Xero Practice Set Company: Whadjuk Dreaming Overview You are working for the temporary accounting employment agency known as Programmed. This month you have been asked to work at Whadjuk Dreaming, a medium-sized coffee supplies business that operates in Fremantle and is owned by Bindi Tjandamurra. Bindi requires your expertise to convert her existing manual accounting system over to a cloud-based computerised accounting system using the software provider Xero. Bindi also requires you to complete the first month’s transactions in Xero. Your task he

Xero Practice Set Company: Whadjuk Dreaming
Overview
You are working for the temporary accounting employment agency known as Programmed. This month you have been asked to work at Whadjuk Dreaming, a medium-sized coffee supplies business that operates in Fremantle and is owned by Bindi Tjandamurra. Bindi requires your expertise to convert her existing manual accounting system over to a cloud-based computerised accounting system using the software provider Xero. Bindi also requires you to complete the first month’s transactions in Xero.
Your task here is to set up Xero and to complete the July 2020 accounting cycle for Whadjuk Dreaming. To assist you in this task, Bindi asks you to read the businesses accounting policies and procedures and to make use of the supporting materials provided by the business’ accounting system, Xero Limited available at Xero Central. The accounting system information provided by Bindi is based on her existing manual accounting system. You should review carefully the information provided and modify and/or add to as appropriate to bring her accounting system over to Xero.
You are required to follow these policies and procedures when completing the accounts for Whadjuk Dreaming in Xero.
Key Points to Note
• Whadjuk Dreaming financial year ends on June 30. The current financial year ends on June 30, 2021.
• GST is exclusive unless advised otherwise. Ensure you set this correctly in Xero where applicable.
• The supplied system information is based on the manual system and should be reviewed carefully for errors and/or missing details. This does not apply to the transactions which are as given.
Accounting Policies
Business operations
Whadjuk Dreaming is set up as a private non-listed company based in Fremantle with Bindi Tjandamurra as the sole shareholder. The company derives its main source of revenue from sales of coffee supplies.
To assist in selling the products Whadjuk Dreaming rents warehouse space in Fremantle. Note that the business is required to pay for the rent of this space in advance.
The electricity and water expenses incurred during the month are related to the running of the warehouse. Additional expenses include an insurance policy to protect the business against inventory items being damaged or lost during deliveries.
All part-time employees in the business are sales staff who receive their wages every two weeks. Bindi is the only full-time employee and her role is to handle all administrative tasks. Bindi’s salary is paid at the end of each month.
Accounting cycle
The business adopts a monthly accounting cycle.
Purchases
Purchases are recorded when the business receives the goods. All items purchased are received on the same day as recorded in the transaction list, except for purchase orders which are received later. Note that the business uses the gross method of recording purchases and receives trade discounts and early payment discounts from some suppliers.
All purchases are tax exclusive, that is GST is added to the price paid unless advised otherwise.
Purchase returns
To allow Bindi to separately track and analyse the value of goods returned to suppliers, all purchase returns are recorded in the Purchase Returns and Allowances account rather than directly in the Purchases account.
Revenue recognition
The business recognises revenue when goods sold and 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. Note that the business uses the gross method of recording sales and sometimes grants trade discounts to customers.
Experience has shown that offering settlement discounts did not increase the likelihood of accounts receivable being paid promptly. Therefore, settlement discounts are not normally offered to credit customers except in exceptional circumstances. Payment is expected within 14 days of the invoice date.
All sales are tax exclusive, that is GST is added to the price charged to the customer unless advised otherwise.
Sales returns
So that the business can easily track the level of sales returns in relation to overall sales, all sales returns are recorded using a contra revenue account (Sales Returns and Allowances) rather than being recorded directly in the Sales Revenue account.
Cash
The business accepts cash and cheques and uses cheques to pay for most of its expenses. On the day cheques are received, Bindi deposits them at the bank. It may take several days for the cheques to be cleared by the bank. The business holds its cheque account with Bank Australia.
