Question

Background Assume that Brisbane Divers operates as a partnership and you and your group members are the owners of that company. Brisbane Divers specializes in selling locally manufactured diving equipment and takes students on diving courses in its boat. The business charges GST on all inventory sales and dive lessons and pays GST on inventory purchases and most business expenses. Employees Brisbane Divers employs two casual assistants. Julia Hilton works as a dive instructor on the boat, and Peter Ball works in the shop selling stock, and taking bookings for dive lessons. Each employee works between 20 to 30 hours per week, depending on the season and demand. Payday is every second Saturday. The following information is used to calculate their wages: Name Role Gross pay- Per hour ($) PAYG tax Per hour ($) Julia Hilton Dive instructor 25 6 Peter Ball Shop assistant 20 5 At the end of July, Brisbane Divers owed 4 hours pay to both 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, except Wages. Merchandise Inventory: The following is a list of closing inventory and the suppliers as at July 31 2018. Each of the above items of inventory is quoted excluding GST. Restocking inventory. The required inventory is purchased on credit under the terms of payment required by the suppliers. Your group members have a good relationship with each of the suppliers once your company places an order, the suppliers will deliver them free of charge the same day. Lessons: A part of Brisbane Divers’ income is earned from conducting diving lessons. The lessons are quoted excluding GST. Lessons revenue must be recorded separately from 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 of inventory received on July 28th all purchases are on terms net 30 days. Customer Information: Brisbane Divers sells most of its inventory strictly on a cash basis, but the business has three credit customers. Terms of payment 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). [chq 90] 3 Paid Cash for vehicle expenses- $275 – (GST Inclusive) [chq 91] 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 each person). The course commences on August 8 (since the service will be provided within August, consider this as cash sales for August directly. No need to record as unearned.) 7 Paid SeaWorld Ltd. for July account. [chq 95] 7 Paid advertising in the Williamsville Times - $275(GST Inclusive) [chq 96] 8 Sales Invoice sent to Swimmers World for the following items: 15 x DMS, 18 x SNO 9 Pay day. Julia was paid for 30 hours and Peter was paid for 22 hours, which includes wages owing from July [chq 97 and 98] 12 Received payment from Brisbane Academy World for July account. 14 Cash sales: Inventory sold: 10 x DMS, 12 EPS 16 Cash drawings – Cheque payable to one of your group members$5000[chq 99] 16 Paid Planet Dives Ltd. for July accounts. [chq 100] 19 10 cash customers paid for diving course. ($150+GST each person).( 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 this transaction. [ chq 101] 23 Pay day. Peter was paid for 20 hours and Julia was paid for 25 hours. [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) [chq 105]

Preprare a general journal NOT general ledger