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Company Name: Abcde Pty Ltd

The company began operations as a retailer on 1 July 2018. It buys and sells one inventory item, derrings, from a leased warehouse in the outer suburbs of Melbourne.

The company is registered for GST, which it pays quarterly. Assume GST was last paid on 30 June. It uses the Moving Weighted Average method and the perpetual inventory recording method.

The company uses the straight line depreciation method for office furniture and computers and the reducing balance method for motor vehicles.

The company employs two people who are rostered over a seven day working week. The employees are paid fortnightly up to and including the day of payment. There are no penalty wages.

The company has one debtor (Debtor1) and one creditor (Creditor1). Terms for all credit sales and purchases are 30 days.

Relevant information

The company has the following opening balances as at the 1st of July in the current financial year:

Cash at Bank: $22,326.00

Accounts receivable: $3,848.00

Allowance for doubtful debt: $341.00

Inventory: $11,160.00

Motor vehicle: $23,619.00

Accumulated depreciation motor vehicle: $2,097.00

Accounts payable: $5,412.00

Bank loan owing (due in 20 months): $11,102.00

Telephone payable: $169.00

Office furniture: $11,969.00

Accumulated depreciation office furniture: $1,453.00

Office supplies: $558.00

Share capital: $34,482.00

Retained earnings: balance amount $18,424.00

Transactions for the month (all dollar amounts include GST where applicable):

02 July Sales on credit 53 units

02 July Purchased office supplies on credit $678.00

02 July Paid accounts payable $1,269.00

03 July Received payment from accounts receivable $804.00

05 July Sales on credit 51 units

06 July Customer returned 5 unit(s) in excellent condition for a full refund from the sale on 05 July

06 July Paid accounts payable $1,453.00

07 July Purchased inventory on credit 20 units at the cost per unit of $24.00

08 July Received advertising invoice (due in 30 days) $706.00

08 July Paid motor vehicle expenses $102.00

08 July Paid accounts payable $1,152.00

10 July Purchased computer on credit $2,459.00

11 July Sales on credit 54 units

12 July Paid wages (ignore PAYG tax) $2,103.00

14 July Purchased inventory on credit 29 units at the cost per unit of $28.00

18 July Sales on credit 63 units

20 July Purchased inventory on credit 20 units at the cost per unit of $26.00

21 July Paid insurance $2,176.00

22 July Sales on credit 77 units

22 July Paid outstanding telephone bill in full

23 July Paid rent for the current month $3,977.00

24 July Purchased inventory on credit 30 units at the cost per unit of $24.00

25 July Abcde returned 4 unit(s) to their supplier for a full refund from the purchase on 24 July

26 July Paid wages (ignore PAYG tax) $1,542.00

26 July Received payment from accounts receivable $557.00

29 July Sales on credit 50 units

30 July Purchased inventory on credit 30 units at the cost per unit of $24.00

30 July Received payment from accounts receivable $853.00

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