Short-term investments
The business holds a six-month term deposit account with Bank Australia. Interest is calculated monthly and received at the end of the deposit term. Note that when the deposit matures, Bindi usually rolls over the principal. The term deposit account was last rolled over on June 30, 2020.
Inventories
The business uses the periodic inventory system and records all purchases of inventory in the Purchases account, rather than recording them directly in an inventory account.
It does, however, keep an inventory record and it marks up its inventory prices by 100%.
Prepayments
The business has a policy of recording prepayments, including office supplies, as assets. At the end of the month, adjustments are made to the relevant accounts to recognise the expense incurred during the accounting period.
Property, plant, vehicles and equipment (Fixed assets)
Property, plant, vehicles and equipment items are depreciated over their estimated useful life using the straight-line method to calculate the depreciation charge.
Long-term liabilities
The business obtained an interest-only loan from Bank Australia Bank on July 1, 2020. The first interest payment is due at the end of September 2020 and the principal on the loan is due at the beginning of July four years later.
Accounting Procedures
Whadjuk Dreaming has previously utilised a manual accounting system, however from July 1, 2020 in the current financial year it is moving over to using the cloud-based accounting software program, Xero. You are required to set up Xero for the business and record the first month’s transactions in Xero, i.e., July 2020.
You should set up Xero following the sequence as given here.
Settings
Organisation details
Display name: Whadjuk Dreaming your student number family name Ltd,
e.g., Whadjuk Dreaming 0123456 Ong Ltd
Legal/Trading Name: As per the display name – information as above
What is your line of business: Cafe & Coffee Roastery
Australian Business Number: Leave blank
Organisation description: A private non-listed company with Bindi Tjandamurra as the sole shareholder. The company derives its main source of revenue from the sales of coffee supplies.
Contact Details – Postal Address Enter your Australian address as showing in SIMO.
Attention field should be your name.
Contact Details – Physical Address Enter your Australian address as showing in SIMO.
Attention field should be your name.
Telephone Should be your phone number as shown in SIMO
Email Your ECU Student email address
Website Leave blank
All other settings should be left at their defaults.
Bank Account
Bank: Bank Australia
Account Name: Cash at Bank
Account Type: Everyday (day-to-day)
BSB: 313140
Account No. Your student number
In the screen headed “Let your bank send transactions to Xero” click the button, “I got a form”, on the next screen click “I’ll do it later” when asked to upload your form.
Your bank account should now be set up and you should be ready to enter your conversion balances as given below.
Chart of Accounts
You are required to set up the following Chart of Accounts in Xero. Note that this is your initial Chart of Accounts based on the existing manual accounting system. You may need to add or amend this Chart of Accounts to reflect the transition to a computerised accounting system.
Where a matching existing account exists in Xero, you must use that account, but modify the account name and/or code to reflect Whadjuk Dreaming’s chart of accounts. This includes locked system accounts. All other accounts provided by Xero but not required should be archived.
