Task 2

Part A

Procedure

You are the accountant for ZYX Architects, a Sydney based architect. The bookkeeper has sent to you the MYOB file (ZYX.myox) covering the business transactions entered up to 30 June 2018.

After meeting the client, the following end of year adjustments need to be made:

• Prepaid Rent at year end is $1,000 – this amount is included in Rent Expense.

• Prepaid Insurance as per the trial balance is for Motor Vehicles on an annual policy which commenced on 1st March 2018.

• Depreciation for the year on Motor Vehicles is to be charged at 10% p.a. – Prime Cost (Straight Line Method).

• Depreciation for the year on Computer Equipment is to be charged at 15% p.a. Reducing Balance method.

• Accrued Expenses as at 30 June 2018 are as follows:

 Electricity $700

 Wages & salaries $1,800

• Accrued Interest Payable on the Long-Term Bank Loan amount to $930 as at 30 June 2018.

• Provide for Income tax at the rate of 30% of Net profit before tax.

Required: 

Prepare the following reports for ZYX Architects:

1. Open ZYX.myox provided by your assessor and print the following reports:

a. Trial balance as at June 2018

b. Payable Reconciliation [Summary] as at 30 June 2018

c. Receivable Reconciliation [Summary] as at 30 June 2018

2. Record the end of year adjustments.

3. Prepare a profit and loss statement for ZYX Architects for the financial year ended 30 June 2018.

4. Calculate the Income Tax provision (30%).

5. Record the adjusting journal to record the provision for income tax as calculated above.

6. Prepare the final Income statement for ZYX Architects for the year ended 30 June 2018.

7. Prepare the final Balance Sheet for ZYX Architects as at 30 June 2018.

8. Close the 2018 financial year, for your MYOB data file.

9. Prepare a Trial Balance for July 2018 to view the impact of starting the 2019 financial year.

10. Process the following reversing journal entries using the Record Journal Entry function:

a. Prepaid Rent

b. Accrued Expenses, being Electricity $700 and Wages & Salaries $1,800.

c. Accrued Interest Payable.

11. A new trial Balance for July 2018.

To be deemed competent you will need to successfully demonstrate the following:

• You must submit soft copies of the following reports:

 Profit and Loss Statement for ZYX Architects for the financial year ended 30 June 2018

 Final Income statement for ZYX Architects for the year ended 30 June 2018

 Final Balance Sheet for ZYX Architects as at 30 June 2018

 Trial Balance for July 2018 to view the impact of starting the 2019 financial year

 New trial Balance for July 2018

zyx.myox

magnetic-boats-pty.-ltd.myox