PLEASE ANSWER, I'LL SURELY GIVE THUMBS UP. 10% GST

376 UNIT 2 ACCOUNTING AND DECISION MAKING FOR A TRADING BUSINESS WB page 284 Exercise 15.3 Reporting credit transactions Cozy Im solls home decorations and furnishings, and has provided the following information about its activities for August 2025 COZY IMIJ Balance Sheet (unclassified) as at 31 July 2025 Assets $ $ Equities Accounts Receivable 18400 Bank 2000 Inventory 700 12 600 Accounts Payable Shop fittings 5000 GST payablo 390 Loan - nab 9000 Capitol - Baird 23910 Total Assets 36000 Total Equities 36000 COZY IMIJ Cash Flow Statement for August 2025 S S 9900 5000 4400 500 12 500) (1950) (160) (150) (390) 5150 4750 CASH FLOWS FROM OPERATING ACTIVITIES Cash Receipts Cash sales Receipts from Accounts Receivablo GST received Payments to Accounts Payable Wages GST paid Interest on loan GST softlomont Net Cash Flows from Operations CASH FLOWS FROM INVESTING ACTIVITIES Computer equipment Net Cash Flows from Investing activities CASH FLOWS FROM FINANCING ACTIVITIES Capital contrbution Drawings Net Cash Flows from Financing activities Net Increase (Decrease) In cash position Add Bank Balonce at start (1 August 2025) Bank Balance at end (31 August 2025) (1 600) (1600) 3000 (1400) 1600 4750 (2000) 2750 . . Additional information: Credit sales for August 2025 were $4200 plus GST. Sales returns for August 2025 were $330 including GST. Credit purchases for August 2025 were $8700 plus GST Purchase returns for August 2025 were $110 including GST Cost of Sales for August 2025 were $7500. Inventory balance as per inventory cards as at 31 August 2025 was $13700, Physical inventory count as at 31 August 2025 was $13900. Discount granted to customers $140. Discount received from suppliers $80. . . . . CHAPTER 15 REPORTING FOR TRADING FIRMS . During August 2025, a balance of $220 owed by an Account Receivable was written off as a bad debt. The owner has not received formal notification of bankruptcy but has read in the newspaper that the customer has fled the country. The loan is repayable in instalments of $500 per month Required to report the bad debt. a Prepare an Income Statement for Cozy Imij for August 2025. b Explain why payments to Accounts Payable is not reported as an expense in the Income Statement c Discuss the ethical considerations involved in the owner's decision Ethical d Explain two reasons why Cozy Imij made a Net Loss yet generated considerations a Net Increase in cash for August 2025. e Calculate the balance of Accounts Receivable, Accounts Payable and the GST balance as at Prepare a Balance Sheet for Cozy Imijas at 31 August 2025 9 Referring to your answer to parte, explain your treatment of GST 31 August 2025. 284 UNIT 2 ACCOUNTING ANU DEL TB page 376 d Exercise 15.3 Cozy Imij Reporting credit transactions Reason 1 Reason 2 COZY IMU Income Statement for August 2025 $ $ Calculation Revenue Less Cost of Goods Sold Accounts Payable balance Gross Profit Calculation Adjusted Gross Profit Add Other revenue Less Other expenses Accounts Receivable balances Net Profit/(Loss) Calculation b Explanation GST payables Discussion CAMBRIDGE UNIVERSITY PRESS SIMMONS, HARDY 2010 CAMBRIDGE UNIVERSITY PRESS O SIMMONS, HARDY 2019