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
- 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.
- 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
- 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.
- 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 1st 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 31st 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 31st
| 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 31st 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 28th February 2022
- Depreciation of computer equipment is $2,400 per annum.
- Depreciation of Warehouse equipment is $4,800 per annum.
- Accrued wages: Tina – 18 hour and Rick 18 hours.
- Stationery on hand as of 28th February 2022 totalled $ 625.
- The portion of prepaid insurance expired as of 28th February 2022 is $300.
Required:
- Record February month’s transactions in the general journal.
- Record end of month adjustments in the general journal.
- Prepare the cash at bank general ledger account (only) using the running balance format.
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