Task 1:
Create a new MYOB file for Bar Stado Pty Ltd. The following details may assist you with this task:
Company Name: Bar Stado Pty Ltd
ABN: 111 222 33344
Address: 10 Norton Street, Leichhardt NSW 2040
Phone Number: 95318008
Current Financial Year 2014
Last Month of Financial Year: June
Conversion Month: June
Number of Accounting Periods Twelve
Task 2:
Using the Setup Assistant ensure that the list of accounts includes the following, and enter the opening balances as at 1 June 2014. You will need to assign account numbers for any new accounts.
Account Name Balance
Accounts Payable 4,700
Accounts Receivable 1,500
Accrued Expenses 1,779
Accumulated Depreciation - Computer Facilities 104
Accumulated Depreciation - Furniture, Fixtures and Fittings 167
Accumulated Depreciation - Building 330
Allowance for Doubtful Debts 50
Building 200,000
Share Capital 146,000
Cash 9,100
Computer Equipment 5,000
Furniture, Fixtures and Fittings 25,000
GST Collections 4,300
GST Outlays 900
Inventory (Alcohol) 8,430
Loan Payable 100,000
Prepaid Insurance (Prepaid until 31 August 2014) 7,500
Task 3:
Bar Stado Pty Ltd entered the following transactions in the month of June 2014. You are required to enter these transactions into MYOB.
(Command Centre>Accounts>Record Journal Entry)
PLEASE NOTE:
A small, selected group of patrons have been granted a 'bar tab' at the club. These patrons can therefore acquire drinks at the club on credit. Each fortnight a bill is sent to the homes of June 1 $8,800 (GST inclusive) was paid to rent premises for the period 1 June to the 31 August.
2 Hired two new employees. Each employee is to receive a salary of $35,000 per year.
3. The employees will commence employment on the 4th of June.
4 Banked the cash component of $7,700 (GST inclusive) from bar sales.
6 Negotiated with the local bank for a $10,000 bank overdraft facility.
7 Banked the cash component of $7,150 (GST inclusive) from bar sales.
10 Purchased $4,400 (GST inclusive) alcohol on credit from the clubs main alcohol supplier, "Liquor King".
11 Paid $1,200 wages owed to contractors for renovations performed in May 2014. This amount that was owing was recorded as an Accrued Expense.
14 Purchased a new computerised cash register on credit from "NTU Office Supplies".
The cost of the register is $2,200 (GST inclusive).
15 Banked the cash component of $5,500 (GST inclusive) from the previous weeks bar sales.
17 Paid the full amount owed to "NTU Office Supplies".
18 Paid $9,500 wages to employees for work performed so far in the month of June.
19 Paid the telephone bill for May. The bill amounted to $484 (GST inclusive)
19 Banked the cash component of $5,390 (GST inclusive) from the previous weeks bar sales.
20 Purchased $1,056 (GST inclusive) worth of alcohol using cash.
20 Repaid $2,500 owed to "Liquor King".
22 Banked the cash component of $5,610 from the weekends bar sales.
22 The GST for the month of May was paid to the ATO. The GST Collected in May was $4,300 and GST Outlaid was $900.
23 Received $11,000 (GST inclusive) in advance from the Dance Society of NSW for a function to be held at the club in late July. Preparation for the function will begin in early July.
24 Purchased $8,800 (GST inclusive) worth of alcohol from "Liquor King". Half of this purchase was made on credit.
27 Banked the cash component of $5,060 (GST inclusive) from the previous weeks bar sales.
27 A customer owing $40 has filed for bankruptcy and hence his debt has been written off as uncollectible.
28 Made a $4,000 loan repayment. $2,800 of this payment went towards the payment of interest on the loan.
28 Banked the cash component of $5,280 (GST inclusive) from the previous weeks bar sales.
29 Paid $5,000 that was owed to "Liquor King"
30 Received $400 owed by a patron.
30 Paid $9,000 wages to employees for the rest of the work performed in June.
30 The owner withdrew $1,700 from the business in order to repay a personal debt.
Task 4:
Generate the following reports from MYOB:
1. A Balance Sheet as at 30 June 2014
2. A Profit and Loss Statement for the period 1 June 2014 to 30 June 2014
3. General Journal for June 2014
4. Trial Balance as at 30 June 2014
Command Centre>Reports>Standard Balance Sheet/Profit & Loss Accrual/General Journal/Trial Balance)
Each of these must be attached as part of the appendix to the report written in Task 6.
Task 5
Using the reports generated at Task 4, you are required to perform the following analysis for Bar Stado Pty Ltd:
1. Prepare a horizontal analysis between the account balances as at 31 May 2014 and the Balance Sheet as at 30 June 2014.
2. Prepare a vertical analysis of the Balance sheet and Profit and Loss Statement.
3. Calculate the following ratios as at 30 June 2014 (where possible):
a) Profit Margin
b) Return on Total Assets
c) Return on Equity
d) Current Ratio
e) Quick Ratio
f) Debt Ratio
g) Times Interest Earned
Ensure that you show all workings for all the ratios calculated in requirement 3.
Task 6
On the basis of your analysis at Task 5, you should write a report to the owner of Bar Stado Pty Ltd, Johnny Stecchino, and explain the findings of your financial statement analysis. In your report you should include the following:
- Table of Contents
- Introduction
- Body
o Analyse the findings from your horizontal analysis, vertical analysis and ratio analysis. You should attempt to critically analyse the findings, rather than restating the findings.
o Identify areas from your analysis that you consider to be strengths or weaknesses for the company.