Account Type Code Name
Bank 100 Cash at Bank – Bank Australia
(This is already set up – instructions on bank account on page 4. Just add account number 100 to ‘Code’) BAS Excluded
Current Asset 101 Uncleared Deposits BAS Excluded
Current Asset 102 Term deposit account no. 1 BAS Excluded
Current Asset 110 ARC – Accounts Receivable Control BAS Excluded
Current Asset 112 Interest Receivable BAS Excluded
Current Asset 120 Inventory BAS Excluded
Current Asset 130 Office Supplies BAS Excluded
Current Asset 140 Prepaid Rent BAS Excluded
Current Asset 141 Prepaid Advertising BAS Excluded
Current Asset 142 Prepaid Insurance BAS Excluded
Fixed Assets 150 Cash Registers GST on Expenses
Fixed Assets 151 Accum. Depn: Cash Registers BAS Excluded
Fixed Assets 160 Store Fixtures GST on Expenses
Fixed Assets 161 Accum. Depn: Store Fixtures BAS Excluded
Fixed Assets 170 Delivery Bicycles GST on Expense
Fixed Assets 171 Accum. Depn: Delivery Bicycles BAS Excluded
Current Liability 201 Unpaid Expense Claims BAS Excluded
Current Liability 202 GST BAS Excluded
Current Liability 203 Uncleared Cheques BAS Excluded
Current Liability 210 APC – Accounts Payable Control BAS Excluded
Current Liability 220 Wages and Salaries Payable BAS Excluded
Current Liability 221 Electricity Payable BAS Excluded
Current Liability 222 Water Payable BAS Excluded
Current Liability 225 Interest Payable BAS Excluded
Current Liability 246 Tracking Transfers BAS Excluded
Current Liability 247 Rounding BAS Excluded
Current Liability 248 Suspense BAS Excluded
Current Liability 249 Historical Adjustment BAS Excluded
Non-current Liabilities 250 Loan – Interest Only No. 01 BAS Excluded
Equity 300 Share Capital BAS Excluded
Equity 301 Retained Earnings BAS Excluded
Revenue 400 Sales GST on Income
Revenue 401 Sales Returns and Allowances GST on Income
Revenue 402 Discount Received GST on Income
Revenue 403 Interest Income GST Free Income
Expense 500 Purchases GST on Expense
Expense 501 Purchase Returns and Allowances GST on Expense
Expense 511 Advertising Expense GST on Expense
Expense 516 Wages and Salary Expense BAS Excluded
Expense 540 Rent Expense GST on Expense
Expense 541 Electricity Expense GST on Expense
Expense 542 Water Expense GST on Expense
Expense 543 Insurance Expense GST on Expense
Expense 544 Office Supplies Expense GST on Expense
Expense 560 Depreciation Expense GST on Expenses
Expense 571 Interest Expense GST Free Expense
Expense 572 Bank Fees GST Free Expense
Expense 573 Discount Allowed GST on Expense
Expense 574 Dishonoured Payments GST Free Expense
Additional Information
• Enter conversion balances by ‘Accounting’ ‘Advanced’ ‘Conversion balances’.
• Conversion date – 30/06/20
• Note that accumulated depreciation has a credit balance, so a negative sign will be required.
Conversion Balances
Conversion date must be set to July of the current financial year.
Your company name
Closing Trial Balance
as at June 30, 2020
Account Number Account Name Debit ($) Credit ($)
100 Bank Australia $160,910
101 Uncleared Deposits 24,475
102 Term deposit account no. 1 100,000
110 ARC – Accounts Receivable Control 62,850
112 Interest Receivable 0
120 Inventory 366,610
130 Office Supplies 35,415
140 Prepaid Rent 30,000
141 Prepaid Advertising 45,000
142 Prepaid Insurance 14,750
150 Cash Registers 45,000
151 Accum Depn: Cash Registers $4,500
160 Store Fixtures 215,000
161 Accum Depn: Store Fixtures 10,750
170 Delivery Bicycles 0
171 Accum Depn: Delivery Bicycles 0
201 Unpaid Expense Claims 0
202 GST 0
203 Uncleared Cheques 38,000
210 APC – Accounts Payable Control 81,824.37
220 Wages Payable 0
221 Electricity Payable 0
222 Water Payable 0
225 Interest Payable 0
247 Rounding 0
248 Suspense 0
250 Loan – Interest Only No. 01 0
300 Share Capital 410,000
301 Retained Earnings 554,935.63
Total $1,100,010 $1,100,010
* See the July 31 instruction related to the bank reconciliation for details on uncleared deposits and uncleared cheques. You need to account for both to have your conversion balances balancing.
