It should be clear.

Price p. Jason and James started M Asian Cuisine on 01"July, the following transactions occurred in July Date Transactions Amounts 1-Jul&borrowed from parents and contributed cash into the business. 20,000 1-Jul Paid for business registration 90 2-Jul Paid for vacuum sealer machine 800 2-Jul Arranged credit card facility with the bank to a limit of; 2.000 2-Jul Paid for bowl sealing machine and shipping fee 3,000 2-Jul Cash purchase of foam bowls Units 132 1,100 $ 0.12 2-Jul Cash purchase of vacuum seal bags Units Pricepu 128 1,600 $ 0.08 3-Jul Credit card purchase of tiny containers (Small plastic for chillies oil) Units Price pu 380 3,800 $ 0.10 3-Jul Received an invoice for website set up costs 1,200 3-Jul Paid rent as required by rental agreement.. 3,960 No of months 3 per month $ 1,320.00 4-Jul First delivery of product to customers, received cash. Units Price p.u 2,160 300 $ 7.20 4-Jul Agreed with an IGA Supermarket to provide a sample batch of product. Units Price p.u 2,880 400 $ 7.20 5.Jul. Received grocery bill meat and other ingredients, supplies) 1,537 6 Jul Sent invoices to friends who are yet to make payments 576 7-ul Paid for petrol, (using James Honda Jazz to pick up purchases and make deliveries 113 9-lul Delivered on 4th of July order above, to IGA Supermarket (paid in full via credit card) 2880 380 10-lul James placed an order for more grocery supplies 11-Jul Pick up and paid for the grocery supplies ordered 315 23-Jul Drawings to jason and James 27-Jul sold product at a local community street festival event along Clayton Road 600 1.152 Price per serve $ 7.20 Serves sold 160 30-lul Recorded depreciation for the month Policies 1 Treat as expense at purchase. 2 Packaging Equipment; Used to vacuum seal the noodles Into the vacuum seal bags (Rg2) 3 Packaging Equipment; Used to leak proof soup into foam bowls (Fig 1). 4 Packaging Supplies, All supplies used to package the product. Indudes Vacuum seal bags and small plastic containers. Treat as ASSET at purchase. (Fig 1, F2, Fig 3) 5 Set Up Costs; Treat as asset at purchase. 6 Rent amount paid is for three months beginning 1st of July: "Prepaid 7 Groceries purchased as required; treat as EXPENSE at purchase Additional Information: Policies and Estimates Vacuum sealer and bowl sealing machines, both deprecated on a straight-line method, with an estimated useful life of six years and five years, and both having NIL salvage value Website is depreciated under straight-line method, three years All grocery supplies are purchased and USED AS as required; no material amounts of grocery supples are stored. FIGURE 1 HOW MALING M FIGURE 2 - FIGURE 3 made terve cus FOUEL WOEN FIGURE 3. Small side serve cups Adjustments Depreciation is calculated on a STRAIGHT LINE method Vacumn Sealer machine; Estimated useful life 6 years with zero residual value. Bowl Sealing machine; Estimated useful life 5 years with zero residual value. Website Set Up Costs, Depreciate over three years A physical count of the Packaging Supplies on hand at the end of the month revealed Units Containers 1,920 Bowls 160 Vacuum seal bags 660 The rent amount paid covers three months, one month of this amount has been USED Electricity and Gas used for the month (Electricity and Gas is paid on a quarterly basis at the end of each quarter) Water used for the month (Water is billed and paid at the end of each quarter $ 323 20 $ SR 80 Adjustments Depreciation is calculated on a STRAIGHT UNE method Vacun Sealer machine; Estimated useful life 6 years with zero residual value. Bowl Sealing machine; Estimated useful life 5 years with zero residual value Website Set Up Costs; Depreciate over three years A physical count of the Packaging Supplies on hand at the end of the month revealed; Units Containers 1,920 Bowls 160 Vacuum seal bags 660 The rent amount paid covers three months, one month of this amount has been USED Electricity and Gas used for the month (Electricity and Gas is paid on a quarterly basis at the end of each quarter) Water used for the month (Water is billed and paid at the end of each quarter) S 323.20 5 58.80 After the discussion, Jason and James agree to purchase the car off Jarnes for business use for $15,000. They approached the CBA bank for a loan. Initially, the bank preapproved to lend them $10,000 as secured loan, 12% interest per year and repayment term is monthly The balance for the cost of the car is coming out of the business account However, the business is new, so