Business Name: Mr. Ernest Cline trading as 'Player1 VR Headsets' Ernest began operations on 1 March 2019 under the business name 'Player1 VR Headsets'. The business retails the top of the line Virtual Reality headsets and obtains these headsets from their only supplier 'IOI Suplies Corporation'. The business also charges additional services fees for customers who need help with installation and troubleshooting. The business is registered for GST which Ernest pays annually. Opening balances as at 01/07/2020 Account name Cash Capital Inventory Accounts payable Office Furniture Accum. Depreciation - Office Furniture Office Supplies GST Paid GST Collected Relevant information: Value $495,278 $670,060 $198,111 $39,622 $54,482 $27,241 $1,265 $40,709 $52,922 Transactions for the month ended 31/07/2020 Date 3/07/2020 4/07/2020 Description The business purchased computer equipment for $6,820 (GST inclusive). Paid a 10% cash deposit and borrowed the remainder from ABC bank. Assume that the loan amount is paid directly to the supplier. Emest needed to buy his friend, Wade, a birthday present. He bought Wade a birthday cake for $165 (GST inclusive) and decided to pay for the cake using the business bank account. 6/07/2020 Business purchased 23 units inventory on credit from usual supplier '101 Supplies Corporation'. 7/07/2020 Emest went out to repair some VR headsets for a client. The job took 6 hours to complete. Ernest invoiced the customer but the customer is yet to settle the full amount. 8/07/2020 Online customer paid $8,008 (GST inclusive) for some VR headsets and picked up the headsets the same day. 12/07/2020 Purchased a delivery van that costs $20,790 (GST inclusive). Paid the full amount in cash. 15/07/2020 Paid $19,886 to 'IOI Supplies Corporation' for amounts owing. 18/07/2020 19/07/2020 Purchased $10,296 of inventory (GST inclusive) from 'IOI Supplies Corporation', with $2,610 paid as a down payment and the remainder on credit. Emest found a new corporate client, 'Artermis Corporation', and sold VR headsets to them for $17,160 (GST inclusive). The new client paid 50% of the amount in cash with the remainder being on credit. 20/07/2020 22/07/2020 26/07/2020 27/07/2020 28/07/2020 31/07/2020 Paid Employee salaries for the month - Gross Amount $8,520; PAYG Tax Deducted $2,130; staff were paid the net amount in cash. Billed client for installation services performed. Total invoice came to $2,992 (GST inclusive). The client has not yet settled their account. The business received a cash payment from 'Artemis Corporation' for purchases made previously. This amount settles all of Artemis's debt to the business. Customer purchased 8 VR headsets and also paid an additional $1,056 (GST inclusive) to get Ernest to help install the VR system. Customer paid the full amount in cash. Emest decided to pay off all debt outstanding to 'IOI Supplies Corporation' including any payables at the beginning of the month. Paid Insurance Corporation Pty Ltd. $1,958 (GST inclusive) for general business insurance. The insurance cover will start from the next day and last until 31 Jul 2021. 3. Additional information Description Selling price per unit (GST inclusive) Cost per unit (GST inclusive) Service Revenue per hour (GST inclusive) Value $572.00 $264.00 $176.00 Chart of accounts Account Name Account No 101 Cash 102 Accounts Receivable 103 Inventory 104 Office Supplies 111 GST Paid 141 Prepaid Insurance 142 Prepaid Rent 143 Prepaid Interest Expense 151 Computer equipment 152 Accum. Depreciation - Computer Equipment Office Furniture 155 156 Accum. Depreciation - Office Furniture 158 Motor Vehicle Accum. Depreciation - Motor Vehicle 159 161 Interest Receivable 201 Accounts Payable 222 GST Collected 240 Interest Due 241 Unearned Revenue 242 Wages Payable 243 Utilities Payable 244 Consulting Fees Payable 251 Bank Loan 252 PAYG Withheld 301 Capital 302 Drawings 401 Sales Revenue 402 Service Revenue 403 Interest Revenue 501 Cost of Good Sold 601 Computer Expense 602 Office Supplies Expense 603 Interest Expense 604 Consulting Expense 605 Insurance Expense 606 Rent Expense 607 Sales Commission Expense 608 Utilities Expense 609 Wage Expense 651 Depreciation Expense - Motor Vehicle 655 Depreciation Expense - Office Furniture 658 Depreciation Expense - Computer Equipment Acc. No. Account 101 Cash 102 Accounts receivable 103 Inventory Unadjusted Trial Balance For Month Ending 31 July 2020 104 Office Supplies 111 GST Paid 141 Prepaid Insurance 142 Prepaid Rent 143 Prepaid Interest Expense 151 Computer equipment 152 Accum. Depreciation - Computer Equipment 155 Office Furniture 156 Accum. Depreciation - Office Furniture 158 Motor Vehicle 159 Accum. Depreciation - Motor Vehicle 161 Interest Receivable 201 Accounts Payable 222 GST Collected 240 241 Interest Due Unearned Revenue 242 Wages Payable 243 Utilities Payable 244 Consulting Fees Payable 251 Bank Loan 252 PAYG Withheld 301 Capital Dr Cr 302 401 Drawings Sales Revenue 402 Service Revenue 403 Interest Revenue 501 Cost of Good Sold 601 Computer Expense 602 Office Supplies Expense 603 Interest Expense 604 Consulting Expense 605 Insurance Expense 606 Rent Expense 607 Sales Commission Expense 608 Utilities Expense 609 Wage Expense 651 Depreciation Expense - Motor Vehicle 655 Depreciation Expense - Office Furniture 658 Depreciation Expense - Computer Equipment TOTAL