Background Information

Mario and Luigi, two former QUT students, recently startedYoshi Super Marketing Pty Ltd. Thecompany specialises in high quality marketing services to a wide range of international clients. Their services include print, digital and social media marketing in multiple languages.The unadjusted trial balance for Yoshi Super Marketing Pty Ltd as at 31 August 2020 is below.

Unadjusted Trial Balance as at 31 August Debit Credit

Cash at Bank 62,913

Accounts Receivable 11,605

Prepaid Insurance 2,880

Office Supplies Inventory 1,830

Computer Equipment - Original Cost 10,584

Computer Equipment - Accumulated Depreciation 4,410

Accounts Payable 4,750

Unearned Fees Revenue 10,000

PAYG Withholding * 2,470

Loan Payable - Current 4,195

Tax Payable ** 5,161

Loan Payable - Non Current 27,255

Capital 4,471

Drawings 2,500

Fees Revenue 48,650

Staff Training Expense 850

Rent Expense 2,940

Interest Expense 120

Storage Expense 370

Wages Expense 14,770

111,362 111,362

* PAYG withholding is tax withheld from staff wages and is owed to the government.

** Tax Payable is the GST Clearing account set up for the GST owing. This is a Reckon account and

GST amounts will be taken to Tax Payable as you process transactions with GST. You do not need

to create any other Tax or GST accounts.

Accounts Receivable Details Accounts Payable Details

as at 31 August as at 31 August

Birdo's Builders 8,930 Bowser Accountants 3,550

Pauline's Pictures 2,675 Kamek Catering 1,200

Total 11,605 Total 4,750

Mario and Luigi have provided the following transactions to you, the Graduate Accountant at YoshiSuper Marketing Pty Ltd. For each transaction you need to determine the accounting implicationsfor the month of August 2020. Yoshi Super Marketing uses accrual accounting and prepares adjusting entries and financialstatements on a monthly basis.

You need to decide for each transaction below whether it involves: a normal Reckontransaction, an adjusting entry, or does not require any transaction to be recorded for themonth of August 2020.

List of Transactions

1. 31 August: Received an invoice from Kamek Catering for $4,785 (including GST $435) inrelation to catering expenses incurred during August.

2. 31 August: Agreed to rent a new printer from 1 January 2021 with an annual rent payment of$6,270 (including GST $570) payable when the printer is received.

3. 31 August: Paid the monthly internet expense with cheque number 168 for $1,650 (includingGST $150).

4. 31 August: Prepared a quote for a new customer for marketing services; Quote number Q554for $1,485 (including GST $135).

5. 31 August: Invoiced Pauline's Pictures for marketing services provided; Invoice number R374for $4,565 (including GST $415).

6. 31 August: Received cash of $7,500 as payment on account from Birdo's Builders.

7. 31 August: The manager of Peachy Star Supplies advised that they wish to engage YoshiSuper Marketing for a new marketing campaign. The work is expected to generate $9,350(including GST $850) in revenue. The services will be provided in October 2020.

8. 31 August: Received cash of $3,520 (including GST $320) from a client for marketing servicesprovided. (Ensure the 'Deposit To' shows the 'Cash at Bank' account!).

9. 31 August: Hired a new staff member whose annual salary is $55,000 and who will commencework on 2 November 2020.

10. 31 August: Paid Bowser Accountants $1,550 with cheque number 169.

11. 31 August: Placed an online order for Office Supplies. The supplies and associated invoice for $2,200 (including GST $200) do not arrive until 15 September 2020.

12. As at 31 August $8,500 of marketing services have been performed which relate to a newclient who paid Luigi cash upfront in July. Receipt of the cash was processed in Reckon whenit was received. (GST has already been recorded and can be ignored) (refer Trial Balance).

13. Prepaid 12 months of insurance on 1 August (refer Trial Balance).

14. Wages owing to staff as at 31 August are $5,375.

15. Depreciation on Computer Equipment is calculated using the Straight Line Method over 3years with $0 estimated residual value. Round the amount of depreciation to the nearestwhole dollar. Note that the calculation is for 1 month only (i.e. August depreciation only).