CBA only agreed for the loan term to be 1 year, other terms stay the same. Jason and James negotiated to pay monthly interest only for the loan and the balance of the principle will be paid at the end of the term. The interest will be paid in advance starting from 31 July The car is depreciated over 5 years under straight-line method. At the end of five year the residual value is $5,000 Summary: Transactions as per Week 4 and 5, apply 1/S and B/s from week 5 is departure point. Additional Events (End of July) 31-Jul Bank "Preapproved" loan agreed. Purchase price of proposed vehicle: Balance to be paid by business $ 10,000 15,000 5,000 1 1 Loan terms. Loan length (years) Payment frequency Interest rate (annual) Payment structure Advance / Arrears 2 Depreciation Vehicle Cost Residual Useful life fuss) Depto Monthly 1296 Interest only Advance S S 15.000 5,000 5 2.000 from 31 July The car is depreciated over 5 years under straight-line method. At the end of five year the residual value is $5,000 Summary: Transactions as per Week 4 and 5, apply V/S and B/s from week 5 is departure point. Additional Events (End of July, 31-JulBank "Preapproved" loan agreed. 1 Purchase price of proposed vehicles Balance to be paid by business $ $ $ 10,000 15,000 5,000 1 Monthly 1296 1 Loan terms Loan length (years) Payment frequency Interest rate (annual) Payment structure Advance Arrears 2 Depreciation Vehicle Cost Residual Useful life (855) Depto. Interest only Advance $ $ 15,000 5,000 5 2,000 lu OWNER EQUITY PAL Capital Revenue Expenna 20,000 90 ASSETS = LIABILITIES + Date Bowl Cash Vacuum Registrat sealing Containe Website Bowls Vacuum Prepaid Accounts Accounts sealer Ion Fee Loan machine seal bags Rent Rec Payable 1-Jul 20,000 1-Jull 90 2-Jul 800 800 2-ul No transaction 2-Jul 3,000 3.000 2-Jul 132 132 2-Jull 128 128 3-Jul 380 380 3-Jul 1,200 1,200 3-Jul 3,960 3.960 4.Jul 2.160 4-Jul No transaction 5-Jul 1.537 6-Jul 576 7-Jul 113 9-Jul 2.880 10-Jul No transaction 11.Jul 315 23-lul 600 27-Jul 1,152 30-Jul 380 1,200 132 128 800 576 3,117 Total 17,054 3,000 3,117 27,230 2,160 1.537 576 113 2,880 315 600 1.152 3.960 19,400 6,768 2,055 24 113 27 230 A. Prepare necessary adjustments for depreciation expense and other expenses for the month B. Prepare the income statement for JJ Asian Cuisine for the month ending 31 July C. Prepare the balance sheet statement for JJ Asian Cuisine as at 31 July 1. Include the above transactions in the Income Statements and Balance Sheet you completed last week 2. Construct the Cash Flows Statement for the month ended 31 July (include the above transaction) 3. Compare the cash balance at the end of the month and the profit made at the end of the month and fully comment on what you observe Date 90 800 132 128 Jason and James started J Asian Cuisine on 01* July, the following transactions occurred in July: Transactions Amounts 1-Jul 1& 1 borrowed from parents and contributed cash into the business. 20,000 1-Jul Paid for business registration 2.Jul Paid for vacuum sealer machine 2 2-Jul Arranged credit card facility with the bank to a limit of; 2,000 2.Jul Paid for bowl sealing machine and shipping fee a 3,000 2-Jul Cash purchase of foam bowls 4 Units Price pu 1,100 $ 0.12 2-Jul Cash purchase of vacuum seal bags Units Price pu 1,600 $ 0.08 3-Jul Credit card purchase of tiny containers (Small plastic for chillies oil) Units Price p.u 3,800 $ 0.10 3-Jul Received an invoice for website set up costs 1,200 3-Jul Paid rent as required by rental agreement.. 3,960 No of months per month $ 1,320.00 4-Jul First delivery of product to customers; received cash. Units Price p.u 2,160 300 $ 7.20 4-Jul Agreed with an IGA Supermarket to provide a sample batch of product. Units Price pu 2,880 $ 7.20 5-Jul Received grocery bill (meat and other ingredients, supplies) ; 1,537 6-Jul Sent invoices to friends who are yet to make payments 7-Jul Paid for petrol, (using James Honda Jazz to pick up purchases and make deliveries 9-Jul Delivered on 4th of July order above, to IGA Supermarket. (paid in full via credit card) 2,880 380 3 400 576 113 380 10-Jul James placed an order for more grocery supplies 11-Jul Pick up and paid for the grocery supplies ordered 315 600 1,152 23-Jul Drawings to Jason and James 27-Jul Sold product at a local community street festival event along Clayton Road. erves sold 160 Price per serve 7.20 30-Jul Recorded depreciation for the month ? Policies 1 Treat as expense at purchase. 