At the end of July, Brisbane Divers owed 4 hours pay toboth Peter and Julia.
Note:Do not use the employee section of MYOB,record the wages expense and tax as a cash payment. Goods and Services Tax All transactions which incur GST are identified, the GST is 10%
Goods and Services Tax:
Brisbane Divers pays GST of 10% on all business expenses, exceptWages.
Merchandise Inventory:
The following is a list of closing inventory and the suppliersas at July 31 2018.
Each of the above items of inventory is quoted excludingGST.
Restocking inventory.
The required inventory is purchased on credit under the terms ofpayment required by the suppliers.
Your group members have a good relationship with each of thesuppliers once your company places an order, the suppliers willdeliver them free of charge the same day.
Lessons:
A part of Brisbane Diversâ income is earned from conductingdiving lessons.
The lessons are quoted excluding GST. Lessons revenue must be recordedseparatelyfrom sales.
Quantity on hand
Item Code
Description
Cost Price
Sale Price
Supplier
23
DMS
Diving Masks
$130
$250
Scuba Gear Ltd.
24
EPS
Exposure Protection Suits
$150
$280
Planet Dives Ltd
38
SNO
Snorkel
$10
$20
SeaWorld Ltd
Item Code
Lesson Type
Fee Course
DL
Diving lessons
$150
Suppliers account balances as at July 31, 2018:
Name
Address
ABN
Account Balance
Planet Dives Ltd.
400 Sydney Road, Wingy
30 444 777 333
$944
Scuba Gear Ltd.
11, Tide Towers Williamsville.
20 888 555 222
$1280
SeaWorld Ltd.
79 Rountree road, Spotswood
92 000 333 666
$2330
Each of the above account balances represents deliveries ofinventory received on July 28th all purchases are on terms net 30days.
Customer Information:
Brisbane Divers sells most of its inventory strictly on a cashbasis, but the business has three credit customers. Terms ofpayment for these customers are net 30 days.
Name
Address
ABN
Date Last Invoice
Account Balance
Swimmers World
13 Colombo Street, , VIC 3292
50 999 555 666
July 26
$2 350
Brisbane Academy
47 Bloomy Road, , VIC 3292
92 555 888 111
July 19
$1 940
Westley Academy
33 Departure Drive VIC 4000
20 888 444 999
July 13
$4 400
Trial Balance as at July 31, 2018
Ledger Account
Debit ($)
Credit ($)
Bank
16 096
Stationery
2 500
Prepaid Insurance
3 000
Merchandise Inventory
6 970
Trade Debtors
8 690
Trade Creditors
4 554
Motor Vehicle
22 500
Accumulated Depreciation of Motor Vehicle.
6 850
Diving Equipment and Boat
38 900
Accumulated Depreciation of Dive Equip & Boat
11 230
Shop Fittings
5 750
Accumulated Depreciation of Shop Fittings
575
GST Collected
4 198
GST Paid
2 837
Capital
53 000
Loan - ANZ Bank, William Street.
25 500
PAYG Tax Payable
540
Wages Payable
136
Electricity Payable
660
$107 243
$107 243
Transactions: August 2018
Date
Description
1
Paid rent for 2(two) months - $4,400 (GST Inclusive). [chq90]
3
Paid Cash for vehicle expenses- $275 â (GST Inclusive) [chq91]
3
Paid Scuba Gear Ltd. for July account. [chq 93]
4
Received payment from Swimmers World for July account.
4
Purchased more inventory 25 x DMS, 20 x EPS, 25 x SNO
4
Cash sales: Inventory sold: 10 x DMS, 6 x EPS, 20 x SNO
4
Paid electricity bill for July $ 660(including GST) [chq 94]
5
Five cash customers paid for diving course. ($150+ GST eachperson). The course commences on August 8 (since the service will beprovided within August, consider this as cash sales for Augustdirectly. No need to record as unearned.)
7
Paid SeaWorld Ltd. for July account. [chq 95]
7
Paid advertising in the Williamsville Times - $275(GSTInclusive) [chq 96]
8
Sales Invoice sent to Swimmers World for the following items: 15x DMS, 18 x SNO
9
Pay day. Julia was paid for 30 hours and Peter was paid for 22hours, which includes wages owing from July [chq 97 and 98]
12
Received payment from Brisbane Academy World for Julyaccount.
14
Cash sales: Inventory sold: 10 x DMS, 12 EPS
16
Cash drawings â Cheque payable to one of your groupmembers$5000[chq 99]
16
Paid Planet Dives Ltd. for July accounts. [chq 100]
19
10 cash customers paid for diving course. ($150+GST eachperson).( The course commences on 20th of August)
21
Received payment from Westley Academy for July account
23
Paid monthly repayment to ANZ for bank loan. $500 (includes $50 interest). GST is not payable on thistransaction. [ chq 101]
23
Pay day. Peter was paid for 20 hours and Julia was paid for 25hours. [chq 102 and 103]
25
Paid Electricity for August - $880 (GST Inclusive) [chq 104]
29
Swimmers World paid for items purchased on August 8.
31
Paid Telephone Expenses for August $660 (including GST) [chq105]
Adjustments at 31 August 2018
Depreciation of motor vehicle 20 % per annum at cost.
Depreciation of diving equipment and boat $6000 per annum.
Depreciation of Shop Fittings 10 % per annum at written downvalue.
Accruedwages:Peterâ28hourandJulia22hours.
Accrued Cleaning expenses for August $ 1100(including GST). Atax invoice has been
received.
Stationery on hand at 31 August 2018 totaled $ 1590.
