BUSN7008 Financial Statements & Reporting
MYOB Assignment
Semester 1, 2023
Assessment Weighting: 20%
Due Date: 4th May 2023 (Week 9 Thursday) 4:00 pm (Canberra Time)
Assignment overview
MYOB is a leading accounting software in the Australasian market. Students are expected to self-learn
MYOB and complete an MYOB practice set by Week 9. A step-by-step MYOB instruction document has
been uploaded on the Wattle page. Through completing an accounting cycle with the MYOB software
in a realistic commercial scenario, students will gain the technical skills, practical experience and
develop analytical and communication skills that are sought after in the job market.
The formation of groups and time budgeting
This assignment is to be completed by students either individually or up to 4 members (no time
extension will be provided on the basis of doing it individually). Group members can be any student
enrolled in this course.
Please note that it usually takes 20+ hours to self-learn the software and complete this assignment.
Time planning and self-discipline are essential.
Internet-based MYOB
 Get access to internet-based MYOB via:
https://buy.myob.com/au/trial?productId=79&pc=EDUPartner&_ga=2.3603376.1812858326
.1679038717-625820113.1679038717
 One group, one company file: a group member can create a new company file and invite
other group members to work on the same company file. As to how to add your groupmates
to a company file, please visit:
https://help.myob.com/wiki/display/myob/Inviting+a+user+to+your+MYOB+business
 Please register an account with MYOB using your university email address for 180-day trial.
Let your group member know the email addresses that you used to register your MYOB
accounts, so that they can add you as a member to work on the same company file.
Questions?
 Mr Dixin Wu (dixin.wu@anu.edu.au). Consultation timetable on Wattle.
Submission
 Students should combine all their works together as one PDF file in the sequence of cover
sheet, financial reports required in part A, financial analysis report required in part B, and
submit this document on Wattle via Turnitin.
 Each group only needs to submit ONE copy (i.e., please ask one of your groupmates to submit
your assignment on Wattle, the remaining group members do not need to submit it again).
Submitting more than once will result in 100% similarity score.
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 Assignments are to be submitted with an RSA Assignment Cover Sheet attached to the front
page (available on Wattle). All members of the group MUST sign the cover sheet for the
assignment. STUDENTS WHO DO NOT SIGN THE COVER SHEET ARE ASSUMED TO HAVE
MADE NO CONTRIBUTION TO THE ASSIGNMENT AND WILL RECEIVE NO MARKS.
 It is assumed that each group member contributed equally unless the group inform the
lecturer that they did not. If group members agreed that they did not contribute equally,
please email the lecturer (copying to all members of the group) a Statement of Contribution
which describes why and how they are unequal, and the percentage of contribution of each
group member. The lecturer, at their discretion, may (or may not) adjust the marks for each
member accordingly.
 Late submissions will not be graded (i.e., zero) unless an extension is granted by the lecturer
prior to the due date.
Documentation, Referencing, and Plagiarism
 Please note that each member of the group is expected to contribute substantially. You are
required to keep brief notes of group meetings and major conversations between group
members, including the topics discussed, the duration of these meetings and conversations and
the group members involved. These notes will not be submitted with the assignment but
must be made available to the lecturer if s/he wishes to read them.
 Where necessary, please use Harvard referencing.
 When requested, you are required to permit “lecturer role” access to the company files on
MYOB cloud to the lecturer. This allows the lecturer to collect evidence of non-plagiarism.
 Plagiarism will NOT be tolerated. The College policy is as follow:
The College regards plagiarism as any appropriation of the ideas or expressions of another
without relevant and appropriate acknowledgement. This includes unattributed appropriation
of text or content and may extend to improper referencing. Plagiarism will not be tolerated in
this course and all discovered instances would be pursued to the full extent allowable under the
rules. Where students have doubts as to how to deal with or acknowledge source materials in
the assignment, they should consult the lecturer or tutor. Please also refer to the ANU Code of
Practice for Student Academic Integrity.
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1-0000 Assets
1-1000 Current Assets
1-2000 Non-current Assets
1-2100 Cleaning Equipment
1-2110 Cleaning Equipment at Cost
1-2120 Cleaning Equipment Accumulated Depreciation
1-2200 Furniture and Fixtures
1-2210 Furniture & Fixtures at Cost
1-2220 Furniture & Fixtures Accumulated Depreciation
1-2300 Office Equipment
THE COMPANY: Cleaning Master
Larry Little recently quit her public service job to start a cleaning company, Cleaning Master, in a
Canberra suburb after discovering the lack of good cleaners in that affluent suburb and market
demand far outweighs the supply of quality cleaning. Larry has also decided that she would
eventually take online bookings, after establishing the business, if all goes well. While she is getting
her business going, she is not going to draw a salary from the business.