2 Packaging Equipment; Used to vacuum seal the noodles into the vacuum seal bags. (Fig 2) 3 Packaging Equipment; Used to leak proof soup into foam bowls (Fig 1). 4 Packaging Supplies, All supplies used to package the product. Includes vacuum seal bags and small plastic containers. Treat as ASSET at purchase. (Fig 1, Fig 2, Fig 3) 5 Set Up Costs: Treat as asset at purchase. 6 Rent amount paid is for three months beginning 1st of July: "Prepaid" 7 Groceries purchased as required; treat as EXPENSE at purchase Additional information: Policies and Estimates Vacuum sealer and bowl sealing machines, both deprecated on a straight-line method, with an estimated useful life of six years and five years, and both having NIL salvage value. Website is depreciated under straight-line method, three years. All grocery supplies are purchased and USED as required; no material amounts of grocery supplies are stored FIGURE 1 BOW SEALINS FIGURE 2. MACHINE SOAM CUP FIGURE 3. Small side serve cups FIGURE 1. BOWL.SEALING MOINE FIGURE 2. FOAMCUP FIGURE 3. Small side serve cups Adjustments Depreciation is calculated on a STRAIGHT LINE method Vacumn Sealer machine; Estimated useful life 6 years with zero residual value. Bowl Sealing machine; Estimated useful life 5 years with zero residual value. Website Set Up Costs; Depreciate over three years A physical count of the Packaging Supplies on hand at the end of the month revealed; Units Containers 1,920 Bowls 160 Vacuum seal bags 660 The rent amount paid covers three months; one month of this amount has been USED Electricity and Gas used for the month (Electricity and Gas is paid on a quarterly basis at the end of each quarter) Water used for the month (Water is billed and paid at the end of each quarter) $ 323.20 $ 58.80 After the discussion, Jason and James agree to purchase the car off James for business use for $15,000. They approached the CBA bank for a loan. Initially, the bank preapproved to lend them $10,000 as secured loan, 12% interest per year and repayment term is monthly. The balance for the cost of the car is coming out of the business account. However, the business is new, so CBA only agreed for the loan term to be 1 year, other terms stay the same Jason and James negotiated to pay monthly interest only for the loan and the balance of the principle will be paid at the end of the term. The interest will be paid in advance starting from 31 July The car is depreciated over 5 years under straight-line method. At the end of five year the residual value is $5,000 Summary: Transactions as per Week 4 and 5, apply 1/5 and B/s from week 5 is departure point. Additional Events (End of July! 31.Jul Bank "Preapproved" loan agreed. 1 $ 10,000 Purchase price of proposed vehicle $ 15,000 Balance to be paid by business $ 5,000 1 Monthly 12% 1 Loan terms. Loan length (years) Payment frequency Interest rate (annual) Payment structure Advance / Arrears 2 Depreciation Vehicle Cost Residual Useful life (yrs) Dept'n Interest only Advance $ $ 15,000 5,000 5 2,000 $ OWNER EQUITY P/L containe Capital Revenue Expense 20,000 90 ASSETS = LIABILITIES + Date Bowl Vacuum Registrat Cash Containe Website sealing Vacuum Prepaid Accounts Accounts Bowls sealer Loan ion Fee rs Rec seal bags Rent machine Payable 1-Jul 20,000 1-Jul- 90 2.Jul 800 800 2-Jul No transaction 2-Jul 3,000 3,000 2-Jul- 132 132 2-Jul- 128 128 3-Jul 380 380 3-Jul 1,200 1,200 3-Jul 3,960 3,960 4-Jul 2,160 4-Jul No transaction 5-Jul 1,537 6-Jul 576 7-Jull 113 9-Jul 2,880 10-Jul No transaction 11-Jul- 315 23-Jull 600 27-Jul 1,152 30-Jul 2,160 1,537 576 113 2,880 315 600 1,152 . Total 17,054 3,000 800 1,200 380 132 128 3,960 576 3,117 19,400 6,768 3,117 2,055 24,113 27,230 27,230 A. Prepare necessary adjustments for depreciation expense and other expenses for the month B. Prepare the income statement for JJ Asian Cuisine for the month ending 31 July C. Prepare the balance sheet statement for JJ Asian Cuisine as at 31 July 1. Include the above transactions in the Income Statements and Balance Sheet you completed last week 2. Construct the Cash Flows Statement for the month ended 31 July (include the above transaction) 3. Compare the cash balance at the end of the month and the profit made at the end of the month and fully comment on what you observe Units Jason and James started JJ Asian Cuisine on 01st July, the following transactions occurred in July: Date Transactions Amounts 1-Jul J & J borrowed from parents and contributed cash into the business. 