Case study

You are employed as the bookkeeper of I’ve Been Framed, Vista Street, HOMETOWN QLD 4000. You report directly to either Peter or Paula Paparazzo, as per the policies and procedures document.

The business buys and sells picture frames, in timber and metal. These items are inventoried. The business also buys and sells novelty photo key-rings. This item will not be inventoried - you will maintain an Excel stock card for this item.

The business has an ABN (35 933 355 333) and is registered for GST, reporting quarterly on an accrual basis.

TRANSACTIONS

Open the data file you created in Assessment 1. Enter the following transactions:

1. Complete the following

(a) Prepare the report, as per the Ive Been Framed Accounting policies and procedures, required each morning to monitor stock levels. Save as “your name - Report 1”.

(b) Why is it important that this report is printed every day?

2. The manager has authorised the purchase of the following items on 1 June.

Enter and print/save the purchase order to be faxed to Icon Photo Supplies for the following items. Save as “your name - Report 2”.

3. The items ordered on 1 June have been delivered together with the Tax Invoice below.

(a) On receipt of the goods, what procedures will the store person follow?

(b) Complete the following form as required by the policies and procedures. (Assume that all goods were received in good condition.)

(c) What discrepancies need following up? (Assume that the Tax Invoice is correct.)

(d) Is the invoice a valid Tax Invoice and are all calculations correct?

(e) If not, explain the discrepancies or errors and make the necessary adjustments to the Invoice before processing.

(f) Enter the Tax Invoice in your company file.

4. A purchase order was received from Sportspower Queensland for the following. Record this sale on 10 June 2016 – do not print an invoice

5. Sportspower Queensland returned 2 timber frames on 15 June 2016 – poorly finished.

Record the return of the frames and settle against the original invoice.

6. In Microsft Excel, create a stock card for “UR1 Acrylic photo key-rings”, showing the following:

(a) method of inventory costing being used - FIFO.

(b) your name in the cell A1.

(c) opening balance at 1 June.

(d) Previous purchases and sales, calculating the balance on hand.

(Round average cost price to 4 decimal places).

7. On 20 June 2016, 1 box of Zone plastic certificate frames A4 size, was taken from stock for use in the office (at weighted average cost in MYOB).

Record this entry in your company file.

8. A purchase order together with a cheque for $425.000 was received from Sportspower Queensland for the following. Record this sale on 25 June 2016 – do not print an invoice.

9. Update the stock card in Excel to include this sale.

Ive-Been-Frames-Policies-Procedures-Manual