The following pages contain the source documents for Michael's first month of business.( not quiet understand source documents)

ACCT10002: Semester 2, 2017 PRACTICE SET - PART 1 Michael Brown decided to leave his employment and start his own business in providing catering supplies to food outlets. He had worked in the industry for a number of years and had established a wide range of contacts both as suppliers of catering needs and customers who required catering supplies. He plans to start small and only trade in a few products at first. THE BUSINESS IS NOT REGISTERED FOR GST, accordingly, there is no requirement to account for or include GST in any transaction. The following pages contain the source documents for Michael's first month of business. Your task is to prepare: 1. General journal entries for the relevant transactions (Narrations are not required) 2. Ledger entries for the transactions (Record inventory items in separate accounts) 3. Prepare a Trial Balance 4. A Statement of Financial Performance for the month of July 5. A Statement of Financial Position as at 31 July, 2017. You have access to blank pages for the general journal and ledger accounts. You are to prepare the above five parts to this assignment and are required to submit items 4 and 5 as one document, with all other workings (items 1, 2, 3 and anything else you feel is relevant) in another document. Make sure you have your name and student number written on ALL page(s) of your workings and you will submit both documents via the LMS. You will receive a mark out of 7 for Part 1. If you have not received full marks then you should review your work by discussing with a fellow student or by comparing your answer with the suggested answer which will be made available on the LMS after the due date for submission and consulting a tutor during scheduled consultation hours. Due date for Part 1: 9.00pm Sunday 3rd September. Part 2 of the Practice Set will commence after students receive some basic instruction in using MYOB accounting software. This work entails entering transactions and adjustments for the second month of MBB Catering Services Pty. Ltd. The MYOB program will be set up in the computer laboratory in Bouverie Street. Alternatively some students may wish to use the Xero software. (More on this later). Part 2 will also be worth 7 marks of your final assessment and it will be due by 9.00 pm on Sunday 8th October. 1 MBB CATERING SUPPLIES Pty. Ltd. ACN: 780 088 423 290 ABN: 42 088 423 290 352 Boutique Boulevard Templestowe, 3107 SHARE CERTIFICATE This is to certify that Michael Bruce Brown is the holder of 10,000 ordinary shares in MBB Catering Supplies Pty. Ltd. on payment of $1 per share. Amount paid: $10,000 Date: 1 July 2017 OFFICE MEMORANDUM Date: 01/07/17 To: Michael Brown SUBJECT: 1. Michael Brown donated his station wagon to the firm. Original cost $15,000. Current market value: $3,000 in exchange for ordinary shares @$1 per share 2. Arranged loan with Grand Bank for $8,000; interest at 5% pa; payable quarterly. Full loan amount to be repaid 30 June 2021. Loan amount deposited in account today. 