Complete the accounting cycle from journal entries to financial statements Cleaner Pools Ltd is a small pool shop situated in Oatley in the southern suburbs of Sydney. The business sells and repairs pool filters as well as providing consulting services on pool layouts. At 30 June 2022 it had the following assets, liabilities and shareholders’ equity account balances: cash $3000; accounts receivable $4000;

inventory $4500; creditors $3500; retained profits $2000; and share capital $6000. The company’s chart of accounts is shown.

01 Cash 02 Accounts receivable 03 Inventory 04 Prepayments 11 Furniture and fittings 12 Accumulated depreciation – furniture and fittings 20 Accounts payable 22 Accrued expenses 30 Share capital 31 Retained profits 40 Sales 41 Consulting revenue 42 Repairs revenue 50 COGS 51 Salaries 52 Rent 53 Motor vehicle expenses 54 Stationery 55 Depreciation – furniture and fittings 56 Advertising 57 Photocopier rental expenses The following transactions occurred during July 2022:
Date Transaction July 1 Paid $2400 for three months’ rent on the premises, which covers from 1 July to 30 September 2022.
5 Completed a consulting job providing advice to a local developer on the design of a pool. Invoiced the developer for $1400 to be paid in 15 days.
6 Repaired a pool filter and received a cash payment of $100.
8 Credit purchase of shelving for $2100 in the business office (payable in 30 days). Cash payment of $300 to a tradesperson for installation of the shelves.
11 Sold three filters for $900 cash each. (Cost of goods was $1600 in total.)
13 Paid accounts payable, $3500.
15 Received $4000 from accounts receivable.
16 Purchased, for cash, office furniture that had a list price of $4000 but was on sale for $3000.
18 Received a bill for $400 for advertising, payable in 10 days.
19 Paid the rental expense on the company photocopier of $400, which covers the month of July.
23 Cash petrol expenses, $50.
24 Cash purchase of office stationery, $100.
28 Paid advertising bill.
29 Paid salaries for the month of $2000. An amount of $200 in wages was still owing at the end of the period.
29 Received $1400 for 5 July transaction.
31 Charged depreciation on the furniture and fittings of $100.
1 Show the relevant journal entries.
2 Post to the ledger.
3 Extract a trial balance at 31 July 2022.
4 Prepare an income statement for the month of July 2022 and a balance sheet as at 31 July 2022.