Michael Brown decided to leave his employment and start his own business in providing catering supplies to food outlets. He had worked in the industry for a number of years and had established a wide range of contacts both as suppliers of catering needs and customers who required catering supplies. He plans to start small and only trade in a few products at first. THE BUSINESS IS NOT REGISTERED FOR GST, accordingly, there is no requirement to account for or include GST in any transaction.
The following pages contain the source documents for Michael's first month of business. Your task is to prepare:
1. General journal entries for the relevant transactions (Narrations are not required)
2. Ledger entries for the transactions (Record inventory items in separate accounts)
3. Prepare a Trial Balance
4. A Statement of Financial Performance for the month of January
5. A Statement of Financial Position as at 31 January 2018
Transactions are as followed.
- Date: 1 January 2018 , this is certify that Michael Bruce Brown is the holder of 10,000 ordinary shares in MBB Catering Supplies Pty. Ltd on payment of $1 per share. Amount paid: $10,000.
- Date:1 January 2018, Michael Brown's Note:
- Michael Brown donated his station wagon to the firm. Original cost: $15,000. Current market value: $3,000 in exchange for ordinary shares @$1 per share
- Arranged an interest only loan with Grand Bank for $8,000; interest at 5% p.a.; payable quarterly. Principal amount to be repaid 31 December 2021. Loan amount deposited in account today.
- Keep freight paid to trade creditors in a separate freight account as I will make allowance for it in the price I charge customers.
- Depreciate the vehicle over 5 years with no value at the end
MBB antenna suppues Tax Invoice ABN 42 088 423 290 Invoice No.: 0003 351 Boutique Blvd Date: 21/01/2018 Templestowe, VIC 3107 Terms: 5%10, N30 Phone: (03) 9850 0351 PO #: 6487 Sold To: . . The T1k1 Room 18 Grand Blvd Montrnorency, VIC 3094 mamm $1940.00 $1940.00 Sale Amount: $1940.00 Freight: 0.00 Total Amount: $1940.00 Paid Today: $0.00 Balance Due: $1940.00 GRAND BANK - Receipt 21 January 2018 5.34 pm Receipt number 4564 Amount $3120.00 From MBB Catering Supplies 07 4567 3482 9856 Biller 2989 Code: Ref: 00579246 Annual insurance 10 LUCKY YOU'RE WITH AAMI Tax Invoice AAMI Business Insurance Invoice No.: 00579246 GPO BOX 2470 Date: 01/01/2018 Adelaide, South Australia 5001 Due Date: 31/01/2018 ABN: 48 005 297 807 Biller Code: 3579 To: . . MBB Catermg Suppl1es PAID 351 Boutique Blvd 21/01/18 Templestowe, VIC 3107 EFT 4564 Description Amgunt Insurance for Business Operations - premium for 01/01/2018 to 31/12/2018 Subtotal Total 3120.00 3120.00 3120.00 Tax Invoice IIi-Iloau Ileal Estate 799 High Street KEW 3101 Invoice No.: 089539 Date: 01/01/2018 Due Date: 31/01/2018 ABN: 38 007 498 432 Biller Code: 4382 To: . , MBB Caterlng Supphes PAID 351 Boutique Blvd 21/01/18 Templestowe, VIC 3107 EFT 4565 Description Amgunt Rent due for hirin of remises om 01/01/2018 to 30/06/2018 Total 3,120.00 3,120.00 Tax Invoice KitchenAid ABN 95 000 029 729 Invoice No.: 3403 6-8 Billbrooke Close Date: 03/01/2018 Cameron Park, NSW 2286 Terms: N30 Phone: 02 4902 6500 PO #: 1008 Sold To: . , MBB Catermg Suppl1es 351 Boutique Blvd Templestowe, VIC 3107 QTY ' Description Unit Price Amount $ $ 6 | HD Mixer 650.00 3900.00 Subtotal 3 900 .00 Total $3 900.00 Tax Invoice