Weighting: 20 Marks Wezan Pty Ltd is a private company which owns two petrol stations. Their head office is 65 Arthur Street, Coburg. They started business on 1st July 2019. Deanne Wezan, the sole director, makes an appointment with you to prepare the company's 2020 income tax return. At the interview she supplies you with the following financial information: Receipts NAB-Business Loan Cash Sales Banked Receipts from debtors Payments Motor Vehicle Expenses - Holden (see note 5) Replacement of petrol engine - Holden Power Rates Insurance 4,500,000 10,221,000 424,800 23,680 5,000 11,400 16,800 10,850 Telephone Expenses 1,850 Bank charges 1,200 Repairs and maintenance (see note 3 below) 7,990 Membership to Carlton FC (Deanne would take staff to the football on occasion) 1,200 1 Wages Superannuation Expense (see note 10 below) Loan repayment (see note 2 below) Fixed asset acquisition (note 6 below) Cash purchase - trading stock Payment to creditors Bonus (see note 11 below) 267,000 12,682 157,500 143,100 110,350 128,625 5,000 From the interview, and an analysis of the cash records and the working papers to last year's return, you ascertain: 1. Year-end reporting details Debtors at 30 June 2020 Creditors at 30 June 2020 Stock on Hand 30 June 2020 33,010 17,010 23,750 2. Loan repayment of $157,500 included a reduction in loan principal of $42,000. The loan was for business purposes only. 3. Repairs and maintenance comprised: 1 November 2019 - acquisition and installation of air conditioner 31 January 2020-gravel for car-park 1 May 2020 - new thermostat for refrigerator unit 6,000 1150 840 $7,990 4. Asset acquisition comprised: 1st July 2019 - Freezer 1st July 2019 - Refrigeration units 1st July 2019 - Holden - sedan 1st March 2020-Office equipment (see note 9) 10,000 12,500 62,400 23,000 $143,100 5. 6. Deanne owns a Holden sedan used 90% for business purposes. Log books have been maintained to substantiate this usage and the total running costs of maintaining this vehicle is $23,860. On 1 June 2020 Deanne was involved in a car accident. She decided to replace the car's wrecked petrol engine with a more efficient diesel engine with a much greater economy of operation at a cost of $5,000. She liked the idea as the new and better engine will reduce the likelihood of future repair bills. 7. On 15 June 2020 Deanne was informed that one of her clients who had owed her $2,000 since the beginning of the year was declared bankrupt and will receive no payment. 8. On 27 June 2020, Wazen Pty Ltd declared a bonus to be shared between employees of $5000. The bonus was not credited to the employee's account until 5 July 2020. 9. On 1 March 2020 Deanne purchased new office equipment for $23,000 for the business. She paid $1,000 delivery costs. The effective life of the new office equipment is 5 years. Deanne wants to claim the maximum deduction. 10. Superannuation expense relates to payments made for wages paid from 1 July 2019 to 30 March 2020. All expenses were paid within 28 days of the end of the month. REQUIRED Complete a statement of taxable income, explanatory notes, and depreciation schedule for the company for the year ending 30th June 2020. The assignment should be completed in groups of 3 as allocated by your lecturer and the word limit for the explanatory notes is 1000 words.