20,000 1.Jul Paid for business registration 90 2-Jul Paid for vacuum sealer machine 2 800 2-Jul Arranged credit card facility with the bank to a limit of; 2,000 2-Jul Paid for bowl sealing machine and shipping fee : 3,000 2-Jul Cash purchase of foam bowls 4 Price pu 132 1,100 $ 0.12 2-Jul Cash purchase of vacuum seal bags Units Price pu 128 1,600 $ 0.08 3-Jul Credit card purchase of tiny containers (Small plastic for chillies oil) Units Price p.u 380 3,800 $ 0.10 3-Jul Received an invoice for website set up costs 1,200 3-Jul Paid rent as required by rental agreement. 6 3,960 No of months 3 per month $ 1,320.00 4-Jul First delivery of product to customers, received cash. Units Price p.u 2,160 300 $ 7.20 4-Jul Agreed with an IGA Supermarket to provide a sample batch of product. Units Price p.u 2,880 400 $ 7.20 5-Jul Received grocery bill (meat and other ingredients; supplies) 7 1,537 6-Jul Sent invoices to friends who are yet to make payments 576 7-Jul Paid for petrol, (using James Honda Jazz to pick up purchases and make deliveries 113 9-Jul Delivered on 4th of July order above, to IGA Supermarket. (paid in full via credit card) 2,880 380 10-Jul James placed an order for more grocery supplies 11-Jul Pick up and paid for the grocery supplies ordered 315 23-Jul Drawings to Jason and James 27-Jul Sold product at a local community street festival event along Clayton Road. 600 1,152 Serves sold 160 Price per serve $ 7.20 30-Jul Recorded depreciation for the month ? Policies 1 Treat as expense at purchase. 2 Packaging Equipment; Used to vacuum seal the noodles into the vacuum seal bags. (Fig 2) 3 Packaging Equipment; Used to leak proof soup into foam bowls (Fig 1). 4 Packaging Supplies, All supplies used to package the product. Includes vacuum seal bags and small plastic containers. Treat as ASSET at purchase. (Fig 1. Fig 2, Fig 3) 5 Set Up Costs; Treat as asset at purchase. 6 Rent amount paid is for three months beginning 1st of July: "Prepaid" 7 Groceries purchased as required; treat as EXPENSE at purchase Additional information: Policies and Estimates o Vacuum sealer and bowl sealing machines, both depreciated on a straight-line method, with an estimated useful life of six years and five years, and both having NIL salvage value. o Website is depreciated under straight-line method, three years. All grocery supplies are purchased and USED as required; no material amounts of grocery supplies are stored FIGURE 1. BOWL SEALING MACHINE FIGURE 2. FOAM CUP FIGURE 3. Small side serve cups FIGURE 1 BOW.SEALING MACHINE FIGURE 2. FOAM CUP FIGURE 3. Small side serve cups Adjustments Depreciation is calculated on a STRAIGHT LINE method Vacumn Sealer machine; Estimated useful life 6 years with zero residual value. Bowl Sealing machine; Estimated useful life 5 years with zero residual value. Website Set Up Costs; Depreciate over three years A physical count of the Packaging Supplies on hand at the end of the month revealed; Units Containers 1,920 Bowls 160 Vacuum seal bags 660 The rent amount paid covers three months; one month of this amount has been USED. Electricity and Gas used for the month (Electricity and Gas is paid on a quarterly basis at the end of each quarter) Water used for the month (Water is billed and paid at the end of each quarter) $ 323.20 58.80 After the discussion, Jason and James agree to purchase the car off James for business use for $15,000. They approached the CBA bank for a loan. Initially, the bank preapproved to lend them $10,000 as secured loan, 12% interest per year and repayment term is monthly. The balance for the cost of the car is coming out of the business account. However, the business is new, so CBA only agreed for the loan term to be 1 year, other terms stay the same. Jason and James negotiated to pay monthly interest only for the loan and the balance of the principle will be paid at the end of the term. The interest will be paid in advance starting from 31 July. The car is depreciated over 5 years under straight-line method. At the end of five year the residual value is $5,000 Summary: Transactions as per Week 4 and 5, apply 1/S and B/s from week 5 is departure point. Additional Events (End of July). 31-Jul Bank "Preapproved" loan agreed. 1 $ 10,000 Purchase price of proposed vehicle 2 $ 15,000 Balance to be paid by business $ 5,000 1 Loan terms. Loan length (years) Payment frequency Interest rate (annual) Payment structure Advance / Arrears 2 Depreciation Vehicle Cost Residual Useful life (yrs) Dept'n Monthly 12% Interest only Advance $ $ 15,000 5,000 5 2,000 $ Price p. Jason and James started M Asian Cuisine on 01"July, the following transactions occurred in July Date Transactions Amounts 1-Jul&borrowed from parents and contributed cash into the business. 