She has employed three full time cleaners. Larry is starting her business on 1st July 2022. Given her
lack of experience with accounting software, she has employed you to prepare the accounts for her
first month of operations using MYOB. You need to set up MYOB in accordance with her business
needs. The following sections detail relevant business information for the setting up of accounts and
related information.
1. Business Details
Company Name: Cleaning Master
ABN: 17 256 235 228
Address: Florey, ACT 2615
Phone Numbers: 02-2828 6868
Financial Year: 1 July 2022 to 30 June 2023
2. Accounts List
MYOB’s built-in list for a cleaning service under the administrative and support services industry
classification is an appropriate starting point. Using that template, Larry decided on the following
chart of necessary accounts for Cleaning Master. You will need to edit some of the account names,
delete others and create some new accounts based on the template provided by MYOB. Some
accounts may not be deleted – these will just have a zero balance. Some of the accounts you will just
rename through the Edit function.
1-1100 Cash On Hand
1-1110 Cash Account
1-1200 Accounts Receivable
1-1210 Other Receivable
1-1400 Prepaid Insurance
1-1500 Cleaning Supplies
1-1550 Office Supplies
1-1700 Prepaid Rent
Cleaning Master – Chart of Accounts
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1-2310 Office Equipment at Cost
1-2320 Office Equipment Accumulated Depreciation
2-0000 Liabilities
2-1000 Current Liabilities
6-0000 Expenses
6-1300 Depreciation Expense
2-1100 Credit Cards
2-1200 Accounts Payables
2-1350 PAYG Withholding Payable
2-1355 Superannuation Payable
2-2000 Non-current Liabilities
2-2100 Bank Loans
2-2200 Other Non-current Liabilities
3-0000 Equity
3-1000
Owner's Equity
3-8000
3-1100 Owner Capital
3-1200 Owner Drawings
Retained Earnings
3-9000 Current Year Earnings
3-9999 Historical Balancing
4-0000 Income
4-1000
Services Revenue
6-1500 Office Supplies Expense
6-3100 Advertising Expense
6-4100 Cleaning Supplies Expense
6-4200 Delivery Expense
6-4350 Insurance Expense
6-4400 Rent Expense
6-4500 Telephone Expense
6-4600 Water Expense
6-4700 Electricity Expense
6-5100 Employment Expenses
6-5120 Superannuation
6-5130 Wages & Salaries
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3. Assets Contributed into the Business
The following table shows the formation journal entry needed to account for the assets that Larry has
contributed to the business.
Account Name Debit ($) Credit ($)
Cash Account 20,550
Furniture and Fixtures at Cost 5,000
Office Equipment at Cost 4,000
Cleaning Equipment at Cost 4,500
Cleaning Supplies 950
Owner Capital 35,000
4. Services Information
Sales Layout: Services and items
Income: 4-1000 Service Revenue
Payment Method: Cash
Linked Account: 1-1110 Cash Account
5. Purchases Information
Payment Method: Cash
Linked Account: 1-1110 Cash Account
Supplier Cards:
Card ID Name
SUPP01 Green Earth
SUPP02 Cleaning Warehouse
Cleaning Master buys cleaning supplies including various detergents, cleaning agents, wipes, sprays, and
others, from Green Earth and Cleaning Warehouse.
6. Employee Information
All employees are starting on 1 July 2022 on a full-time basis. They will all be paid weekly.
Card ID First
Name
Family
Name
Annual
Salary
EMP001 Chloe Pepper $52,000
EMP002 Molly Hay $48,000
EMP003 Jessica Wang $48,000
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7. Services Information
Cleaning Master sells the following cleaning packages:
Item # Name Unit of Measure Price
CLE001 Final inspection Each $300.00
CLE002 Final inspection big Each $400.00
CLE003 Weekly cleaning Each $200.00
CLE004 Fortnightly cleaning Each $250.00
CLE005 Monthly cleaning Each $280.00
8. Accounting Policies
i. Cleaning Master uses the accrual accounting method.
ii. Cleaning Master records depreciation at the end of each month.
Cleaning Master prepares end-of-period adjustments on a monthly basis. You will need to
complete all the necessary adjusting entries via the Create General Journal option at the
Accounting function.
vi. Cleaning services are for cash unless otherwise stated, and all cleaning supplies purchases from
suppliers are on credit.
vii. For the purposes of this assignment, ignore company tax – this will be reported in the Income
Statement at the end of the financial year.