Customers
Adding pre-conversion accounts receivable balances
To: Enter the customer’s name
Date: June 30
Due Date: July 31
Invoice #: Default
Reference: Leave blank
Amounts are Tax Inclusive
Item: Leave blank
Description: Pre-conversion sale
Quantity: 1
Unit price: Amount owed
Account: 400 – Sales
Tax Rate: GST on Income
Account Number Contact Name Amount Owed
110-1 Fremantle Coffee $14,220
110-2 Mod Coffee 19,405
110-3 ChillZone 10,720
110-4 Freewheelin Coffee 18,505
110-5 Revamp Coffee Carts 0
110-6 Sarah’s Hot Spot 0
110-7 Fothergill Bed and Breakfast 0
Total $62,850
Enter the contact name and account number in Xero. Leave all other fields at their default values.
Suppliers
Adding pre-conversion accounts payable balances
Add bill
From: Enter the supplier’s name
Date: June 30
Due date: July 31
Reference: Leave blank
Total: Amount owed
Amounts are: Tax Inclusive
Item: Leave blank
Description: Pre-conversion purchases
Quantity: 1
Unit Price: Amount owed
Account: 500 – Purchases
Tax Rate: GST on Expenses
Account Number Contact Name Amount Owed Terms
210-1 Crop Del Monte $17,160 Net 30
210-2 FTA Speciality Coffee 18,716 1/15, n/30
210-3 Olam Specialty Coffee 23,340 2/10, n/30
210-4 Kolibri Kofe
6,888.37 2.5/15, n/30
210-5 Moledina Commodities 15,720 Net 30
210-6 Honduras Gourmet Coffee 0 2/12, n/30
Total $81,824.37
Enter the contact name and account number in Xero. Leave all other fields at their default values.
Fixed Assets Register
For this activity you have two existing fixed assets which must be registered in the assets register plus one new asset to be registered on purchase date. The following information is all that is needed initially. As Whadjuk Dreaming is not accounting for tax in Xero, in the asset type section set the depreciation method under tax value as “no depreciation.”
Start Date: July 1, 2020
Asset Name: Same as asset type, e.g., vehicles
Asset Number: Default value
Purchase Date: See table below
Purchase Price: See table below
Warranty expire: Leave blank
Serial Number: Leave blank
Asset type: See table below
Description: Leave blank
Depreciation method: Straight-line
Depreciation start date: The purchase date
Residual value: See table below
Effective life: See table below
Existing Fixed Assets
Asset Name / Asset Type Purchase Date Purchase Price Residual Value Effective Life
Cash Registers Jan 1, 2019 $45,000 $5,000 Five years
Store Fixtures Jan 1, 2019 $215,000 $0.00 Ten years
Products and Services (Select ‘
• Enter the following list of products by ‘Business’ ‘Products and Services’ ‘New item’.
• Select both ‘I purchase this item’ and ‘I sell this item’ and enter the details of both purchase price and selling price accordingly.
• Do not tick ‘I track this item’.
