you through your practice set by showing you what you have done and what you still have remaining to do.
How does it work? Each puzzle piece represents a section that you are about to complete. Each section contains one or more web pages. You will initially start with a single piece of the puzzle in place – being the ‘Business information’ piece. Each of the remaining sections are labelled along an arrow to demonstrate the order that you will complete those sections. As you attempt a new section, a new piece will be added to the puzzle.
Show me: To see how the puzzle will be assembled during the accounting practice set, click the Assemble puzzle link beneath the puzzle image.
Your accounting practice set is graded out of 409 points and is a large activity that will take up to 10 hours of study to complete. As such, it is unlikely that you will complete your whole practice set in one sitting.
To help you monitor your progress during the practice set, the box on the right under the puzzle image will provide ongoing information about how long it is estimated to take to complete the current page of the practice set and the maximum points allocated to that page.
The study times shown below are only approximate and may not reflect your own study experience. They are estimates of the maximum time likely to be required and are designed to give guidance as to the relative size (in terms of study hours) of each section to help you manage your study. Stronger students will complete the practice set in less time and all students are at liberty to spend longer on each section – the times are not set limits.
* At the end of your assignment, you will be asked to print a list of reports to keep a permanent record of your attempt at this practice set.
Do I have to complete the above pages within the given timeframes?
The study times shown in the table above are not time limits. They are provided only to give you a general guide as to how to manage your study while completing your practice set and the relative size (in terms of study hours) of each of its pages. The only time limit is the submission deadline set by your instructor and displayed on your home page close to the link you clicked to access this practice set. Subject to the deadline set by your instructor, please take as much or as little time as you need.
How will the practice set be graded?
Your practice set will be graded automatically. As you submit answers to the practice set website, you will receive ongoing information about the points you have scored on previous pages, the points obtained on the current page and the remaining points left to score. For more information on how points are awarded throughout the practice set, please review the STUDENT COMPANION & HELPFUL HINTS document available on your home page.
All information to complete each page will be on that page
All of the information required to complete a particular page of your practice set will be provided on that page or within the links found below the ‘Information from previous pages’ heading for that page. This means that you do not need to go back to earlier pages of your practice set to find information that you were previously given.
All the pages you have read up to this point have provided you with the instructions, guidance and examples that you will need to follow in order to successfully complete your practice set. The academic content of your practice set starts on the next web page. Click the Start practice set button below when you are ready to commence work.
Business information
Points
Prior to this page 0 0
On this page 0 0
After this page 0 409
Total 0 409
MYOB Learning Centre
Information from previous pages
ASSUME IT IS NOW 2 JANUARY 2018. It is your first day at work in your new role as Accountant with “Intermaweb Computer”, a small electronics store that operates in inner city Brisbane. The owner of Intermaweb Computer is Katharine Pauli who has decided to employ you to help her store convert from its current manual accounting system to a new computerised accounting system using MYOB.
Now that you are employed as an accountant for the store, your first task will be to set up the MYOB company file by following the detailed requests of Katharine. After completing the setup process, your next task will be to record transactions for the month of January into MYOB. You will then be required to journalise various end-of-month adjustments that are estimated by Katharine. During the month you will also be asked to prepare some reports to inform Katharine about the financial situation of Intermaweb Computer.
Katharine is experienced with the MYOB software and will check your work from time to time. She will also ask you to answer a number of questions about MYOB during your first month of work to make sure you understand the software. Otherwise you are expected to be self-sufficient. Katharine reminds you that she is very specific about the way she would like you to record information into MYOB and asks that you carefully study and then accurately apply the Accounting policies and procedures of Intermaweb Computer as set out below.
1.Business operations: Intermaweb Computer was set up as a company based in Brisbane and derives its main source of revenue from retail sales of electronic goods. Katharine Pauli (the sole shareholder) is actively involved in the running of the business. She has also appointed a salesperson (Paulina Appleton) and an accountant (you).
2.Financial year: The business adopts a financial year that ends on 30 June so closing entries are only recorded at that date.
3.Purchases: Purchases are recorded when the business receives the goods and all items purchased are received on the same day as recorded in the transaction list. The business tracks purchase orders using MYOB but does not pay deposits when placing its orders. The suppliers to the business organise and guarantee the delivery of goods and pay for the freight costs. None of the existing suppliers offer trade discounts or early payment discounts. The business is not required to pay its suppliers charges for late payment and therefore does not keep an expense account to track those types of charges.
4.Revenue recognition: The business recognises revenue when goods sold are delivered to customers. All items sold are delivered on the same day as recorded in the transaction list except for sales orders, which are delivered at a later date as agreed with the customer. At present, the business does not collect deposits for sales orders. The freight terms of sale used by the business is ‘FOB shipping point’ so customers are required to organise and pay for their own shipments. Trade discounts and sales discounts are not currently offered to customers. The business does not charge a late fee if customers are not able to pay their accounts when they fall due.
5.Goods and services tax (GST): The business is a registered entity for GST purposes and accounts for GST on an accrual basis. As a small business, Intermaweb Computer pays GST in quarterly instalments and no GST is due to be remitted during the month of January. The prices of goods and services that are subject to GST are quoted inclusive of 10% GST.