3. Keep freight paid to trade creditors in a separate freight account as I will make allowance for it in the price I will charge customers. 4. Depreciate the vehicle over 5 years with no value at the end. Signed: Michael Brown 2 Tax Invoice AAMI Business Insurance GPO Box 2470 Adelaide, South Australia 5001 To: Invoice No.: Date: Due Date: ABN: Biller Code: MBB Catering Supplies 351 Boutique Blvd Templestowe, VIC 3107 PAID 21/07/17 EFT 4564 Description Insurance for Business Operations- premium for 01/07/2017 to 30/06/18 Subtotal Total Amount $ 3000.00 3000.00 3000.00 Tax Invoice Hi-Road Real Estate 799 High Street KEW 3101 To: 00579246 01/07/2017 31/07/2017 48 005 297 807 3579 Invoice No.: Date: Due Date: ABN: Biller Code: MBB Catering Supplies 351 Boutique Blvd Templestowe, VIC 3107 089539 01/07/2017 31/07/2017 38 007 498 432 4382 PAID 21/07/17 EFT 4565 Description Rent due for hiring of premises from 1/07/2017 to 31/12/17 Total Amount $ 2,000.00 2,000.00 3 Tax Invoice ABN 95 000 029 729 6-8 Billbrooke Close Cameron Park, NSW 2286 Phone: (02) 4902 6500 Sold To: MBB Catering Supplies 351 Boutique Blvd Templestowe, VIC 3107 QTY 6 2 Description HD (Heavy Duty) Mixer Sandwich Press Freight Invoice No.: Date: Terms: PO #: Unit Price $ 600.00 210.00 Subtotal Total 3403 03/07/2017 N30 1008 Amount $ 3600.00 420.00 150.00 4170.00 $4170.00 Tax Invoice ABN 35 945 022 518 1 Inman Rd Cromer, NSW 2099 Phone: +61 2 9971 1788 Fax: +61 2 9971 1336 Sold To: MBB Catering Supplies 351 Boutique Blvd Templestowe, VIC 3107 QTY 5 5 Description Drink Machine Ice Cream machine Freight Invoice No.: Date: Terms: Unit Price $ 450.00 950.00 Subtotal Total 67456 06/07/2017 N30 Amount $ 2250.00 4750.00 200.00 7200.00 $7200.00 4 Credit Note ABN 95 000 029 729 6-8 Billbrooke Close Cameron Park, NSW 2286 Phone: (02) 4902 6500 Sold To: MBB Catering Supplies 351 Boutique Blvd Templestowe, VIC 3107 QTY 1 Description HD Mixer Credit Note No.: Date: Unit Price $ 600.00 Amount $ 600.00 Subtotal Total 600.00 600.00 Tax Invoice MBB CATERING SUPPLIES ABN 42 088 423 290 351 Boutique Blvd Templestowe, VIC 3107 Phone: (03) 9850 0351 Sold To: Can Do Cafe 23 Main Street Eltham, VIC 3095 QTY Description 1 Ice Cream Machine 2 HD Mixer 2 Drink Machine 1222 06/07/2017 Invoice No.: Date: Terms: PO #: Price $2400.00 $1100.00 $950.00 Sale Amount: Freight: Total Amount: Paid Today: Balance Due: 0001 12/07/2017 5%10, N30 EFT Amount $2400.00 $2200.00 $1900.00 $6500.00 0.00 $6500.00 $0.00 $6500.00 5 Tax Invoice Doncaster Auto Repairs 1001 Doncaster Road Doncaster, VIC 3108 Phone: (03) 9848 2222 Invoice No.: Date: 3403 12/07/2017 ABN 84 002 168 032 Biller Code: 5167 To: MBB Catering Supplies Description Service freight vehicle Parts Labour Amount $580.00 $300.00 $880.00 Tax Invoice MBB CATERING SUPPLIES ABN 42 088 423 290 351 Boutique Blvd Templestowe, VIC 3107 Phone: (03) 9850 0351 Sold To: Cash Sale QTY Description 1 Heavy Duty Mixer 1 Vitamix Drink Machine Invoice No.: Date: Terms: PO #: Price $1100.00 $950.00 Sale Amount: Freight: Total Amount: Paid Today: Balance Due: 0002 13/07/2017 COD EFT Amount $1100.00 $950.00 $2050.00 $0.00 $2050.00 $2050.00 $0.00 6 Tax Invoice MBB CATERING SUPPLIES ABN 42 088 423 290 351 Boutique Blvd