Item Number Initial Unit Cost Initial Sell Price
4301 Medium Roast Arabica Coffee $7.18 $14.35
4302 Dark Horse Blend $26.00 $52.00
4303 Crompton Road Blend $26.00 $52.00
4304 Risaralda Decaf $27.50 $55.00
4305 Leonid Ramirez $31.00 $62.00
4306 Ardi $26.00 $52.00
4307 Tightrope Blend $26.00 $52.00
4308 Cleanskin Blend $21.00 $42.00
4309 Organic Blend $29.00 $58.00
4310 Panama Geisha $134.50 $269.00
4311 Colombian Reserve $68.00 $136.00
4312 Rwandan Single Orgin $29.00 $58.00
4313 Honduras Blue $18.20 $36.40
5001 Chocolate Sprinkles $30.25 $60.50
5002 CSR Gourmet Sugar Cubes $25.90 $51.80
5003 Bannister Downs Gourmet Cream (24) $83.88 $167.76
5004 Organic Cream Liquer $27.50 $55.00
5005 Premium Drinking Chocolate $9.00 $18.00
5006 Chai Latte Powder 1 kg $11.00 $22.00
5007 Raw Sugar Sticks [Box 2000] $15.00 $30.00
5008 White Sugar Sticks [Box 2000] $18.00 $36.00
6001 8oz Takeaway Lids (Box 1000) $51.70 $103.40
6002 12oz Takeaway Lids (Box 1000) $54.45 $108.90
6003 Whadjuk Dreaming KeepCup [Box 12] $72.60 $145.20
6004 Whadjuk Dreaming KeepCup Brew [Box 12] $130.68 $261.36
7001 Le Marzocco Linea Mini Coffee Machine $2,995.00 $5,990.00
7002 Isomac Tea Coffee Machine $1,089.00 $2,178.00
7003 Baratza Forte Grinder $544.50 $1,089.00
7004 Mazzer Mini Grinder $412.50 $825.00
7005 Baratza Sette 270WI Grinder $335.50 $671.00
8001 Acaia Lunar Scale $165.83 $331.65
8002 Corner Tamper Mat $10.45 $20.90
8003 Knock Tube Bags $14.30 $28.60
8004 Pullman Chisel $92.40 $184.80
8005 Knock Tube $37.95 $75.90
8006 Chocolate Shaker $6.60 $13.20
8007 Aillio Knockbox – Black $33.00 $66.00
8008 Thermometer $7.70 $15.40
8009 Pallo Grindmaster Brush $13.20 $26.40
8010 Pallo Coffeetool $11.00 $22.00
8011 Synesso Naked Portafilter $55.00 $110.00
8012 Blind Portafilter Basket $3.85 $7.70
8013 Milk Jug Rinser $212.85 $425.70
9001 Expresso Machine Descaler $9.35 $18.70
9002 Cafetto Commercial Expresso Clean $21.45 $42.90
Bank Reconciliation Statement
Whadjuk Dreaming
Bank Reconciliation Statement
as at June 30, 2020
Balance as per bank statement $160,910
Add:
Deposit in transit from Freewheelin Coffee $18,425
Deposit in transit from Fremantle Coffee 6,050 24,475
185,385
Less:
Unpresented cheque 909 34,500
Unpresented cheque 910 3,500 38,000
Adjusted bank balance 147,385
Balance as per ledger account 147,385
Bank Statement as at July 31
Account No.
Page number 1
Whadjuk Dreaming
7/24 Mews Road
Fremantle WA 6160
Date Particulars Debit Credit Balance
160,910.00 cr
July 1 909 34,500.00 126,410.00 cr
July 2 910 3,500.00 122,910.00 cr
July 4 Loan 275,000.00 397,910.00 cr
July 4 Deposit – Freewheelin Coffee 18,425.00 416,335.00 cr
July 4 911 38,919.38 377,415.62 cr
July 5 Deposit – Fremantle Coffee 6,050.00 383,465.62 cr
July 5 912 18,716.00 364,749.62 cr
July 6 913 6,888.37 357,861.25 cr
July 6 Deposit – Cash Sales 32,806.88 390,668.13cr
July 9 914 1,107.22 389,560.91 cr
July 10 Deposit – Fremantle Coffee 14,220.00 403,780.91 cr
July 11 Deposit – Cash Sales 47,106.16 450,887.07 cr
July 14 915 15,720.00 435,167.07 cr
July 18 Deposit – Cash Sales 61,801.52 496,968.59 cr
July 20 916 25,515.00 471,453.59 cr
July 21 Deposit – ChillZone 43,222.63 514,676.22 cr
July 26 Deposit – Sarah’s Hot Spot 1,500.00 516,176.22 cr
July 26 Cheque returned – Sarah’s Hot Spot 1,500.00 514,676.22 cr
July 26 Deposit – Cash sales 70,566.38 582,242.60 cr
July 29 917 17,234.92 568,007.68 cr
July 30 Deposit – Freewheelin Coffee 18,745.24 586,752.92 cr
July 30 918 27,910.00 558,842.92 cr
July 31 Transaction fee 25.00 558,817.92 cr
191,535.89 589,443.81
Transactions for July
Once you have completed the setting up of Xero, you can now enter the following transactions. The values given here do not include GST unless you are told otherwise.