20,000 1-Jul Paid for business registration 90 2-Jul Paid for vacuum sealer machine 800 2-Jul Arranged credit card facility with the bank to a limit of; 2.000 2-Jul Paid for bowl sealing machine and shipping fee 3,000 2-Jul Cash purchase of foam bowls Units 132 1,100 $ 0.12 2-Jul Cash purchase of vacuum seal bags Units Pricepu 128 1,600 $ 0.08 3-Jul Credit card purchase of tiny containers (Small plastic for chillies oil) Units Price pu 380 3,800 $ 0.10 3-Jul Received an invoice for website set up costs 1,200 3-Jul Paid rent as required by rental agreement.. 3,960 No of months 3 per month $ 1,320.00 4-Jul First delivery of product to customers, received cash. Units Price p.u 2,160 300 $ 7.20 4-Jul Agreed with an IGA Supermarket to provide a sample batch of product. Units Price p.u 2,880 400 $ 7.20 5.Jul. Received grocery bill meat and other ingredients, supplies) 1,537 6 Jul Sent invoices to friends who are yet to make payments 576 7-ul Paid for petrol, (using James Honda Jazz to pick up purchases and make deliveries 113 9-lul Delivered on 4th of July order above, to IGA Supermarket (paid in full via credit card) 2880 380 10-lul James placed an order for more grocery supplies 11-Jul Pick up and paid for the grocery supplies ordered 315 23-Jul Drawings to jason and James 27-Jul sold product at a local community street festival event along Clayton Road 600 1.152 Price per serve $ 7.20 Serves sold 160 30-lul Recorded depreciation for the month Policies 1 Treat as expense at purchase. 2 Packaging Equipment; Used to vacuum seal the noodles Into the vacuum seal bags (Rg2) 3 Packaging Equipment; Used to leak proof soup into foam bowls (Fig 1). 4 Packaging Supplies, All supplies used to package the product. Indudes Vacuum seal bags and small plastic containers. Treat as ASSET at purchase. (Fig 1, F2, Fig 3) 5 Set Up Costs; Treat as asset at purchase. 6 Rent amount paid is for three months beginning 1st of July: "Prepaid 7 Groceries purchased as required; treat as EXPENSE at purchase Additional Information: Policies and Estimates Vacuum sealer and bowl sealing machines, both deprecated on a straight-line method, with an estimated useful life of six years and five years, and both having NIL salvage value Website is depreciated under straight-line method, three years All grocery supplies are purchased and USED AS as required; no material amounts of grocery supples are stored. FIGURE 1 HOW MALING M FIGURE 2 - FIGURE 3 made terve cus FOUEL WOEN FIGURE 3. Small side serve cups Adjustments Depreciation is calculated on a STRAIGHT LINE method Vacumn Sealer machine; Estimated useful life 6 years with zero residual value. Bowl Sealing machine; Estimated useful life 5 years with zero residual value. Website Set Up Costs, Depreciate over three years A physical count of the Packaging Supplies on hand at the end of the month revealed Units Containers 1,920 Bowls 160 Vacuum seal bags 660 The rent amount paid covers three months, one month of this amount has been USED Electricity and Gas used for the month (Electricity and Gas is paid on a quarterly basis at the end of each quarter) Water used for the month (Water is billed and paid at the end of each quarter $ 323 20 $ SR 80 Adjustments Depreciation is calculated on a STRAIGHT UNE method Vacun Sealer machine; Estimated useful life 6 years with zero residual value. Bowl Sealing machine; Estimated useful life 5 years with zero residual value Website Set Up Costs; Depreciate over three years A physical count of the Packaging Supplies on hand at the end of the month revealed; Units Containers 1,920 Bowls 160 Vacuum seal bags 660 The rent amount paid covers three months, one month of this amount has been USED Electricity and Gas used for the month (Electricity and Gas is paid on a quarterly basis at the end of each quarter) Water used for the month (Water is billed and paid at the end of each quarter) S 323.20 5 58.80 After the discussion, Jason and James agree to purchase the car off Jarnes for business use for $15,000. They approached the CBA bank for a loan. Initially, the bank preapproved to lend them $10,000 as secured loan, 12% interest per year and repayment term is monthly The balance for the cost of the car is coming out of the business account However, the business is new, so CBA only