6:06 Safari il 4G Section B: 3 Case Studies Question 1) 12 Marks Chloe runs a retail store as a sole trader. She is registered for trading name (Chloe de Lune) and GST. Chloe uses the FIFO periodic cost flows. The adjusted trial balance as of 30 June 2020 is prepared by her accountant as follows; CHLOE DE LUNE Adjusted trial balance as of 30 June 2020 Account Name Debit Credit Cash at bank $98,000 Accounts Receivable $12,500 GST Paid $4,800 Inventory $15,000 Supplies $7,000 Prepaid Insurance $1,400 Store Equipment $50,000 Acc. Depreciation. - Equipment $20,250 Accounts Payable $11,000 GST Collected $9,900 Chloe's Capital $200,000 Chloe's Drawings $40,000 Sales Revenue $350,000 Sales Returns and Allowances $20,000 Sales Discount (D/C Allowed) $5,000 Purchase $270,000 Purchase Returns and Allowances $21,200 Purchase Discount (D/C Received) $3,500 Freight Inwards $8,800 Freight Outwards $17,000 Advertising Expense $22.000 Insurance Expense $800 Supplies Expense $6,800 Depreciation Exp - Equipment $12,750 Rent Expense $24,000 Total $615,850 $615,850 Note: Chloe's accountant has not adjusted inventory account yet Chloe undertook a stock-take and calculated that 6:06 il 4G Safari Note: Chloe's accountant has not adjusted inventory account yet . Chloe undertook a stock-take and calculated that inventory worth $32,840 was still on hand . Consider 'GST paid' as an asset account: not a 'contra- liability account . Consider 'Discount Allowed' as a contra-sales account: not 'selling expense . Consider 'Discount Received as a contra-purchase account: not other income Ignore income tax Required; A) Prepare an income statement for the year ended 30 June 2020 3 marks B) Prepare a statement of changes in equity for the year ended 30 June 2020 3 marks C) Prepare a balance sheet as at 30 June 2020. 3 marks D) Justify why Chloe can claim a GST credit (GST paid) from the ATO 3 marks = A) Prepare an income statement for the year ended 30 June 2020 3 marks CHLOE DE LUNE Income Statement For the year ended 30 June 2020 INCOME Net Sales Revenue Net Purchase 6:06 il 4G Safari A) Prepare an income statement for the year ended 30 June 2020 3 marks CHLOE DE LUNE Income Statement For the year ended 30 June 2020 INCOME Net Sales Revenue Net Purchase Cost of Goods Purchased Goods Available for Sale II Cost of Goods Sold GROSS PROFIT (MARGIN) OTHER EXPENSES TOTAL OTHER EXPENSES PROFIT BEFORE TAX B) Prepare a statement of changes in equity for the year ended 30 June 2020 3 marks CULAR DE LLINE . 4G 6:06 Safari PROFIT BEFORE TAX 602.. B) Prepare a statement of changes in equity for the year ended 30 June 2020 3 marks CHLOE DE LUNE Statement of changes in Equity For the Year ended 30 June 2020 Chloe, Capital-Beginning Increase or Decrease in Equity Chloe, Capital-Ending C) Prepare a balance sheet as at 30 June 2020. 3 marks CHLOE DE LUNE Statement of financial position As at 30 June 2020 ASSETS Current Assets Total Current Assets Non-current Assets Total Non-current Assets TOTAL ASSETS LIABILITIES Current Liabilities Total Current Liabilities TOTAL LIABILITIES 6:06 . 4G Safari C) Prepare a balance sheet as at 30 June 2020. 3 marks CHLOE DE LUNE Statement of financial position As at 30 June 2020 ASSETS Current Assets Total Current Assets Non-current Assets Total Non-current Assets TOTAL ASSETS LIABILITIES Current Liabilities Total Current Liabilities TOTAL LIABILITIES NET ASSETS EQUITY TOTAL EQUITY D) 'GST paid' is considered as an asset or a contra-liability'. Justify why Chloe can claim a GST credit (GST paid) from the ATO 3 marks 6:06 Safari l 4G Total Current Liabilities TOTAL LIABILITIES NET ASSETS EQUITY TOTAL EQUITY D) GST paid' is considered as an asset or a 'contra-liability Justify why Chloe can claim a GST credit (GST paid) from the ATO 3 marks =