Templestowe, VIC 3107 Phone: (03) 9850 0351 Sold To: Cash Sales Invoice No.: Date: Terms: PO #: QTY Description 1 Ice Cream Machine Price $1950.00 Sale Amount: Freight: Total Amount: Paid Today: Balance Due: GRAND BANK - Receipt 0003 14/07/2017 COD EFT Amount $1950.00 $1950.00 $0.00 $1950.00 $1950.00 $0.00 14 July 2017 4.22.pm Receipt number 4561 Amount $880.00 From MBB Catering Supplies 07 4567 3482 9856 To Doncaster Auto Repairs 313-140 Mecu Limited 54231789 #3403 7 GRAND BANK - Receipt 14 July 2017 4.28.pm Receipt number 4562 Amount $7200.00 From MBB Catering Supplies 07 4567 3482 9856 To Roband P/L Biller Code: Ref: 5248 9301 Inv #67456 Tax Invoice MBB CATERING SUPPLIES ABN 42 088 423 290 351 Boutique Blvd Templestowe, VIC 3107 Phone: (03) 9850 0351 Sold To: Organix Caf and Food Store 42 James Street Templestowe, VIC 3106 QTY Description 1 HD Mixer 1 Drink Machine Invoice No.: Date: Terms: PO #: Price $1100.00 $900.00 Sale Amount: Freight: Total Amount: Paid Today: Balance Due: 0004 15/07/2017 5%10, N30 EFT Amount $1100.00 $900.00 $2000.00 $0.00 $2000.00 0.00 $2000.00 8 Credit Note MBB CATERING SUPPLIES ABN 42 088 423 290 351 Boutique Blvd Templestowe, VIC 3107 Phone: (03) 9850 0351 Sold To: Organix Cafe - Return of Sale 42 James Street Templestowe, VIC 3106 QTY 1 HD Mixer Description Credit Note No.: Date: Price $1100.00 Sale Amount: Freight: Total Amount: Amount $1100.00 $1100.00 $0.00 $1100.00 Tax Invoice MBB CATERING SUPPLIES ABN 42 088 423 290 351 Boutique Blvd Templestowe, VIC 3107 Phone: (03) 9850 0351 Sold To: Cash Sales QTY 1 HD Mixer Description 0001 16/07/2017 Invoice No.: Date: Terms: PO #: Price $850 Sale Amount: Freight: Total Amount: Paid Today: Balance Due: 0005 17/07/2017 COD EFT Amount $850.00 $850.00 $0.00 $850.00 $850.00 $0.00 9 Tax Invoice ABN 45 689 643 101 Unit 2 / 7 Minnie Street Belmore, NSW 2192 Sold To: QTY 4 4 4 1 Invoice No.: Invoice Date: Terms: PO #: 0036897 18/07/2017 4/10, N30 2023 MBB Catering Supplies 351 Boutique Blvd Templestowe, VIC 3107 Item Description Double-sided Flat Back Gondola Shelving Single-sided Flat Back Gondola Shelving Single-sided Peg Board Gondola Shelving Florence Counter Display Unit Price $ 205.00 105.00 95.00 750.00 Freight Subtotal Amount $ 820.00 420.00 380.00 750.00 30.00 2400.00 Total 2400.00 BSB: 454-789 ACC#: 3456 0987 Tax Invoice MBB CATERING SUPPLIES ABN 42 088 423 290 351 Boutique Blvd Templestowe, VIC 3107 Phone: (03) 9850 0351 Sold To: Can Do Cafe 23 Main Street Eltham, VIC 3095 QTY Description 1 Sandwich Press 1 Drink machine Invoice No.: Date: Terms: PO #: Price $420.00 $900.00 Sale Amount: Freight: Total Amount: Paid Today: Balance Due: 0006 18/07/2017 COD EFT Amount $420.00 $900.00 $1320.00 $0.00 $1320.00 $500.00 $820.00 10 GRAND BANK - Receipt 18 July 2017 6.21 pm Receipt number 4563 Amount $3570.00 From MBB Catering Supplies 07 4567 3482 9856 To Kitchen Aid EFT Tax Invoice MBB CATERING SUPPLIES ABN 42 088 423 290 351 Boutique Blvd Templestowe, VIC 3107 Phone: (03) 9850 0351 Sold To: The Tiki Room 18 Grand Blvd Montmorency, VIC 3094 QTY Description 1 Ice Cream machine Invoice No.: Date: Terms: PO #: Price $2400.00 Sale Amount: Freight: Total Amount: Paid