MAA103 Assignment 1: Double-Entry Accounting

Student ID Student Username

222617409

s222617409 @deakin.edu.au

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.

Relevant information:

Opening balances as at 01/07/2022

Account name

Cash

Capital

Inventory

Accounts payable

Office Furniture

Accum. Depreciation - Office Furniture

Office Supplies

GST Paid

GST Collected

Value

$495,278

$670,060

$198,111

$39,622

$54,482

$27,241

$1,265

$40,709

$52,922

Transactions for the month ended 31/07/2022

Date

3/07/2022

Description

The business purchased computer equipment for $13,640 (GST inclusive). Paid a 20% cash deposit and borrowed the remainder from ABC bank. Assume that the loan amount is paid directly to the supplier.

4/07/2022

Ernest 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.

6/07/2022

Business purchased 37 units inventory on credit from usual supplier 'IOI Supplies Corporation'.

7/07/2022

8/07/2022

Ernest 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.

Online customer paid $11,880 (GST inclusive) for some VR headsets and picked up the headsets the same day.

12/07/2022

15/07/2022

Purchased a delivery van that costs $24,255 (GST inclusive). Paid the full amount in cash.

Paid $19,886 to 'IOI Supplies Corporation' for amounts owing.

18/07/2022

19/07/2022

Purchased $15,675 of inventory (GST inclusive) from 'IOI Supplies Corporation', with $3,696 paid as a down payment and the remainder on credit.

Ernest found a new corporate client, 'Artermis Corporation', and sold VR headsets to them for $15,444 (GST inclusive). The new client paid 50% of the amount in cash with the remainder being on credit.

20/07/2022

Paid Employee salaries for the month Gross Amount $8,920; PAYG Tax Deducted $2,230; staff were paid the net amount in cash.

22/07/2022

Billed client for installation services performed. Total invoice came to $4,180 (GST inclusive). The client has not yet settled their account.

26/07/2022

27/07/2022

The business received a cash payment from 'Artemis Corporation' for purchases made previously. This amount settled all of Artemis's debt to the business.

Customer purchased 10 VR headsets and also paid an additional $2,090 (GST inclusive) to get Ernest to help install the VR system. Customer paid the full amount in cash.

28/07/2022

31/07/2022

Ernest 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. $1,837 (GST inclusive) for general business insurance. The insurance cover will start from the next day and last until 31 Jul 2023.

3. Additional information

Description Value

Selling price per unit (GST inclusive) Cost per unit (GST inclusive) Service Revenue per hour (GST inclusive)

$594.00 $275.00 $209.00