MAA103 - Double Entry Accounting Assignment

Relevant information:

Opening balances as at 01/01/2022

Account name

Value

Cash

$192,366

Accounts receivable

$17,568

Inventory

$71,176

Accounts payable

$22,294

Office Furniture

$28,500

Accum. Depreciation - Office Furniture

$11,400

Office Supplies

$26,038

GST Paid

$85,412

GST Collected

$119,578

Capital

$267,788

Transactions for the month ended 31/01/2022

Date

Description

3/01/2022

The business paid $6690 to 'Leonardo Painting Corporation' for credit purchases made in previous months.

5/01/2022

Sold paintings for $8580 (GST inclusive) to 'CW Bank' for decorating a new office building and 'CW Bank' paid the full amount in cash.

7/01/2022

Purchased $4620 of inventory (GST inclusive) from 'Leonardo Painting Corporation', paid 40% of the full amount and the remainder was not yet paid.

10/01/2022

Sold 36 paintings to 'KC mall' on credit.

12/01/2022

Purchased a delivery van that costs $20460 (GST inclusive) with the assistance of a bank loan. Assume that the loan amount is paid directly to the supplier.

14/01/2022

The business hired a marketing consultant to provide advice on marketing strategy and was charged $1782 (GST inclusive). The business has not yet made the payment to the consultant.

17/01/2022

Megan's son will attend university next year and needs a computer for studying. Megan purchased a computer at $2310 (GST inclusive) for her son using the business's cash at bank.

18/01/2022

Provided hanging services to 'KC mall' and 'CW Bank' and billed each customer for 11 hours. 'CW Bank' paid on the day the services were performed and 'KC mall' will pay within 30 days.

19/01/2022

Business paid Utilities bill of $1298 (GST inclusive).

20/01/2022

Paid employee salaries for the month – Gross Amount $26,790; PAYG Tax Deducted $6,698; staff were paid the net

amount in cash.

23/01/2022

The business received a partial payment of $4762 from 'KC mall' for the amount it owed to the business.

26/01/2022

Following the marketing advice, the business successfully attracted a new customer 'Barclay Conference Center' and made cash sales of painting to it for $7260 (GST inclusive).

27/01/2022

Paid off all debts outstanding to' Leonardo Painting Corporation' including any payables at the beginning of the month.

28/01/2022

The business offered decoration consultation to 'Barclay Conference Center' for $1452 (GST inclusive). The total amount was settled in full on the day.

31/01/2022

Purchased additional office furniture worth $34,100 (GST inclusive), half of the full amount was settled with cash and the remaining 50% was financed through a loan. Assume that the loan amount is paid directly to the seller.