End of week exercise

End of week exercise

Inventory Items

1. Go to Xero.com and log into your Advantage Tennis Coaching company
2. Click ‘Business’ -> ‘Products and services’ and create two inventory items, follow the ‘add an inventory item’ link.
   After the two inventory items are created, you will see the items are displayed as new products.

3. Using the case study information, record the purchase and sale of inventory as listed on September 5th, 10th, 30th.
4. You will use the same functions discussed previously. For example, to record the transaction on 5 Sept, select ‘Bills to pay’:

• Supplier – Add/use the contact ‘Tennis Supplies’
• Enter the correct transaction date
• due date is ‘5 Oct 2019’ a month later.
• Ensure to select the correct ‘item’ i.e. the pre-established inventory item.
• enter relevant quantity
• click ‘approve’

Recording Transactions

1. continue the other two sales transactions on 10th and 30th September. You will need to use the ‘Invoices’ and ‘Receive Money’ functions.
2. If you have issues of finding the functions, you can go through the Xero Central Support Resources, for example:

• Create an invoice for your customer
• Add a receive money transaction

3. Using ‘Spend Money’ function to record the transactions for AMI Insurance and Welcome Bank (interest) on 30th Sept.
4. Using ‘Receive Money’ record the transaction for Albany School. Ensure appropriate GST is applied.
5. After recording all transactions, your bank account should look like this:

6. compare the bank balance with the bank total in Excel and manual bank ledger:

7. to record the deprecation transactions, go to ‘Accounting’ and select ‘Manual journals’, click ‘New Journal’. After entering the journals, your posted journals will look like this:

Product Reports

1. Go to Accounting tab, Find ‘Profit and Loss’ statement
2. Change the date to show the period 1 September to 30 September 2019, then click ‘Update’. It should look like this:

3. compare the income statement in Xero with Excel

4. Go to Accounting tab, Find ‘Balance Sheet’ statement.
5. Change the date to show 30 September 2019, then click ‘Update’. It should look like this:

6. compare the Balance Sheet in Xero with Excel