Assessment Task 1: 25%

Manual Recording Case Study – Fast Pedallin Pty Ltd

READ THESE INSTRUCTIONS.

THEY DETAIL HOW TO MAXIMISE YOUR RESULT.

IMPORTANT: 

Part A: Manual Recording

To record transactions manually, you must use the Excel files provided via email. Handwritten work or Excel files other than the Excel files provided in Canvas are not eligible for submission. So therefore, you will not record a score for this assessment piece.

The DUE DATE for this assignment is 25th March 2022 11:59pm

Required:

• Prepare the cash at bank general ledger account (only) using the running balance format.

Important Information

1. To record transactions manually, you must use the Excel files provided in the Canvas shell. Handwritten work or Excel files other than the Excel files provided in the Canvas shell are not eligible for submission.
2. The assignment must be accompanied with an assignment cover sheet listing your full name and student identification number. Full name Kasim Aliyu Birma student id number: s3896926
3. It is the student’s responsibility to keep a backup copy of the assignment until all the assignment process is completed and marks are on Canvas.
4. Any assignments handed in late will be penalised as explained in the course guide. 

Case Study Background

Fast Pedallin Pty Ltd (ABN 12 345 678 901) operates as a company and you are the accountant for them. Fast Pedallin Pty Ltd is a wholesale business specialising in electronic equipment made in Australia. The business is in its first month of the new year which started on 1^st February 2022.

Business Background

The business was established by Maurice Moneybags from his garage and has now expended to a small warehouse and two part time employees. Maurice believes that with careful management that the business could expand to have a regular workforce within a few months and is looking to expand the operation soon.

The products that are sold are exclusively available to Fast Pedallin Pty Ltd, so the aim is to expand the reputation of the products on offer. Another aim is to have an online business specialising in cycling products within 2 years.

Employees 

Fast Pedallin Pty Ltd employs two casual assistants. Tina Bobbysox as a salesperson, and Rick Disneck works in the warehouse filling orders. Each employee works between 30 to 40 hours per week, depending on the demand and the timing of the shipments of inventory.

Payday is every second week. The following information is used to calculate their wages: 

Name	Role	Gross pay- Per hour ($)	Tax file number
Tina Bobbysox	Salesperson	33	123 456 789
Rick Disneck	Warehouse assistant	33	234 567 890

At the 31^st January the business owed the employees 12 hours to Tina and 12 hours to Rick.

Goods and Services Tax (GST)

There is no GST applied in this part of the assignment. All transactions should be recorded without of GST

Merchandise Inventory

The following is a list of closing inventory and the suppliers as at January 31^st   

Quantity on hand	Item Code	Description	Cost Price	Sale Price	Supplier
10	KMB	Kona Mountain Bike	$400	$750	Kona Cycles Pty Ltd
11	DSB	Downhill Speed Bike	$255	$525	Two Wheels Pty Ltd

The required inventory is purchased mostly on credit under the terms of payment required by the suppliers.  The business has a good relationship with each of the suppliers once the company places an order, the suppliers will deliver them free of charge the same day. Due to the good relationship the suppliers have offered discount terms, indicated below.

Suppliers account balances as at 31^st January 2022:

Name	Address	ABN	Terms of Credit	Account Balance	Date of Purchase
Kona Cycles Pty Ltd	21 Macquarie St Melbourne 3000	45 667 778 888	2/15 net 30	$4,800	19th January
Two Wheels Pty Ltd	35 Lorimer St South Melbourne 3205.	56 778 889 999	2/15 net 30	$2,550	26h January

Customer Information:

 Fast Pedallin Pty Ltd sells most of its inventory strictly on a cash basis, but the business has three credit customers.  The valued customers have been offered discount terms and these terms of payment are listed below. The outstanding account balance and the date of their purchase is also indicated in the account information

Name	Address	ABN	Terms of Credit	Date of Invoice	Account Balance
Clifton Hill Cycles Pty Ltd	450 Bourke St Melbourne 3000	60 504 030 201	1/15 net 30	20th January	$7,878
Revolution Cycles Pty Ltd	300 Smith street Clifton Hill3068	50 999 555 666	1/15 net 30	27th January	$7,425
Lawerencia Cycles Pty Ltd	296 Riversdale road Camberwell 3021	89 911 222 333	Net 30		$0

Chart of accounts

You can find your chart of accounts in the excel template in the CANVAS shell

Trial Balance

Fast Pedallin Pty Ltd
Trial Balance as at 31st January 2022
Account Number	Account name	Debit	Credit
1001	Cash at Bank	15,215.00
1010	Accounts Receivable	15,300.00
1020	Inventory	6,805.00
1030	Prepaid Rent	–
1035	Prepaid Insurance	2,400.00
1040	Stationery Supplies	745.00
1110	Computers	7,200.00
1111	Accumulated Depreciation – Office Computers		1,200.00
1120	Warehouse Equipment	18,000.00
1121	Accumulated Depreciation – Warehouse Equipment		6,600.00
2001	Accounts Payable		7,350.00
2010	Wages Payable		792.00
3001	Share Capital		35,000.00
3010	Retained Earnings		14,723.00
3050	Dividends
		65,665.00	65,665.00

Transactions: February 2022

Date	Description
1	Paid rent to Landlord Pty Ltd for the next 2(two) months – $3,000
5	Received invoice and paid Vehicle expenses from Ford Motors $185
7	Received payment from Revolution Cycles Pty Ltd for January account.
8	Received payment from Clifton Hill Cycles for January account.
9	Paid Kona Cycles Pty Ltd. for January account.
10	Paid Two Wheels Pty Ltd. for January account.
11	Pay day.  Tina was paid for 70 hours and Rick was paid for 70 hours, which includes wages owing from January. (see the TB from January)
12	Purchased more inventory 25 x KMB (Kona Cycles), 25 x DSB (Two Wheels), both on credit.
13	Returned 6 KMB to Kona Cycles Pty Ltd due to the inventory being damaged
15	Credit sales to Revolution Cycles for the following items: 22 x KMB, 26 x DSB.
16	Revolution Cycles returned 5 KMB, due to an order mistake, the goods were returned to inventory.
17	Cash sales to Lawerencia Cycles. Inventory sold:  8 x KMB and 10 x DSB
19	Paid Optus invoice for Telephone Expenses $150
25	Pay day.  Tina was paid for 70 hours and Rick was paid for 70 hours.
28	Borrowed money from the ABC bank, $14,000 at an interest rate of 6%

Adjustments at 28^th February 2022

1. Depreciation of computer equipment is $2,400 per annum.
2. Depreciation of Warehouse equipment is $4,800 per annum. 
3. Accrued wages: Tina – 18 hour and Rick 18 hours.
4. Stationery on hand as of 28^th February 2022 totalled $ 625.
5. The portion of prepaid insurance expired as of 28^th February 2022 is $300.

Required:

1. Record February month’s transactions in the general journal.
2. Record end of month adjustments in the general journal.
3. Prepare the cash at bank general ledger account (only) using the running balance format.

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