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Price By Jason and James started JJ Asian Cuisine on 01st July, the following transactions occurred in July: Date Transactions Amounts 1.Jul & 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 Units Price By 132 1,100 $ 0.12 2-Jul Cash purchase of vacuum seal bags Units 128 1,600 $ 0.08 3-Jul Credit card purchase of tiny containers (Small plastic for chillies oil) 380 Units 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. Price By 2,160 300 $ 7.20 4-Jul Agreed with an IGA Supermarket to provide a sample batch of product. Units Price By 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 576 113 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 Price B. Units 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. $ Price per serve 7.20 160 Serves sold ? 30 Jul Recorded depreciation for the month O Focus 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. Rent amount paid is for three months beginning 1st of July: "Prepaid" 7 Groceries purchased as required; treat as EXPENSE at purchase 6 Additional information: Policies and Estimates 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 3. Small side serve cups Adjustments Depreciation is calculated on a STRAIGHT LINE method Vasumn 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 160 660 Vacuum seal bags 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 $ 58.80 Required: A. Prepare necessary adjustments for depreciation expense and other expenses for m 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