Question 1 (40 marks) Retail operations 'Cycling Deal' started its operation in bicycle retail industry on 1 June 2019. The business is owned by Alex Richardson. Cycling Deal purchase bicycles from suppliers and sell those cycles at the local markets. The business is registered for GST. The following transactions occurred during June 2019: Date Details 1-Jun Alex Richardson deposited $35,000 into the business bank account. 3-Jun Purchase of bicycles (100 small bicycles, and 100 large bicycles) from Rocky Hills Ltd on account for $10,000 ($50 per bicycle) plus GST on terms of 2/10, n/30. 4-Jun Cycling Deal received an invoice from Finland Delivery Ltd relating to delivery costs for the bicycles purchased on 3 June. The amount due is $300 (including GST), and is due on 18 June. 5-Jun Sent a cheque in the mail to Green Ltd for $200 (including GST), for stall fees at the local markets for the month of June. 6-Jun Sale of 30 bicycles (15 small bicycles, and 15 large bicycles) at the local markets, at $100 each (including GST). All of the customers paid by cash. The money was banked at the end of the day. 9-Jun Paid Rocky Hills Ltd for purchases made on 3 June (net of the early payment discount), by electronic funds transfer. 13-Jun Sale of 10 small bicycles to a local childcare centre, at $100 each (including GST), on 30 day credit terms. 15-Jun Sent a cheque in the mail to Finland Delivery Ltd, in relation to the invoice received on 4 June. 20-Jun Purchase of bicycles (40 small, and 15 large) from Rocky Hills Ltd on account for $3,190 ($58 per bicycle) plus GST on terms of 2/10, n/30. ACCT6002_Assessment Brief 2_Individual Case Study Page 4 of 11 23-Jun Cycling Deal received an invoice from Finland Delivery Ltd relating to delivery costs for the bicycles purchased on 20 June 2019. The amount due is $180 (including GST), and is due on 6 July 2019. 24-Jun Returned 20 of the small bicycles purchased on 20 June as they were damaged. 28-Jun Sale of 28 bicycles (18 small, and 10 large) at the local markets, at $100 each (including GST). All of the customers paid by cash. The money was banked at the end of the day. 30-Jun A stocktake was completed, and the number of bicycles on hand was 139 (54 small bicycles, and 85 large bicycles). Mr Richardson has come to you for assistance, as he would like to use the perpetual inventory system and the First-in-first-out (FIFO) costing method, but are not sure how to set this up. Required i) an Excel worksheet for each of the bicycle lines for June (one for the small bicycles, and one for the large bicycles) using the FIFO costing method to keep track of the number of bicycles purchased, bicycles sold, bicycles on hand, cost of goods sold and gross profit made. ii) Prepare journal entries (including any adjusting entries) for all of the business's transactions for June (using the perpetual inventory system and FIFO costing method). Include dates, references and narrations. iii) Prepare T-accounts in an Excel spreadsheet, and post all of the above journal entries to the T-accounts. Include dates and references for each entry. Total all of the T-accounts to determine their balances at the end of the June 2019. iv) Prepare the 'Adjusted Trial Balance' in an Excel spreadsheet as at 30th June 2019. Use formulas to generate all of the figures in the 'Adjusted Trial Balance' from the balances in the T-Accounts. v) The business has a year-end of 30th June. Prepare the closing entries as at 30th June 2019. vi) Prepare the income statement, balance sheet and statement of changes in equity in Excel.