agreed for the loan term to be 1 year, other terms stay the same. Jason and James negotiated to pay monthly interest only for the loan and the balance of the principle will be paid at the end of the term. The interest will be paid in advance starting from 31 July The car is depreciated over 5 years under straight-line method. At the end of five year the residual value is $5,000 Summary: Transactions as per Week 4 and 5, apply 1/S and B/s from week 5 is departure point. Additional Events (End of July) 31-Jul Bank "Preapproved" loan agreed. Purchase price of proposed vehicle: Balance to be paid by business $ 10,000 15,000 5,000 1 1 Loan terms. Loan length (years) Payment frequency Interest rate (annual) Payment structure Advance / Arrears 2 Depreciation Vehicle Cost Residual Useful life fuss) Depto Monthly 1296 Interest only Advance S S 15.000 5,000 5 2.000 from 31 July The car is depreciated over 5 years under straight-line method. At the end of five year the residual value is $5,000 Summary: Transactions as per Week 4 and 5, apply V/S and B/s from week 5 is departure point. Additional Events (End of July, 31-JulBank "Preapproved" loan agreed. 1 Purchase price of proposed vehicles Balance to be paid by business $ $ $ 10,000 15,000 5,000 1 Monthly 1296 1 Loan terms Loan length (years) Payment frequency Interest rate (annual) Payment structure Advance Arrears 2 Depreciation Vehicle Cost Residual Useful life (855) Depto. Interest only Advance $ $ 15,000 5,000 5 2,000 lu OWNER EQUITY PAL Capital Revenue Expenna 20,000 90 ASSETS = LIABILITIES + Date Bowl Cash Vacuum Registrat sealing Containe Website Bowls Vacuum Prepaid Accounts Accounts sealer Ion Fee Loan machine seal bags Rent Rec Payable 1-Jul 20,000 1-Jull 90 2-Jul 800 800 2-ul No transaction 2-Jul 3,000 3.000 2-Jul 132 132 2-Jull 128 128 3-Jul 380 380 3-Jul 1,200 1,200 3-Jul 3,960 3.960 4.Jul 2.160 4-Jul No transaction 5-Jul 1.537 6-Jul 576 7-Jul 113 9-Jul 2.880 10-Jul No transaction 11.Jul 315 23-lul 600 27-Jul 1,152 30-Jul 380 1,200 132 128 800 576 3,117 Total 17,054 3,000 3,117 27,230 2,160 1.537 576 113 2,880 315 600 1.152 3.960 19,400 6,768 2,055 24 113 27 230 A. Prepare necessary adjustments for depreciation expense and other expenses for the month B. Prepare the income statement for JJ Asian Cuisine for the month ending 31 July C. Prepare the balance sheet statement for JJ Asian Cuisine as at 31 July 1. Include the above transactions in the Income Statements and Balance Sheet you completed last week 2. Construct the Cash Flows Statement for the month ended 31 July (include the above transaction) 3. Compare the cash balance at the end of the month and the profit made at the end of the month and fully comment on what you observe Date 90 800 132 128 Jason and James started J Asian Cuisine on 01* July, the following transactions occurred in July: Transactions Amounts 1-Jul 1& 1 borrowed from parents and contributed cash into the business. 20,000 1-Jul Paid for business registration 2.Jul Paid for vacuum sealer machine 2 2-Jul Arranged credit card facility with the bank to a limit of; 2,000 2.Jul Paid for bowl sealing machine and shipping fee a 3,000 2-Jul Cash purchase of foam bowls 4 Units Price pu 1,100 $ 0.12 2-Jul Cash purchase of vacuum seal bags Units Price pu 1,600 $ 0.08 3-Jul Credit card purchase of tiny containers (Small plastic for chillies oil) Units Price p.u 3,800 $ 0.10 3-Jul Received an invoice for website set up costs 1,200 3-Jul Paid rent as required by rental agreement.. 3,960 No of months per month $ 1,320.00 4-Jul First delivery of product to customers; received cash. Units Price p.u 2,160 300 $ 7.20 4-Jul Agreed with an IGA Supermarket to provide a sample batch of product. Units Price pu 2,880 $ 7.20 5-Jul Received grocery bill (meat and other ingredients, supplies) ; 1,537 6-Jul Sent invoices to friends who are yet to make payments 7-Jul Paid for petrol, (using James Honda Jazz to pick up purchases and make deliveries 9-Jul Delivered on 4th of July order above, to IGA Supermarket. (paid in full via credit card) 2,880 380 3 400 576 113 380 10-Jul James placed an order for more grocery supplies 11-Jul Pick up and paid for the grocery supplies ordered 315 600 1,152 23-Jul Drawings to Jason and James 27-Jul Sold product at a local community street festival event along Clayton Road. erves sold 160 Price per serve 7.20 30-Jul Recorded depreciation for the month ? Policies 1 Treat as expense at purchase. 