This question requires you to use Xero accounting software (30-day free trial version, available at: https://www.xero.co

[answerhappygod]

This question requires you to use Xero accounting software
(30-day free trial version, available
at: https://www.xero.com/au/).
Mask Up is a new business that commenced on 1 March 2022. The
business is operated by Mr and Mrs Stitch, as a partnership. For
the purposes of this activity, the business is not registered for
GST. The business will purchase face masks from a manufacturer and
sell them to schools and other education providers in Australia.
The business will stock two different types of face masks:
disposable masks and reusable fabric masks.
The following transactions occurred during March 2022. Note: all
payments were made from the business bank account, and all money
received was deposited into the business bank account.
Date:
Details:
1 Mar
Mr and Mrs Stitch each deposited $100,000 into the business bank
account ($200,000 in total).
1 Mar
The business purchased and paid for 10,000 disposable masks at
$0.50 each and 8,000 fabric masks at $3.00 each from its supplier,
PPE Australia Ltd.
1 Mar
The business paid Allianz Insurance $1,200, for business
insurance for the period 1 March 2022 – 31 August 2022.
6 Mar
The business sold 2,000 disposable masks at $0.80 each, and 600
fabric masks at $6.00 each, to Sydney Grammar School. The school
paid via direct payment into the business bank account.
10 Mar
The business sold 8,000 disposable masks at $0.70 each, and
1,000 fabric masks at $5.00 each, to Bankstown High School. The
school purchased the masks on credit terms, with payment required
by 17 March 2022.
11 Mar
The business purchased 20,000 disposable masks at $0.55 each and
16,000 fabric masks at $3.00 each from its supplier, PPE Australia
Ltd. The stock was purchased on 14-day credit terms.
12 Mar
The business purchased (and paid for) stationery from
Officeworks for $89 (all of the stationery was used during
March).
12 Mar
The business sold 10,000 disposable masks at $0.80 each, and 500
fabric masks at $6.00 each, to Charles Sturt University. The
university paid via direct payment into the business bank account.
12 Mar
The business paid PPE Australia Ltd for the purchases made on 11
March 2022, by electronic funds transfer.
15 Mar
The business paid Facebook Ads $380 for some Facebook
advertisements that ran between 10 March – 14 March 2022.
15 Mar
The business purchased 10,000 disposable masks at $0.55 each and
5,000 fabric masks at $2.00 each from its supplier, PPE Australia
Ltd. The stock was purchased on 14-day credit terms.
16 Mar
The business sold 6,000 disposable masks at $0.80 each, and 500
fabric masks at $6.00 each, to Manly High School. The school
purchased the masks on credit terms, with payment required by 23
March 2022.
20 Mar
The business received $8,000 in the bank account from Bankstown
High School, for part payment of their account (in relation to the
sale made on 10 March).
23 Mar
The business sold 400 fabric masks at $6.00 each, to Newcastle
High School. The school purchased the masks on credit terms, with
payment required by 30 March 2022.
30 Mar
The business received the balance owing from Bankstown High
School, in relation to the sale made on 10 March.
30 Mar
The business sold 9,000 disposable masks at $0.70 each, and 400
fabric masks at $5.00 each, to Goulburn High School. The
school purchased the masks on credit terms, with payment required
by 30 April 2022.
30 Mar
The business received an invoice from Startrack Express Ltd, for
freight costs to deliver the orders to customers (from Mask Up) for
the month of March 2022. The amount payable is $380, and payment is
due on 13 April 2022.
30 Mar
The business received $2,400 in the bank account from Newcastle
High School, for payment of their account (in relation to the sale
made on 23 March).
31 Mar
The business paid Sydney Real Estate $2,000, for business rent
for the period 1 March 2022 – 31 March 2022.
31 Mar
The business was charged a bank fee of $20 for the month of
March 2022, with the amount deducted from the bank account.
31 Mar
The business received an invoice from Telstra, for business
telephone and internet costs for the month of March 2022. The
amount payable is $240, and the due date for payment is 20 April
2022.
Additional information:
Mr and Mrs Stitch have come to you for assistance, as they would
like to use Xero to prepare their accounting records, but are not
sure how to set this up. They also do not have any knowledge of the
perpetual inventory system and average-cost method (which is used
in Xero), and would like you to show them how the cost of goods
sold, gross profit and value of closing inventory is calculated
using this system and costing method. As you prepare to meet with
Mr and Mrs Stitch, you need to complete the following tasks.
Required:
i) Prepare an Excel worksheet for each of the product
lines for March 2022 (one worksheet for the disposable masks, and
one for the fabric masks) using the perpetual inventory system and
the average-cost method, to keep track of the number and dollar
values of units purchased, units sold, units on hand, cost of goods
sold and gross profit made. Paste a copy of your worksheets
into your assignment file (in Word). (5
marks)