Date Details
July 1 Purchased 16 boxes of Item no. 6001 8oz Takeaway Lids (Box 1000) from Olam Specialty Coffee, terms net 30
Purchased 38 boxes of Item no. 5002 CSR Gourmet Cubed Sugar from Crop Del Monte, 2/10, n/30.
Obtained a $275,000 loan from Bank Australia at a simple interest rate of 5% per year. The first interest payment is due at the end of September 2020 and the principal of the loan is to be repaid at the beginning of July four years later.
Purchased for cash five Dutch Cargo Urban Arrow Cargo L electric bicycles from Captain Walker’s Bicycles as part of a plan to provide an eco-delivery service in the local area. The bicycles have a useful life of three years, are depreciated on a straight-line basis and have no residual value. The unit price of the bicycles was $8,325 each but as this was a significant order, the supplier provided a 15% trade discount. Reference 911
2 Paid the full amount owing to FTA Speciality Coffee. Reference 912.
Paid the full amount owing to Kolibri Kofe. Reference 913.
3 Purchased with cash, 12 boxes of Item no. 5003 Bannister Downs Gourmet Cream from North Street Bakery. Reference 914.
4 Made cash sales during the first four days of the month. The following inventory was sold. No reference applies…
• 2 x 7001 Le Marzocco Linea Mini Coffee Machine @ $5,990.00
• 5 x 7003 Baratza Forte Grinder @ $1,089.00 each
• 10 kg x 4302 Dark Horse Blend 1kg @$52 per kg
• 20 kg x 4305 Leonid Ramirez Beans @ 62.00 per kg
• 5 kg of 4310 Panama Geisha beans at $269.00 per kg
• 48 tubs of 5003 Bannister Downs Gourmet Cream at $167.76 per box of 24 tubs.
• 20 boxes x 5005 Premium Drinking Chocolate at @18.00 per box.
• 10,000 6001 8oz Takeaway lids. The sell price is $103.40 per 1,000 lids
• 30,000 6002 12oz Takeaway lids. The sell price is $108.90 per 1,000 lids.
• 8 boxes of 6003 Whadjuk Dreaming KeepCups. Each box contains 12 cups and the sell price of a single cup is $12.10. The cups are sold as a single unit.
• 12 boxes of 6004 Whadjuk Dreaming KeepCup Brew . The sell price of a single box of 12 cups is $261.36. The cups are kept in inventory as a single unit.
6 Today was a trade promotion day and the following credit sales of Item no. 4313 Honduras Blue coffee beans occurred:
• 10 bags to Fothergill Bed and Breakfast
• 20 bags to Sarah’s Hot Spot
• 5 bags to Revamp Coffee Carts
• 6 bags to Freewheelin Coffee
• 9 bags to ChillZone
• 6 bags to Mod Coffee
• 4 bags to Fremantle Coffee
• 140 bags to a new customer who owns several cafes in schools and provides industrial catering services. The new customer is Mio Sapore Foods.
7 Sold 100 bags of Item no. 4301 Medium Roast Arabica Coffee Beans to ChillZone on account.
9 Fremantle Coffee paid the full amount owing on their account as of June 30.
9 Made a significant sale to ChillZone for an upcoming catering contract. Given the size of the order, a trade discount of 10% was given. The discount is to be applied to the retail prices as recorded in the inventory system. The items purchased where …
10 x Panama Geisha
20 x Colombian Reserve
100 x Rwandan Single Origin
10 x Chocolate sprinkles
10 x CSR Gourmet Sugar Cubes
100 x Premium Drinking Chocolate
200 x Raw Sugar Sticks [Box of 2000]
300 x White Sugar Sticks [Box of 2000]
1 x Le Marzocco Linea Mini Coffee Machine
10 Purchased 257 replacement bags of 4313 Honduras Blue beans on credit from Honduras Gourmet Coffee. The roastery has increased the price to $18.50 per bag. The inventory records will need to be updated to reflect this.