ROBAND\". ABN 35 945 022 518 Invoice No.: 67456 1 Inman Rd Date: 06/01/2018 Cromer, NSW 2099 Terms: N30 Phone: +61 2 9971 1788 Fax: +61 2 9971 1336 Sold To: MBB Catering Supplies 351 Boutique Blvd Templestowe, VIC 3107 QTY Description Unit Price Amount $ $ Ice cream machine 930.00 4650.00 Freight 200.00 Subtotal 4850.00 Total 4850.00 OFFICE MEMORANDUM Date ; 06/01/18 To: Michael Brown SUBJECT: 1. Found a faulty HD mixer. Phoned KitchenAid about the quality problem, and both sides agreed on us returning the goods and KitchenAid issuing a credit note. Signed: Michael Brown Credit Note 0 O KitchenAld ABN 95 000 029 729 Credit Note No.: 1222 6-8 Billbrooke Close Date: 06/01/2018 Cameron Park, NSW 2286 Phone: 02 4902 6500 Sold To: . . MBB Caterlng Suppl1es 351 Boutique Blvd Templestowe, VIC 3107 $ $ 650.00 650.00 Subtotal 650.00 Total 650.00 Tax Invoice PW Awfu- RWy 1001 Doncaster Road Invoice No.2 3403 Doncaster, VIC 3108 Date: 12/01/2018 Phone: (03) 9848 2222 ABN 84 002 168 032 Biller Code: 5167 To: MBB Catering Supplies Descri o tion Amount Service delivery vehicle Parts $580.00 Labour $300.00 - $880.00 HEB CATERING SUPPUES Tax Invoice ABN 42 088 423 290 Invoice No.: 0001 351 Boutique Blvd Date: 14/01/2018 Templestowe, VIC 3107 Terms: COD Phone 03 98500351 PC)#: EFT Sold To Cash Sales 0 TY Descri I tion Price Amount _ _ - Sale Amount: $3040.00 Freight: $0.00 Total Amount: $3040.00 Paid Today: $3040.00 Balance Due: $0.00 GRAND BANK - Receipt 14 January 2018 4.22.pm Receipt number 4561 Amount $880.00 From MBB Catering Supplies 07 4567 3482 9856 To Doncaster Auto Repairs 313-140 Mecu Limited 5423 1 7 89 #3403 GRAND BANK - Receipt Receipt number 14 January 2018 4.28.pm 4562 Amount $4850.00 From MBB Catering Supplies 07 4567 3482 9856 To Roband P/L Biller 5248 Code: Ref: 9301 Inv #67456 MEBCATERINGSUPPLIES Tax 111W\" ABN 42 088 423 290 Invoice No.: 0002 351 Boutique Blvd Date: 15/01/2018 Templestowe, VIC 3107 Teims: 5%10, N30 Phone: (03) 9850 0351 PO #: EFT Sold To: . Orgamx Caf and Food Store 42 James Street Templestowe, VIC 3106 QTY Descri tion Price Amount 1 HD Mixer $1100.00 $1100.00 Sale Amount: $1 100.00 Freight: $0.00 Total Amount: $1100.00 Paid Today: 0.00 Balance Due: $1100.00 OFFICE MEMORANDUM Date: 16/01 / 1 8 To: Michael Brown SUBJECT: 1. Organix Caf returned an HD mixer after a trial, as per condition of sale. Signed: Michael Brown mammucsuppues Cred\" N0\" ABN 42 088 423 290 Credit Note No.: 0001 351 Boutique Blvd Date: 16/01/2018 Templestowe, VIC 3107 Phone: (03) 9850 0351 Sold To: _ Organlx Cafe Return of Sale 42 James Street Templestowe, VIC 3106 Price Amount $1100.00 $1100.00 | Sale Amount: $1 100.00 Freight: $0.00 Total Amount: $1 100.00 Description Tax Invoice ABN 45 689 643 101 Invoice No.: 0036897 Unit 2 / 7 Minnie Street Invoice Date: 18/01/2018 Belmore, NSW 2192 Terms: 4/ 10, N30 PO #: 2023 Sold To: MBB Catering Supplies 351 Boutique Blvd Tem lestowe, VIC 3107 QTY Item Description Unit Price Amount $ $ 4 Double-sided Flat Back Gondola Shelving 205,00 820,00 4 Single-sided Flat Back Gondola Shelving 105_00 420.00 4 Single-sided Peg Board Gondola Shelving 9500 380,00 1 Florence Counter Display 745.00 745.00 Frei ht 35.00 Subtotal 2400.00 Total 2400.00 BSB: 454-789 ACC#: 3456 0987 GRAND BANK - Receipt 18 January 2018 6.21 pm Receipt number 4563 Amount $3250.00 From MBB Catering Supplies 07 4567 3482 9856 To Kitchen Aid EFT