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9. Transactions and Events for July 2022
DATE Business Activity
 July 1 The business paid rent for a small office space for the period 1 July to 31 July of
$2,100.
 1 Paid yearly property and work safety insurance (for the period 1 July to next 30
June) of $6,000 cash.
 1 Larry purchased a new laptop of $1500 for personal use with her own money.
 1 Larry negotiated with two major suppliers, Green Earth and Cleaning
Warehouse, to purchase $250 worth cleaning supplies from them in the future.
 1 Paid $200 for office supplies.
 1 The business purchased and received delivery of the following cleaning supplies
on credit from:
Green Earth: $120 cleaning supplies
Cleaning Warehouse: $130 cleaning supplies
 2 Paid online advertising expense of $80.
 6 Cleaning revenue from various clients (cash received):
8 units CLE001 5 units CLE002 12 units CLE003
9 units CLE004 10 units CLE005
Hint: For the assignment purpose, you can create a client named as ‘various
clients’ to record the transaction.
 8 Business paid weekly salaries to all employees. (Payment date: 8 July;
Payment period: 1 July – 7 July)
 12 Paid Green Earth for cleaning supplies purchases made on the 1 July.
 13 Cleaning revenue from various clients (cash received):
 7 units CLE001 12 units CLE002 7 units CLE003
 5 units CLE004 7 units CLE005
 15 Business paid weekly salaries to all employees. (Payment date: 15 July; Payment
period: 8 July – 14 July)
 15 Paid Cleaning Warehouse for cleaning supplies purchases made on the 1 July.
 17 The business purchased and received delivery of the following cleaning supplies
on credit from:
Cleaning Warehouse: $300 worth of cleaning supplies
 20 Paid newspaper advertising expenses of $199.
 20 Cleaning revenue from various clients (cash received):
 5 units CLE001 6 units CLE002 6 units CLE003
 12 units CLE004 12 units CLE005
 22 Business paid weekly salaries to all employees. (Payment date: 22 July; Payment
period: 15 July – 21 July)
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DATE Business Activity
 July 25 Paid Cleaning Warehouse for cleaning supplies purchases made on the 17 July.
 27 The business purchased and received delivery of the following cleaning supplies
on credit from:
Green Earth: $300 worth of cleaning supplies
 29 Business paid weekly salaries to all employees. (Payment date: 29 July; Payment
period: 22 July – 28 July)
 31 Paid $370 water bill.
 31 Paid $430 electricity bill.
 31 Paid $80 in telephone expense.
 31 Physical counts show that there are $170 office supplies and $1200 cleaning
supplies on hand.
Depreciation for the month:
Furniture and Fixtures – $52
Office Equipment – $67
Cleaning Equipment – $125
Complete adjusting entries for office supplies, cleaning supplies, prepaid
insurance, prepaid rent, and depreciation. Round calculated numbers to the
nearest dollar. (To simplify the assignment, there is no need to adjust salaries
expense for the period from 29 –31 July).
Hint: Record via the Create General Journal option.
END OF TRANSACTION LIST
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Requirements
Part A ( 1 0 m a r k s )
Record all the necessary entries including end-of-period adjustments for July. Prepare and print the
following reports for the period ending on the 31 July 2022 by clicking on the Reporting icon and
then Reports:
(i) The General Journals (choose Journal Entries, and restrict the Transaction Type to General
Journal only)
Hint: You need to choose ‘Expand all’ before exporting general journals as a PDF.
(ii) General Ledger
(iii) Trial Balance
(iv) Statement of Profit and Loss
(v) Balance Sheet
Part B ( 1 0 m a r k s )
Larry would like you to:
1. Write a report commenting on profitability, liquidity, and financial position of the business
after this first month of operations in comparison with the cleaning industry averages listed in the
table below.
Ratios Formula Industry Average
Current Ratio Current Assets
Current
Liabilities
5.46
Debt-to-equity Ratio Total Liabilities
Total Equity
2.08
Debt-to-assets Ratio Total Liabilities
Total assets
0.48
Profit margin Net Profit
Total Revenue
0.30
Rate of return on total assets Net Profit
Total assets
0.21
2. Suggest relevant and specific strategies that could improve the store’s operation and
financing situations. In your analysis, you may want to include suggestions about marketing
practices, advertising policies and financing or investing strategies appropriate to the business and
discuss the benefits and limitations of ratio analysis, especially in this context.
Write the report to Larry, up to a maximum of 1,000 words. Word count excludes, if any, table of
content, references and appendices. Given the word limit, no executive summary is expected.
– END –