ACCTG 222 2020 S2
Group Assignment
Cover Page
Group ID per Canvas
Member Name
Student ID
Jimmy Liang
328044316
Liangzhen Zhou
716771873
Zixun Yao
374813139
Xiaohang Song
545633280
Song Wang
8738472
Note – Have you invited
acctg222@auckland.ac.nz
as an admin user?
Yes
Business Summary
Gong Cha is a well–known beverage company, which was founded in Kaoshiung, Taiwan in 2006. It has an
exceptional reputation in the bubble tea industry worldwide. Gong Cha takes pride in what they do. They only
use high–quality tea leaves in their drinks and carefully extract the tea leaf at the same temperature. They brew
their teas freshly in their outlets to ensure the freshness and flavourful in every cup of tea. They are aiming to
provide customers with the best quality drinks and services. Gong Cha is the fastest growing tea brand in
Australasia with over 600 stores across Asia, USA, Australia and now 18 in New Zealand.
Gong Cha has various products. Its main product is bubble tea (milk tea) with toppings such as pearls and
pudding. Drinks are often made customised, so you can choose your ice and sugar level based on your
preferences. Flavoured fruit tea and yogurt are also popular and are considered a healthier option.
The targeted customers of Gong Cha are people aged between 14 and 30. Since bubble tea is still a fresh concept
to New Zealand, the younger generation would be more involved and adapted. People over the age of 35 are
more in pursuit of a healthy lifestyle, so they can be hesitant sometimes. However, Gong Cha is continuing its
product innovation for a healthier option to capture the market. Gong Cha also provide loyalty cards to
customers for high retention. Furthermore, Gong Cha is often located in places with high mobility, such as
shopping malls and university campuses to attract more foot traffic.
By far, Gong Cha has about 200 employees in total in New Zealand. On average, there are roughly 11
employees in each store. As a result, wages and salaries are one of their highest expenses($170k). The actual
sales per store per year for 2019 is $800k. Gong Cha plans to grow to $900k per store in revenue for 2020.Busi
System Flowchart
Design Rationale
Here at Gong Cha, we adopted block codes for our chart of accounts, which is a common accounting coding
system.
Accounts start with 1xxx are our asset accounts, with current assets range 1–1xx and non–current assets 1–2xx.
We have removed some of the default accounts on MYOB to better suit our beverage business. Similarly,
liability accounts sequence from 2xxx, with current liabilities from 2–1xx to 2–3xx and non–current liabilities
from 2–4xx.
Equity accounts are coded 3xx, this includes owner’s contribution 3–1000, and retained earnings from last
period, 3–1600.