2 Packaging Equipment; Used to vacuum seal the noodles into the vacuum seal bags. (Fig 2) 3 Packaging Equipment; Used to leak proof soup into foam bowls (Fig 1). 4 Packaging Supplies, All supplies used to package the product. Includes vacuum seal bags and small plastic containers. Treat as ASSET at purchase. (Fig 1, Fig 2, Fig 3) 5 Set Up Costs: Treat as asset at purchase. 6 Rent amount paid is for three months beginning 1st of July: "Prepaid" 7 Groceries purchased as required; treat as EXPENSE at purchase Additional information: Policies and Estimates Vacuum sealer and bowl sealing machines, both deprecated on a straight-line method, with an estimated useful life of six years and five years, and both having NIL salvage value. Website is depreciated under straight-line method, three years. All grocery supplies are purchased and USED as required; no material amounts of grocery supplies are stored FIGURE 1 BOW SEALINS FIGURE 2. MACHINE SOAM CUP FIGURE 3. Small side serve cups FIGURE 1. BOWL.SEALING MOINE FIGURE 2. FOAMCUP FIGURE 3. Small side serve cups Adjustments Depreciation is calculated on a STRAIGHT LINE method Vacumn Sealer machine; Estimated useful life 6 years with zero residual value. Bowl Sealing machine; Estimated useful life 5 years with zero residual value. Website Set Up Costs; Depreciate over three years A physical count of the Packaging Supplies on hand at the end of the month revealed; Units Containers 1,920 Bowls 160 Vacuum seal bags 660 The rent amount paid covers three months; one month of this amount has been USED Electricity and Gas used for the month (Electricity and Gas is paid on a quarterly basis at the end of each quarter) Water used for the month (Water is billed and paid at the end of each quarter) $ 323.20 $ 58.80 After the discussion, Jason and James agree to purchase the car off James for business use for $15,000. They approached the CBA bank for a loan. Initially, the bank preapproved to lend them $10,000 as secured loan, 12% interest per year and repayment term is monthly. The balance for the cost of the car is coming out of the business account. However, the business is new, so CBA only agreed for the loan term to be 1 year, other terms stay the same Jason and James negotiated to pay monthly interest only for the loan and the balance of the principle will be paid at the end of the term. The interest will be paid in advance starting from 31 July The car is depreciated over 5 years under straight-line method. At the end of five year the residual value is $5,000 Summary: Transactions as per Week 4 and 5, apply 1/5 and B/s from week 5 is departure point. Additional Events (End of July! 31.Jul Bank "Preapproved" loan agreed. 1 $ 10,000 Purchase price of proposed vehicle $ 15,000 Balance to be paid by business $ 5,000 1 Monthly 12% 1 Loan terms. Loan length (years) Payment frequency Interest rate (annual) Payment structure Advance / Arrears 2 Depreciation Vehicle Cost Residual Useful life (yrs) Dept'n Interest only Advance $ $ 15,000 5,000 5 2,000 $ OWNER EQUITY P/L containe Capital Revenue Expense 20,000 90 ASSETS = LIABILITIES + Date Bowl Vacuum Registrat Cash Containe Website sealing Vacuum Prepaid Accounts Accounts Bowls sealer Loan ion Fee rs Rec seal bags Rent machine Payable 1-Jul 20,000 1-Jul- 90 2.Jul 800 800 2-Jul No transaction 2-Jul 3,000 3,000 2-Jul- 132 132 2-Jul- 128 128 3-Jul 380 380 3-Jul 1,200 1,200 3-Jul 3,960 3,960 4-Jul 2,160 4-Jul No transaction 5-Jul 1,537 6-Jul 576 7-Jull 113 9-Jul 2,880 10-Jul No transaction 11-Jul- 315 23-Jull 600 27-Jul 1,152 30-Jul 2,160 1,537 576 113 2,880 315 600 1,152 . Total 17,054 3,000 800 1,200 380 132 128 3,960 576 3,117 19,400 6,768 3,117 2,055 24,113 27,230 27,230 A. Prepare necessary adjustments for depreciation expense and other expenses for the month B. Prepare the income statement for JJ Asian Cuisine for the month ending 31 July C. Prepare the balance sheet statement for JJ Asian Cuisine as at 31 July 1. Include the above transactions in the Income Statements and Balance Sheet you completed last week 2. Construct the Cash Flows Statement for the month ended 31 July (include the above transaction) 3. Compare the cash balance at the end of the month and the profit made at the end of the month and fully comment on what you observe Units Jason and James started JJ Asian Cuisine on 01st July, the following transactions occurred in July: Date Transactions Amounts 1-Jul J & J borrowed from parents and contributed cash into the business. 