11 Made the following cash sales during the week.
10 x Leonid Ramirez beans
23 x Ardi Beans
106 x Cleanskin Blend – On special for the week – 10% discount
27 x Organic Blend
11 x Panama Geisha
18 x Colombian Reserve
37 x Honduras Blue – On special @$36 each
41 x Chocolate Sprinkles
1 x Bannister Downs Gourmet Cream (Box of 24)
32 x Premium Drinking Chocolate
2 x Whadjuk Dreaming KeepCup Brew [Box of 12]
4 x Isomac Tea Coffee Machines
2 x Le Marzocco Linea Mini Coffee Machines
10 x Milk Jug Rinser
ChillZone returned product to the value of $5,990 including GST which had been purchased before June 30 and which was not suitable for them. A credit note was issued.
12 Sold 40 boxes of Item No. 5001 Chocolate Sprinkles to Sarah’s Hot Spot on credit.
13 Paid the full amount owing to Moledina Commodities, reference 915
15 Paid sales staff wages for the two weeks up to and including yesterday, reference 916. The wages expense is $25,515.
17 Sold 10 boxes of 8oz Takeaway Lids (Box of 1000) to Revamp Coffee Carts on account.
18 The following items were sold during the week for cash:
10 x Tightrope Blend
123 x Rwanda Single Origin
206 x Cleanskin Blend – On special for the week – 20% discount
54 x Organic Blend
38 x Colombian Reserve
36 x Medium Roast Arabica Coffee
67 x Crompton Road Blend
23 x Panama Geisha
41 x Raw Sugar Sticks [Box of 2000]
33 x White Sugar Sticks [Box of 2000]
18 x Premium Drinking Chocolate
5 x Whadjuk Dreaming KeepCup [Box of 12]
4 x Isomac Tea Coffee Machines
1 x Le Marzocco Linea Mini Coffee Machines
6 x Mazzer Mini Grinder
18 Returned a faulty product which is no longer carried in inventory, which was purchased before June 30 to Olam Specialty Coffee. Received a credit note for $7,015 GST inclusive.
19 Sarah’s Hot Spot paid a portion of their account. The payment was for $1,500.
21 ChillZone paid the full amount owing on their account.
21 Received a purchase order from Sarah’s Hot Spot for 12 Bannister Downs Gourmet Cream [Box of 24]. Created a corresponding sales order [quote] to deliver gourmet cream.
24 Completed the July 21 order for gourmet cream [credit sale] made by Sarah’s Hot Spot.
25 The following items were sold during the week for cash:
13 x Dark Horse Blend
57 x Risaralda Decaf
92 x Leonid Ramirez
65 x Organic Blend
76 x Cleanskin Blend
24 x Panama Geisha
37 x Colombian Reserve
36 x Rwandan Single Origin
95 x Honduras Blue – On special @$35.03 each
41 x CSR Gourmet Sugar Cubes
33 x Chai Latter Powder
39 x 12oz Takeaway Lids [Box of 1000]
8 x Whadjuk Dreaming KeepCup Brew [Box of 12]
2 x Le Marzocco Linea Mini Coffee Machines
4 x Baratza Forte Grinder
6 x Mazzer Mini Grinder
1 x Acaia Lunar Scale
26 Paid the full amount owing to Crop Del Monte, reference 917
27 Paid the full amount owing to Olam Specialty Coffee, reference 918
28 Ordered 28 x 5004 Organic Chocolate Cream Liqueur from Kolibri Kofe. Agreed terms with Kolibri Kofe are 2/10, n/30. This is a new inventory item. It is purchased for $27.50 per item.
