Cats R Us Pty Ltd have operated a cat breeding business from a rural property located outside the Brisbane metropolitan area for 3 years. The business has experienced growth in sales of cats/kittens in part due to their social media presence and well developed website. As part of recent expansion plans, the company has acquired an adjacent vacant block of land and have constructed a cat motel on the property. The expansion has been financed from retained profits and a short-term bank loan repayable within 12 months. The trial balance and results for the first month of the new financial year ended 31 July 2021 have been finalized. The trial balance at the end of the month is presented as follows: Dr Cr 8,000 1,375 470 44,000 12,000 385 Cats R Us Pty Ltd Trial Balance As at 31 July 2021 Account no. Account 100 Cash at bank 110 Accounts receivable 115 Supplies - cat food and medicines 150 Land 155 Buildings 160 Plant and equipment 200 Accounts payable 210 Short-term loan 310 Share capital 320 Retained earnings 410 Cat and kitten sales 420 Cat hotel services 500 Advertising expenses 510 Bank charges 520 Electricity charges 530 Insurance expense 540 Food and medicines 550 Veterinary services 10,000 53,495 2,750 56 15 94 125 235 260 66,630 66,630 Listed below are the transactions which have been entered into by the company during the month ended 31 August 2021. These transactions have been extracted from sales and suppliers invoices and records of cash receipts and payments: August 1 Received the short-term bank loan of $19,000 from Banking Is Us Pty Ltd. Repayments will commence next month. 2 Monthly insurance expense was directly debited from the bank account. 5 Payment was made to Scotty Constructions Pty Ltd in the amount of $23,000 for the new cat hotel. 8 Received all of the outstanding accounts receivable from the previous month. 13 Paid last month's electricity bill of $94 by bank transfer. The bill had been recorded in accounts payable. 15 Paid $267 by bank transfer, to Retail Services for food and medicines expected to be used in the month. 16 Sold 2 pure bred Siamese kittens to a family for cash of $800 with payment received by direct deposit 20 Invoiced We Are Pets Ltd $1,400 for kittens supplied for sale in their retail store. 22 Received an invoice in the amount of $95 for electricity provided during the month. 25 Received the monthly invoice of $40 for digital advertising with Google which is paid by direct debit on date of invoice. 28 Received and banked cash of $1,365 for the cash sale of an Abyssinian kitten. 30 Received an invoice in the amount of $255 for Veterinary services provided during the month. Bank statement for Cats R Us Pty Ltd for the month ended 31 August 2021 Issued by Banking Is Us Ltd Statement Number 113 Account Number 145789 22887 Closing Balance 7,000.00 Date Payments 125.00 23,000.00 1 Aug 2 Aug 5 Aug 8 Aug 13 Aug 15 Aug 16 Aug 25 Aug Description Opening balance Loan provided by Banking Is Us Pty Ltd Direct debit - Alpha Insurance Transfer to Scotty Constructions Pty Ltd Deposit - We are Pets Ltd Transfer to Electricity Provider Transfer to Retail Services Cash deposit Direct debit - Google Advertising Services Cash deposit Statement and bank charges Receipts Balance 8,000.00 19,000.00 27,000.00 26,875.00 3,875.00 1,375.00 5,250.00 5,156.00 4,889.00 800.00 5,689.00 5,649.00 94.00 267.00 40.00 28 Aug 31 Aug 1,365.00 7,014.00 7,000.00 14.00 1) Prepare the journals for the August transactions. Narrations are not required and no depreciation adjustment or other adjusting entries are necessary. No new general ledger accounts are required to be established or added to the chart of accounts. (13 marks) 2) Post all the journals from (1) above to the general ledger and prepare a trial balance as at 31 August 2021. (20 marks) 3) Prepare a statement of Profit or Loss for Cats R Us Pty Ltd for the two months ended 31 August 2021. (4 marks) 4) Prepare a classified Statement of Financial Position for Cats R Us Pty Ltd as at 31 August 2021. (8 marks)