20,000 1.Jul Paid for business registration 90 2-Jul Paid for vacuum sealer machine 2 800 2-Jul Arranged credit card facility with the bank to a limit of; 2,000 2-Jul Paid for bowl sealing machine and shipping fee : 3,000 2-Jul Cash purchase of foam bowls 4 Price pu 132 1,100 $ 0.12 2-Jul Cash purchase of vacuum seal bags Units Price pu 128 1,600 $ 0.08 3-Jul Credit card purchase of tiny containers (Small plastic for chillies oil) Units Price p.u 380 3,800 $ 0.10 3-Jul Received an invoice for website set up costs 1,200 3-Jul Paid rent as required by rental agreement. 6 3,960 No of months 3 per month $ 1,320.00 4-Jul First delivery of product to customers, received cash. Units Price p.u 2,160 300 $ 7.20 4-Jul Agreed with an IGA Supermarket to provide a sample batch of product. Units Price p.u 2,880 400 $ 7.20 5-Jul Received grocery bill (meat and other ingredients; supplies) 7 1,537 6-Jul Sent invoices to friends who are yet to make payments 576 7-Jul Paid for petrol, (using James Honda Jazz to pick up purchases and make deliveries 113 9-Jul Delivered on 4th of July order above, to IGA Supermarket. (paid in full via credit card) 2,880 380 10-Jul James placed an order for more grocery supplies 11-Jul Pick up and paid for the grocery supplies ordered 315 23-Jul Drawings to Jason and James 27-Jul Sold product at a local community street festival event along Clayton Road. 600 1,152 Serves sold 160 Price per serve $ 7.20 30-Jul Recorded depreciation for the month ? Policies 1 Treat as expense at purchase. 2 Packaging Equipment; Used to vacuum seal the noodles into the vacuum seal bags. (Fig 2) 3 Packaging Equipment; Used to leak proof soup into foam bowls (Fig 1). 4 Packaging Supplies, All supplies used to package the product. Includes vacuum seal bags and small plastic containers. Treat as ASSET at purchase. (Fig 1. Fig 2, Fig 3) 5 Set Up Costs; Treat as asset at purchase. 6 Rent amount paid is for three months beginning 1st of July: "Prepaid" 7 Groceries purchased as required; treat as EXPENSE at purchase Additional information: Policies and Estimates o Vacuum sealer and bowl sealing machines, both depreciated on a straight-line method, with an estimated useful life of six years and five years, and both having NIL salvage value. o Website is depreciated under straight-line method, three years. All grocery supplies are purchased and USED as required; no material amounts of grocery supplies are stored FIGURE 1. BOWL SEALING MACHINE FIGURE 2. FOAM CUP FIGURE 3. Small side serve cups FIGURE 1 BOW.SEALING MACHINE FIGURE 2. FOAM CUP FIGURE 3. Small side serve cups Adjustments Depreciation is calculated on a STRAIGHT LINE method Vacumn Sealer machine; Estimated useful life 6 years with zero residual value. Bowl Sealing machine; Estimated useful life 5 years with zero residual value. Website Set Up Costs; Depreciate over three years A physical count of the Packaging Supplies on hand at the end of the month revealed; Units Containers 1,920 Bowls 160 Vacuum seal bags 660 The rent amount paid covers three months; one month of this amount has been USED. Electricity and Gas used for the month (Electricity and Gas is paid on a quarterly basis at the end of each quarter) Water used for the month (Water is billed and paid at the end of each quarter) $ 323.20 58.80 After the discussion, Jason and James agree to purchase the car off James for business use for $15,000. They approached the CBA bank for a loan. Initially, the bank preapproved to lend them $10,000 as secured loan, 12% interest per year and repayment term is monthly. The balance for the cost of the car is coming out of the business account. However, the business is new, so CBA only agreed for the loan term to be 1 year, other terms stay the same. Jason and James negotiated to pay monthly interest only for the loan and the balance of the principle will be paid at the end of the term. The interest will be paid in advance starting from 31 July. The car is depreciated over 5 years under straight-line method. At the end of five year the residual value is $5,000 Summary: Transactions as per Week 4 and 5, apply 1/S and B/s from week 5 is departure point. Additional Events (End of July). 31-Jul Bank "Preapproved" loan agreed. 1 $ 10,000 Purchase price of proposed vehicle 2 $ 15,000 Balance to be paid by business $ 5,000 1 Loan terms. Loan length (years) Payment frequency Interest rate (annual) Payment structure Advance / Arrears 2 Depreciation Vehicle Cost Residual Useful life (yrs) Dept'n Monthly 12% Interest only Advance $ $ 15,000 5,000 5 2,000 $