The portion of prepaid insurance expired as of 31 August 2018 is$2,500.
Water bill for August is unpaid and unrecorded $750 Plus GST. Atax invoice has been
received.
Part A: Manual Recording
IMPORTANT: Part A ManualRecording
Required:
Record the opening balances as at 1 August 2018 in theappropriate general ledger accounts.
Record August monthâs transactions in the general journal andpost these to the generalledger.
Record end of month adjustments in the general journal and postthese to the general ledger.
Prepare a Trial Balance after end of month adjustments as at 31August 2018
1.Enterthebusinessinformation,establishachartofaccounts,recordsupplierandcustomerbalances, enter inventory balances and record opening ledgeraccount balances as at 1 August 2018.
2. Record the transactions, including the adjusting entries, forthe month of August 2018.
3. Produce Trial Balance as at August 31st, 2018 (after alladjustments). (This MUST be directly printed from MYOB).
4. Produce Transaction Journal from 1 August to 31 August forall transactions. (This MUST be directly printed from MYOB).
5. Produce Income Statement for month ended August 2018 (ThisMUST be directly printed from MYOB).
6. Produce Balance Sheet as at 31st August 2018 (This MUST bedirectly printed from MYOB).
Accumulated Depreciation â Bldgs and Improvements
$
43,750.00
170
Hire Equipment (Cost)
108,000.00
171
Accumulated Depreciation â Hire Equipment
67,500.00
180
Motor Vehicles (Cost)
29,900.00
181
Accumulated Depreciation â Motor Vehicles
8,970.00
190
Store Equipment (Cost)
14,700.00
191
Accumulated Depreciation â Store Equipment
6,615.00
200
Accounts Payable
5,824.00
210
GST Collected
5,745.90
220
PAYG Withholding Payable
1,120.00
230
Superannuation Payable
432.00
280
Bank Loan
220,000.00
310
Capital
151,156.00
315
Drawings
36,000.00
400
Hire Service Income
122,880.00
410
Lesson Income
25,530.00
420
Discounts Received
392.10
430
Freight Collected
85.00
600
Advertising
2,150.00
605
Bank Charges
112.40
610
Cleaning
800.00
615
Depreciation
35,323.00
625
Electricity
3,480.50
630
Freight Expense
962.35
635
Insurance
4,193.75
640
Interest Expense
14,002.80
645
Motor Vehicle Expenses
2,530.00
650
Office Supplies
118.80
655
Printing and Postage
109.10
660
Rates and Taxes
1,812.25
665
Repairs and Maintenance
675.00
670
Ski Instruction Charges
13,710.00
675
Staff Amenities
234.70
680
Superannuation
1,404.00
685
Telephone
1,137.40
690
Wages and Salaries
15,600.00
$
660,000.00
$
660,000.00
Use the Trial Balance as at 31 May 20XX to enter the openingbalances in the general ledger accounts. Note, use "Balance" as thecross reference when posting the balances to the general ledgeraccounts.
Min Armim Wasteage - Chart of Accounts as at 1 July 2017
103
Petty Cash
250.00
105
Bank
3,860.00
107
Accounts Receivable Control
15,038.00
109
Allowance for Bad and Doubtful Debts
462.00
111
Inventory on Hand
8,208.00
113
Stationery on Hand
130.00
115
Prepaid Insurance
1,800.00
116
Prepaid Rent
10,000.00
140
Premises
140,000.00
150
Vehicle
23,000.00
151
Acc. Depreciation âVehicle
229.00
160
Equipment
6,400.00
161
Accumulated Depreciation â Equip
1,460.00
199
GST Receivable
1,000.00
207
Accounts Payable Control
5,687.00
205
Wages Expense Payable
862.00
210
Accrued Telephone Expense
481.00
220
Office Supplies Owing
186.00
299
GST Payable
1,950.00
250
Big 4 Bank Mortgage Loan (5-year)
123,000.00
303
Capital â Minnie Armim
75,369.00
Additional Notes
Schedule of Accounts Receivable
as at 1 July 2017
Acc. No.
10701 Unplugged Limited 660
10703 Vin Walker 1,795
10705 The Charity Stores 480
10707 Developing Naturally 6,111
10709 Dental Services SA 2,552
10711 Hotels United 3,440
15,038
Schedule of Accounts Payable
as at 1 July 2017
20701 Get Connected Limited 4,250
20703 Reduce, Reuse, Get Rich 568
20705 Flooded Industries 869
5,687
You will need to enter this information into the appropriate subsidiary ledger accounts.
Task 2
Using the excel file you have already been working on, enter the transactions below into the General Journal and then update the Ledger accounts as required.
Transactions
July 1 Sold 40 Energy Saving light globes on credit to Unplugged Ltd for $440 (including GST).
July 2 Received a cheque for $575 from Vin Walker as part payment of their account.
July 5 Issued Cheque number 718 to Flooded Industries. The cheque amount was $782.10 and a discount of $86.9 (including GST of $7.90) was received for early payment.
July 8 Purchased 200 metres of premium low voltage cabling from Get Connected for $4 per metre, plus a total freight charge of $50 and total GST of $85.
July 12 Received $450 cash (net of GST) from Ms Elvia Marks for a full house inspection and energy usage report.
July 13 Purchased 1000 Energy Saving light globes for $3 each from Get Connected Ltd. The delivery charge was $100. All amounts are net of GST. Their invoice No: 726.
July 15 Cash Sale of 12 Energy Saving light globes to Ms Christa Heathers for $10 each (net of GST)
