Based on your advice, Jack and Emily Macarthur have decided to proceed and incorporate a company called Perfect Vision Pty Ltd.

Jack and Emily will be appointed as the two Directors of the company. Jack will be appointed as the company secretary (for ASIC purposes) as well as the public officer (for ATO purposes).

Jack and Emily will each hold 50% of the issued share capital of the company. Only ordinary shares will be issued (no preference shares or A class or B class shares etc). All shares issued in the company will be fully paid.

Jack will sign all of the relevant forms on behalf of the company. The company will adopt the replaceable rules contained in the Corporations Act (2001).

In the next twelve months, it is anticipated that the company will create a website.

The company will be required to register for the GST as its annual turnover is expected to exceed $75,000 per annum. As outlined in the business plan, the company intends using the cash attribution basis for the GST and adopting quarterly GST tax periods.

The company will not be importing any products directly into Australia. Instead, they will acquire frames, spectacles and optical accessories from local Australian wholesalers.

(a) please prepare an opening balance sheet for the company at 15 July 2021 noting how the initial $300,000 cash injection made by Jack and Emily (ie. $150,000 each) should be accounted for (ie. debt or equity) with justification of your rationale. Do not show any budgeted figures as per the business plan in your opening Balance Sheet as these are only estimates and not actual expenditure which has been incurred.