Brain and smart Ltd completed the following transaction during 2019 and 2020. The financial year for the company ends on 30 June each year.

Required:

Prepare journal entries as necessary for each of the transaction below including any adjusting entry as 30th june 2020.

2020

1 Jan : Purchase new land & Building for $5,250,000 from custom credit Ltd. The value of Land was 40%. Financing arrangement include payment of an initial deposit of 10% of the purchase price and the signing of a 7.5 % p.a. Mortgage. At 30th june the quarterly payment, April to june of $ 168, 962 ( including interest of $ 13, 126), remains unpaid.

Record the asset purchase ( Ignore GST) , and any adjusting entry on 30th june.

23 Apr : The company paid warranty cost of $ 450 in cash to make good warranty condition on product sold in 2017. The company has a provision for Warranty cost account.

6 May: Issue a 7% 60 day promissory note to carbon Ltd in settlement of an account for $ 14000 for good purchased for September last year.

26 June : Purchased $ 14300 worth of inventory ( GST included ) from AZD ltd on credit term of 2/10, n/30 ( record GST).

30th June: The GST control account of the company has GST paid on $ 4200 and GST collected of $ 5400 during the period April to June . Make the entry for the settlement of GST with Australian tax office.