Relevant information:

Opening balances as at $1/7/2023$

Account name Value

Cash at Bank $$50,950$

Accounts receivable $$5,587$

Allowance for doubtful debt $$620$

Motor vehicle $$40,230$

Accumulated depreciation motor vehicle $$5,028$

Accounts payable $$10,056$

Bank Loan $$21,117$

Office furniture $$14,781$

Accumulated depreciation office furniture $$1,642$

Office supplies $$821$

Share capital $$57,470$

Retained earnings $$16,436$

$2.$ Transactions for the month $($all dollar amounts include GST where applicable$).$

Date Description

$1/7/2023$ Purchased $125$ units of inventory with cash at the cost price of $$55($including GST$)$

$2/7/2023$ Sales on credit of $9$ units.

$3/7/2023$ Purchased office supplies worth $$1094\mathrm{.}5($including GST$)$ and paid in cash.

$4/7/2023$ Purchased $20$ units of inventory on credit at the cost price of $$66($including GST$)$

$5/7/2023$ Paid $$1572$ of wages in cash $($ignore PAYG tax$).$

$7/7/2023$ Sales on credit of $16$ units.

$9/7/2023$ Received payment from accounts receivable of $$5587.$

$10/7/2023$ Received payment from accounts receivable of $$1980.$

$11/7/2023$ Purchased $16$ units of inventory on credit at the cost price of $$66($including GST$)$

$12/7/2023$ Sales on credit of $13$ units.

$14/7/2023$ Paid accounts payable $$1320.$

$15/7/2023$ Purchased a computer worth $$3872($including GST$)$ on credit.

$17/7/2023$ Purchased $28$ units of inventory on credit at the cost price of $$66($including GST$)$

$19/7/2023$ Paid $$4400$ of wages in cash $($ignore PAYG tax$).$

$20/7/2023$ Received payment from accounts receivable of $$3520.$

$21/7/2023$ Purchased $21$ units of inventory on credit at the cost price of $$44($including GST$)$

$22/7/2023$ Sales on credit of $86$ units.

$24/7/2023$ Paid accounts payable $$1056.$

$27/7/2023$ Paid motor vehicle expenses $$199\mathrm{.}1$ in cash $($including GST$).$

$28/7/2023$ Received payment from accounts receivable of $$2860.$

$29/7/2023$ Paid rent for the current month $$5808$ in cash $($including GST$).$

$30/7/2023$ Paid insurance fee for the month of November $$3630$ in cash $($including GST$).$

$3.$ Additional information

Selling Price per unit is $$220($including GST$).$

Insurance paid for $12$ months in total. Insurance commences from the first day of the month in which it is paid.

All asset purchases $($including inventory cost per unit$)$ and expenses $($except wages$)$ include GST$.$

Depreciation rate motor vehicle $10\%.$

The residual value of motor vehicle is assumed to be $$502.$

Depreciation rate office furniture $20\%.$

The residual value of office furniture is assumed to be $$739.$

Regardless of purchase date, company policy is to depreciate new assets for $15$ days in the month of purchase.

Depreciation rate computer equipment $35\%.$

No residual value is expected for computer equipment.

The company counted inventory at the end of the month. They discovered that $11$ units were missing and these must be removed from inventory.

Office supplies on hand at end of the month were $$806.$

At the end of the month the company records potential bad debts expense using the percentage of sales method.

The business uses $1\%$ of sales to determine estimated bad debts.

The employees were paid up $30$ June $2023.$

There is $$134$ of interest owing on the bank loan at the end of the month that has yet to be recorded.