Week 5
29 Paid sales staff wages $27,910 for the two weeks up to and including yesterday, reference 919.
30 Received Organic Chocolate Cream Liqueur, which was ordered on the 28th, agreed terms with Kolibri Kofe are 2/10, n/30.
Freewheelin Coffee paid the full amount owing on their account.
The following items were sold during the week for cash:
6 x Medium Roast Arabica Coffee
12 x Dark Horse Blend
36 x Crompton Road Blend
29 x Leonid Ramirez
43 x Ardi
42 x Panama Geisha
73 x Colombian Reserve
14 x CSR Gourmet Sugar Cubes
93 x 8oz Takeaway Lids [Box of 1000]
1 x Whadjuk Dreaming KeepCup [Box of 12]
2 x Le Marzocco Linea Mini Coffee Machines
2 x Acaia Lunar Scale
Paid Bindi a monthly salary of $26,000, reference 920
31 Complete the bank reconciliation in Xero. You will need to create and upload the bank statement using the template provided by Xero. For reconciliation purposes use your conversion cash at bank balance as the opening balance.
To account for uncleared cheques, see the relevant additional help files in Xero Central. The applicable information is:
• Uncleared Deposits account number is 101
• Uncleared Cheques account number is 252
There are possible bank error(s). Items which are possible bank errors will remain unreconciled. Possible bank errors are normally reported to the bank. Posting in the discussion board is our equivalence of doing the same.
31 Record the following adjusting entries for July.
Depreciation expense using Xero’s Fixed Assets feature
Estimated electricity payable to Synergy Ltd for the month is $4,370
Estimated water usage payable to the Water Corporation for the month is $1,175
Wages incurred during the month but not yet paid to sales staff is $6,600
Interest expense incurred during the month but not yet paid to Bank Australia is $1,145
Interest earned from short-term investments with Bank Australia during the month but not yet paid amount to $165
The value of office supplies used during the month are $20,185
During the month, prepaid rent to the value of $15,000 expired
During the month, prepaid advertising to the value of $15,000 expired
During the month, prepaid insurance to the value of $2,950 expired
31 Prepare and submit any reports as specified including your month end report (memo) to Bindi Tjandamurra.
Note:
• Invoice and credit note numbers are as allocated by Xero.
• Reference refers to cheque number. Enter this number in the applicable reference field.
Additional Help Files
For further assistance with Xero, refer to Xero Central at https://central.xero.com. Some additional guidance/suggested search terms are provided below. For other help topics please refer to Xero Central and/or ask in the Discussion Board in Blackboard.
Applying early payment discounts:
Xero is not configured to account for early payment discounts (Discount Received) so you need to do a work around, that is apply the discount as a negative unit price. Guidance on applying a discount received can be found in Xero Central. Search for “Add a discount to transactions, contacts and inventory items.” The relevant section is headed, “Apply a discount to a supplier bill or credit note”.
Bank Account Setup
See the topic, “Add a bank account or credit card account” in Xero Central
Bank accounts with uncleared cheques
See the topic, “Enter uncleared cheques when converting to Xero” in Xero Central
Bank Loans:
See the topic, “Add a receive money transaction” in Xero Central
Credit Notes
See the topic “Credit notes explained” in Xero Central.
Customer payment is dishonoured
See the topic, “Record dishonoured and reversed payments” in Xero Central
Entering opening balances [conversion balances]
See the topic, “Enter conversion balances” in Xero Central
Entering uncleared cheques when converting to Xero
See the topic “Entering uncleared cheques when converting to Xero” in Xero Central
Fixed assets register setup
See the topic, “Fixed assets” in Xero Central
Payment of more than one invoice by a customer
See the topic, “How to create a batch deposit” in Xero Central
Reporting and Tracking
See the topic, “Reporting and Tracking” in Xero Central.
Setting up and working with contacts [customers and suppliers]
See the topic, “Contacts in Xero” in Xero Central