Today: Balance Due: 0007 21/07/2017 5%10, N30 6487 Amount $2400.00 $2400.00 0.00 $2400.00 $0.00 $2400.00 11 GRAND BANK - Receipt 21 July 2017 5.34 pm Receipt number 4564 Amount $3000.00 From MBB Catering Supplies 07 4567 3482 9856 To AAMI Biller Code: Ref: 2989 00579246 Annual insurance GRAND BANK - Receipt 21 July 2017 5.45 pm Receipt number 4565 Amount $2000.00 From MBB Catering Supplies 07 4567 3482 9856 To Hi-Road Real Estate Biller Code: Ref: 2989 089539 Rental payment 12 GRAND BANK - Receipt 25 July 2017 8.32 am Receipt number 4566 Amount $2304.00 From MBB Catering Supplies 07 4567 3482 9856 To OZ Shelving Systems 454-789 Westpac Limited 0036897 #36897 5/10 OFFICE MEMORANDUM Date: 31/07/16 To: Accountant SUBJECT: End of month adjustments: Please attend to relevant adjustments to determine the profit or loss made in the first month of trading. Some adjustments relate to the invoices received but other adjustments that need to be considered are: 1. One of the items of Inventory (the Ice cream machine cannot be sold unless we price it at $850 due to some damage that occurred in the storeroom) 2. Wages owing to part-time assistant $650 3. Estimated Depreciation of shelving $200 4. The Tiki Room settled their account in full on the 28th July. Signed: Michael Brown 13 Grand Bank ABN 47 598 943 243 MBB Catering Supplies BSB No: 512-170 351 Boutique Blvd Account No: 11595 Templestowe, VIC 3107 Page: 1 of 1 Debit $ 01/07/17 01/07/17 01/07/17 02/07/17 13/07/17 14/07/17 14/07/17 14/07/17 17/07/17 18/07/17 18/07/17 21/07/17 21/07/17 25/07/17 28/07/17 Opening Balance Deposit Bank deposit Bank Fees - month EFTPOS BB's Bakery EFTPOS Daily Reconciliation EFT #4561 EFT #4562 EFTPOS Daily Reconciliation EFT #4563 EFTPOS Daily Reconciliation EFT #4564 EFT #4565 EFT #4566 EFTPOS Daily Reconciliation $15.00 $880.00 $7,200.00 $3,570.00 $3,000.00 $2,000.00 $2,304.00 Date: 31 July 2017 Credit Balance $ $ 0 $10,000.00 $10,000.00 $8,000.00 $18,000.00 $17,985.00 $2,050.00 $20,035.00 $1,950.00 $21,985.00 $21,105.00 $13,905.00 $850.00 $14,755.00 $11,185.00 $500.00 $11,685.00 $8,685.00 $6,685.00 $4,381.00 $2,280.00 $6,661.00 14 MBB Catering Supplies Pty. Ltd. Date 2017 July GENERAL JOURNAL Description p.1 Debit Credit MBB Catering Supplies Pty. Ltd . Date GENERAL JOURNAL Description p.2 Debit Credit MBB Catering Supplies Pty. Ltd . Date GENERAL JOURNAL Description p.3 Debit Credit MBB Catering Supplies Pty. Ltd. Date Description GENERAL JOURNAL Debit p.4 Credit MBB Catering Supplies Pty. Ltd. INCOME STATEMENT for the period 1 July 2017 to 31 July 2017 INCOME Revenue: Total Revenue COST OF SALES Total Cost of Sales GROSS PROFIT Other Income: Total Other Income TOTAL INCOME EXPENSES TOTAL EXPENSES NET PROFIT/(LOSS) MBB Catering Supplies Pty. Ltd. GENERAL LEDGER Name: BANK ACCOUNT - MBB Catering Supplies Pty. Ltd. Date 2017 July Details Debit Date 2017 July Details Credit Debit Date 2017 July Details Credit Debit Date 2017 July Details Credit Debit Date 2017 July Details Credit Name: SHARE CAPITAL Date 2017 July Details Name: MOTOR VEHICLE Date 2017 July Details Name: BANK LOAN Date 2017 July Details Name: INVENTORY - Heavy Duty Mixer Name: INVENTORY - Heavy Duty Mixer Date 2017 July Details Debit Date 2017 July Details Credit Debit Date 2017 July Details Credit Date 2017 July Details Credit Details Credit Name: INVENTORY - Panini Press Date 2017 July Details Name: INVENTORY - Vitex Drink Machine Date 2017 July Details Debit Name: INVENTORY - Gelato Ice Cream Machine Date 2017 July Details Debit Date 2017 July Name: Freight Expense Date 2017 July Details Debit Date 2017 July Details Credit Date 2017 July Details Credit Date 2017 July July Details Credit Details Credit Details Credit Name: ACCOUNTS PAYABLE - KitchenAid Date 2017 July Details Debit Name: ACCOUNTS PAYABLE - Roband Date 2017 July July Details Debit Name: ACCOUNTS PAYABLE - Doncaster Auto Repairs Date 2017 July July Details Debit Date 2017 July July Name: ACCOUNTS RECEIVABLE - Can Do Cafe Date 2017 July Details Debit Date 2017 July Name: ACCOUNTS RECEIVABLE - Organix Date 2017 July Details Debit Date 2017 July Details Credit Name: ACCOUNTS RECEIVABLE - The Tiki Room Date 2017 July Details Debit Date 2017 July Details Credit Debit Date 2017 July Details Credit Debit Date 2017 Details Credit Name: CREDIT SALES Date 2017 July Details Name: CASH SALES Date 2017 July Details July Name: COST OF SALES Date 2017 July Details Debit Date 2017 July Details Credit Debit Date 2017 July Details Credit Debit Date 2017 July Details Credit Date 2017 July Details Credit Name: SALES RETURNS and ALLOWANCES Date 2017 July Details Name: VEHICLE REPAIRS Date 2017 Details Name: ACCOUNTS PAYABLE - Oz Shelving Date 2017 July Details Debit Name: ACCOUNTS PAYABLE - AAMI Date 2017 July Details Debit Date 2017 July Details Credit Name: ACCOUNTS PAYABLE - Hi Road Real Estate Date 2017 July Details Debit Date 2017 July Details Credit Debit Date 2017 July Details Credit Debit Date 2017 July Details Credit Debit Date 2017 July Details Credit Name: DISCOUNTS RECEIVED Date 2017 July Details Name: DISCOUNT EXPENSE Date 2017 July Details Name: PREPAID INSURANCE Date 2017 July Details Name: PREPAID RENT Date 2017 July Details Debit Date 2017 July Details Credit Debit Date 2017 July Details Credit Date 2017 July Details Credit Name: OFFICE SHELVING Date 2017 July Details Name: DEPRECIATION - Office Shelving Date 2017 July Details Debit Name: ACCUMULATED DEPRECIATION - Office Shelving Date 2017 July Name: Date 2017 July Name: Details Debit Date 2017 July Details Credit Details Debit Date 2017 July Details Credit WAGES WAGES PAYABLE Name: WAGES PAYABLE Date 2017 July Name: Date 2017 July Details Debit Date 2017 July Details Credit Details Debit Date 2017 July Details Credit Debit Date 2017 July Details Credit RENT Name: INSURANCE Date Details 2017 July Name: INVENTORY WRITE-DOWN Date Details Debit 2017 July Date Details Credit 2017 July Name: INTEREST Date 2017 July Details Debit Date 2017 July Details Credit Debit Date 2017 July Details Credit Debit Date 2017 July Details Credit Name: INTEREST PAYABLE Date 2017 July Details Name: BANK FEES Date 2017 July Details Name: INCOME SUMMARY Date 2017 July Details Debit Date 2017 July Details Credit Account Bank Account - MBB Catering Trial Balance Adjustments Adjusted Trial Balance Income Statement Balance Sheet