Create a cash at bank, accounts receivable, inventory, accounts payable & GST clearing ledger for the following:

Company A is registered for GST , payable quarterly, last paid on the 30^th of June 2019.

The company uses straight line depreciation method for office furniture and computers and reducing balance method for motor vehicles.

They employ two people whom are rostered 7 days and are paid bi-weekly up to and including the day of payment.

1. The company has the following opening balances at the 1 July in the current financial year:

Cash at Bank: $25,654.00

Accounts receivable: $4,852.00

Allowance for doubtful debt: $556.00

Inventory: $10,800.00

Motor vehicle: $26,228.00

Accumulated depreciation motor vehicle: $3,954.00

Accounts payable: $5,232.00

Bank loan owing (due in 20 months): $14,953.00

Office furniture: $12,541.00

Accumulated depreciation office furniture: $2,050.00

Office supplies: $677.00

Share capital: $69,652.00

Retained earnings: balance amount $13,841.00

2. Transactions for the month (all dollar amounts include GST where applicable).

03 July Sales on credit 50 units

04 July Sales on credit 70 units

10 July Sales on credit 60 units

19 July Sales on credit 60 units

21 July Sales on credit 75 units

28 July Sales on credit 60 units

01 July Paid Wages (ignore PAYG tax) $2,127.00

15 July Paid Wages (ignore PAYG tax) $2,033.00

02 July Paid rent for the current month $3,482.00

15 July Paid insurance $1,140.00

20 July Received advertising invoice (due in 30 days) $613.00

29 July Purchased computer on credit $2,238.00

06 July Purchased inventory on credit 20 units at the cost per unit of $31.00

13 July Purchased inventory on credit 20 units at the cost per unit of $30.00

19 July Purchased inventory on credit 25 units at the cost per unit of $28.00

23 July Purchased inventory on credit 25 units at the cost per unit of $24.00

29 July Purchased inventory on credit 30 units at the cost per unit of $23.00

16 July Received payment from accounts receivable $884.00

08 July Received payment from accounts receivable $678.00

21 July Received payment from accounts receivable $965.00

09 July Purchased office supplies on credit $512.00

18 July Paid motor vehicle expenses $181.00

19 July Paid accounts payable $1,110.00

01 July Paid accounts payable $1,465.00

16 July Paid accounts payable $1,764.00

3. Additional information:

Selling Price per unit (GST inclusive) $50.00

Insurance paid for 12 months in total. Insurance commences from the first day of the month in which it is paid.

All asset purchases (including inventory cost per unit) and expenses (except wages) include GST.

Cost of opening inventory items per unit $25.00

Depreciation rate motor vehicle 15%

Residual value motor vehicle: $2,700.00

Depreciation rate office furniture 15%

Residual value office furniture: $400.00

Regardless of purchase date, company policy is to depreciate new assets for 14 days in the month of purchase. Depreciation rate computer 30%

No residual value is expected for computers.

The company counted inventory at the end of the month. They discovered that 4 units were missing and these must be removed from inventory.

Office supplies on hand at end of the month were $4657.00 At the end of the month the company records potential bad debts expense using the percentage of sales method. The business uses 1% of sales to determine estimated bad debts.

Interest owing on the bank loan at the end of the month is $74.00