6.Cash: The business accepts cash and cheques and uses cheques to pay for the majority of its expenses. Katharine deposits cheques received on a periodic basis and it may take a number of days for the cheques to be cleared by the bank. The business holds its cheque account with BitiBank. The business uses three accounts with the account type of Bank in the MYOB accounts list, namely Cheque Account, Undeposited Funds and Electronic Clearing Account. Katharine explains that these three accounts are to be used to record cash transactions in MYOB and asks you to select the appropriate account when entering transactions into MYOB depending on whether you are recording a cheque payment, a cheque received by the business or an electronic payment as follows:
oIssue of cheque – When entering a cheque issued by the business you are to record that cheque directly into the Cheque Account (1-1110).
oReceipt of cheque – When entering a cheque received by the business you are to record that cheque into Undeposited Funds (a temporary account in MYOB) when it is first received. This is because Katharine normally deposits those cheque to the bank in a batch. The details of the cheques deposited on a given date are recorded on a bank deposit slip in MYOB. When the deposit is made, MYOB transfers the amount recorded in the Undeposited Funds account into the Cheque Account.
oElectronic payments – Katharine is currently in the process of setting up electronic payments for the business but this is not yet ready so you will not record transactions into the Electronic Clearing Account for the month of January
7.Accounts Receivable: Katharine expects the majority of accounts receivable to be collected by their due date and estimates only a small number of accounts to be uncollectible. The business uses the allowance method of accounting for bad debts to recognise the dollar amount of uncollectible receivables. To estimate the bad debts expense incurred at the end of an accounting period, Katharine applies 2% to the total credit sales for that period.
8.Inventories: The business uses the perpetual inventory system and applies the average cost method to allocate costs to inventory and cost of sales.
9.Prepayments: The business records prepayments, including office supplies, as assets. At the end of the month, adjustments are made to the relevant accounts to recognise expenses in the appropriate period.
10.Property, plant and equipment: Property, plant and equipment items are depreciated over their estimated useful life using the straight line method to calculate the monthly depreciation charge. Depreciation is allocated on a monthly basis and the monthly depreciation charge is calculated as the yearly depreciation expense divided by the number of months in a year.
11.Long term liabilities: The business obtained an interest only loan of $44,000 from ZNZ Bank on 1 November 2017 at a simple interest rate of 6% per year. Interest payments are calculated on a monthly basis and paid at the end of the month. The monthly interest payment is equal to the yearly interest on the loan divided by the number of months in a year. The principal of the loan is to be repaid on 1 November 2023.
Instructions
1.Read the accounting policies and procedures very carefully – they must be followed exactly. These policies and procedures will be available as a pop-up on every subsequent page of your practice set.
2.Go to the MYOB Learning Centre and familiarise yourself with its content.
3.You may also find the Quick reference guide a useful tool to complete your practice set and should be apprised of its content.
MYOB setup
Information from previous pages
REMEMBER YOU ARE ASSUMING IT IS NOW 2 January 2018 and is your first day at work in your new role as Accountant with Intermaweb Computer. Your first task is to convert the existing manual accounting system of Intermaweb Computer to a new computerised accounting system using MYOB. To do this, you must first download and install the MYOB software before you then set up your business in MYOB by creating a company file for it.
To ensure that the company file is created correctly, Katharine provides you with more information about the business and its preferred accounting practices. This is shown below. Katharine also provides a number of questions that you should answer while performing your setup work in MYOB.
1.Now is the time to ensure that you have MYOB AccountRight Plus v19 (Australian Edition) installed on your computer (or have access to it by other means such as a computer lab at your school). If the MYOB software is not installed on your computer, you should find the email Perdisco sent to you immediately after you purchased this practice set. That email contains instructions about how to download your copy of MYOB. Please contact Perdisco using [email protected] if you need that email resent to you. You can follow the instructions in the MYOB Learning Centre to install the software on your computer. Please note:
oCheck the MYOB system requirements: While Perdisco’s practice set (this website) can be used on any modern operating system, the MYOB software will only run on the Microsoft Windows(R) operating system. Remember that this is a limitation created by MYOB, not Perdisco. More information on the minimum system requirements for the MYOB software may be available from MYOB
oSet the correct MYOB date and currency formats: The MYOB software takes its settings for currency and date formats from your computer’s Windows operating system – these items are not set (and cannot be set) from within the MYOB software itself. To complete this practice set you will be required to enter information in Australian dollars and use the Australian date format. If you are a foreign student, it is possible that your Windows date and currency settings are not those of Australia. To maximise your chance of gaining all available points in this practice set, we suggest you ensure your Windows date and currency formats are set to those of Australia. You can learn how to do so in the Set System Currency page of the MYOB Learning Center.
2.Start MYOB and select the New Company File Assistant. Note:
oYou must enter your full name in parenthesis at the end of the company name. For example, if your full name was Chris Smith, your company name would be ‘Intermaweb Computer (Chris Smith)’.
oBefore pressing the Next button in the ‘Create your company file’ window, you should answer Katharine’s questions below about the setup process.
oIt is important that you carefully review your inputs before completing the New Company File Assistant because you will not be able to change some of your entries after the company file has been created.
3.We suggest that you print the default Accounts List [Detail] report for Intermaweb Computer and keep a copy of that report because you can use it to answer the remaining questions below and will continue to use it over the next few setup pages of this practice set. In order to answer the questions given, you will need to customise this report so that it shows information about all accounts with zero balances (you may want to refer to the MYOB reports section of the quick reference guide).
The following list sets out basic information about Intermaweb Computer’s business that is required to create the company file in MYOB using the New Company File Assistant. Each step in this list corresponds to a window in the New Company File Assistant.
a.Enter your 12 digit MYOB product serial number. Katharine asks you to leave the Serial Number field blank.
Enter information about your company. The table below shows the contact details and A.B.N. for Intermaweb Computer.
Katharine then asks you to select January as the conversion month because you will begin recording transactions for the month of January. She mentions that there should be 12 accounting periods per financial year so that each month matches a calendar month. She also asks you to review your entries because you will not be able to change them after the company file is created.
e.Create your company file. In the New Company File Assistant, before pressing the Next button in the ‘Create your company file’ window, answer the questions below about setting up your company file in MYOB.
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