On 1st of June 202X Large Mart orders 20 notebook computers from Dell for a price of $3000 per notebook computer. The notebook computers arrive on 4th of June 202X, and are paid via electronic funds transfer (EFT) on 14th of June 202X after deducting an early payment discount of 5%.

On 5th June 202X, UNE purchases 8 notebook computers on credit for $6,000 per notebook computer for the law department. On 7th June 202X UNE pays the notebook computers via EFT after deducting an early payment discount of 8%.

On 9th June 202X, the UNE law department returns three damaged notebook computers that were purchased on 5th June 202X. Large Mart accepts the return and issues a credit note to UNE for the returned damaged notebook computers. Large Mart destroys the three damaged notebook computers as they are not in a condition that would allow them to be re-sold. Large Mart does not receive any compensation from Dell for the damaged notebook computers.

On 10th June 202X, Large Mart purchases another 20 notebook computers from Dell at a special price of $2,800. Normally these notebook computers would cost $3,000, but Large Mart was able to receive a volume discount of $200 for each notebook computer. The notebook computers arrive on the same day with the following terms 3/30. Large Mart pays this new delivery of notebook computers via EFGT on 9th July 202X.

On 22nd June 202X, Large Mart holds an end of financial year sale.

On the 23rd of June 202X Large Mart sells 18 notebook computers to Monash University (MU). MU purchases the notebook computers on credit for a list price $4,600 per notebook computer. However, MU also received a volume discount of $100 per item at time of purchase (reducing the price of each notebook computer to $4,500). At the end of the financial year that is 30 June 202X, Large Mart is advised that Dell will begin to sell a new version of the notebook computer early in July 202X. As a result, Large Mart believes that all notebook computers currently in store can only be sold if the sales price is immediately reduced to $2,400 per notebook computer.

On 1st July 202X, Large Mart required an Automatic Wrapping Machine (AWM), and the purchase price is $467,112. However as Large Mart did not have sufficient cash resources at that time it decided to enter into a lease agreement with Verdex Ltd. The duration of the lease is 3 years, and the AWM has an expected useful life of 5 years. The lease contract requires Large Mart to pay $155,000 (via EFT) on 30th June of each year during the lease period starting 30 June 202X +1. The annual payment includes $5,000 to reimburse the lessor for costs associated with the AWM. The lease contract states that Large Mart can cancel the agreement only with the permission of the lessor. The interest rate implicit in the lease is 7%. It is expected that the AWM has a residual value of $50,000 at the end of its useful life. At the end of the lease period, Large Mart will be able to purchase the AWM for a payment of $60,000. It is expected that the equipment has a fair value of $90,000 at the time Large Mart is able to exercise the purchase option. Large Mart uses the sum of digits method (SOD) method to depreciate similar equipment.

1)Calculate Cost-of-Goods-Sold and the closing balance of the Inventory Trade/Sales account for the year ended 30 June 202X of the new Large Mart Store (based on the information provided in this assignment ONLY). Determine if the release of the new notebook computer will have any impact on the closing balance of the Inventory Trade/Sales account, explain your decision, and provide all journal entries that are necessary in the books of Large Mart to account of this impact (if any exists) (3 marks).

2)Provide all journal entries that are necessary in the books of Large Mart to record the inception of the lease for the AWM, the lease payments made at the end of the first year of the lease term (30 June 202X+1), and the depreciation of the leased AWM for the month ended 31st July 202X (if any depreciation is required) (3 marks). YOU MUST PROVIDE DETAILS OF ALL NECESSARY CALCULATIONS!