When you have entered all transaction data, you should prepare and submit the following reports: All journals and the full set of general ledger T accounts. Pre-Closing Trial balances as at 30 June 2019 Post-Closing Trial Balance as at 30 June 2019 Income Statement (Statement of Financial Performance) for the year ended 30 June 2019 Balance Sheet (Statement of Financial Position) as at 30 June 2019 Bank Reconciliation as at as at 30 June 2019 A stock-card to show the movement of inventory in June 2019 Company Information Sheet for Megs Magic: Megs Magic Ltd is a local retail business that sells rugs. The business was set up by Meg who registered the company on 1 July 2014 and issued 150 000 shares.

The Financial year for the company ends on 30 June. Megs Magic Ltd use sales, purchases, cash receipts, cash payments journals and a general journal, along with a general ledger and subsidiary ledgers for debtors and creditors. The majority of their customers pay in cash but they do offer credit to a handful of valued customers. Credit sales are on the terms: 3/10, n/30. Megs Magic Ltd rent a local warehouse paying rent of $1 650 each month (including GST). The business uses a perpetual inventory system and applies the LIFO inventory flow assumption. Opening inventory is made up of 75 rugs @ $1 000 each. The companys warehouse fittings are being depreciated over 10 years with an estimated residual value of $6 500. The company has two delivery vans which are being depreciated over 6 years with an estimated combined residual value of $8 500. The loan was taken out on the 31st May and loan payments of $2 000 per month plus interest will be made monthly with the first payment due on the 1st July 2019. Interest is to be paid at a rate of 11% per annum. The first months interest is to be calculated on the full value of the loan of $60 000. Provision for doubtful debts is always adjusted at the end of each month to equal 5% of the value of debtors at that time. The company account for GST on an accrual basis and reconcile and pay GST every quarter. All figures are GST inclusive unless otherwise stated, thus you will need to divide each figure by 11 to identify the GST component. GST was last paid in April 2019 and was next due to be paid in July 2019 thus you DO NOT need to reconcile or pay GST at the end of June 2019 for the quarter. This will be done by the accountant in July. Gross wages represent the total wages expense. Tax taken from wages needs to be treated as Tax Payable ie: Gross wages = net wages paid + PAYG Tax Payable Round all amounts to the nearest dollar. The trial balance of the company at 31 May 2019 was as follows: Megs Magic Ltd Trial Balance as at 31 May 2019 DR CR 100 Cash at bank 160 550 101 Debtors control 14 800 102 Provision for doubtful debts 270 103 Inventory 75 000 104 Warehouse Fittings 80 300 105 Accumulated depreciation W/H Fittings 14 145 106 Motor Vehicles (Delivery Vans) 62 500 107 Accumulated depreciation m/vehicles 9 000 200 Creditors control 16 200 250 Accrued Expenses 7 980 260 Loan 60 000 300 Share capital 150 000 310 Retained profits 90 575 400 Sales Revenue 620 540 401 Sales returns 3 900 402 Discount revenue 5 850 500 Cost of goods sold 300 500 501 Depreciation Expense W/H Fittings 6 765 502 Depreciation Expense M/V 8 250 503 Discount expense 2 620 504 Electricity expense 11 200 505 Income Tax expense 85 000 506 Interest expense 4 125 507 Motor Vehicle expenses 6 200 508 Rent expense 16 500 509 Sundry expenses 1 650 510 Telephone expense 2 250 511 Wages expense 135 000 600 GST Collected 9 100 610 GST Paid 6 550 $983 660 $983 660 Schedule of Debtors Schedule of Creditors as at 31 May 2019 as at 31 May 2019 Rose Ltd 2 400 Malt Ltd 1 300 Amaze Ltd 3 200 Pump Ltd 7 600 Just Ltd 1 700 Pines Ltd 1 900 Waffle Ltd 7 500 Yaze Ltd 5 400 $14 800 $16 200 The following transactions occurred in June 2019: (All figures are inclusive of GST unless otherwise stated) June 1 Received a cheque for $2 200 from Rose Ltd (no discount allowed) as part payment of their account, and deposited it in the bank account [Hint: GST does not need to be considered when you record this transaction, as GST received would have been recorded at the time of the original sale] 2 Sold 3 rugs for $6 000 (before discount) to Just Ltd on credit, the company was also given a trade discount of $500, then the normal credit terms) [Hint: Sale = $5 000; GST Collected = $500; COGS/Inventory = $3 000] 4 Purchased 10 rugs on credit from Pines $12 100 (no discount allowed). 5 Paid Yaze $5 200 in full settlement of amount owing, chq no. 252(the business was given a settlement discount for the difference) 8 Received and deposited payment in full from Waffle Ltd (no discount allowed) 11 Sold 10 rugs on credit to Waffle for $22 000 12 Paid Pines Ltd $3 495, being part payment of account owing to date, chq no. 253 12 Paid telephone account of $825, chq no. 254 14 Received a cheque for $5 500 from Waffle Ltd in part payment of their account (no discount allowed) 14 Banked cash sales of 25 rugs sold for a total of $51 150 14 Withdrew cash from the bank account to pay wages of $3 900(after PAYG tax, gross wages were $5 900 (wages before tax). 17 Paid $462 for plastic bags and stationery items, chq no.255 18 Sold 2 rugs credit to Amaze Ltd $3 564 23 Paid Malt Ltd $ 1 300, chq no. 256 27 Paid sundry expenses of $250, chq no. 257 28 Wrote off the balance of the account owed by Rose Ltd as a bad debt 28 Deposited Cash from sales of 15 rugs of $30 800 29 Withdrew cash from the bank to pay wages of $4 300, gross wages were $6 200. 29 Purchased 4 rugs on credit from Pines Ltd of $5 380 (before discount) The business was allowed a trade discount of $100 and terms of 1/10, n/30 30 Banked cash sales from the sale of 3 rugs for a total of $7 700 30 Amaze Ltd paid their debt in full by cash (no discount allowed). 30 Paid the rent for June, chq 258 Additional information at the end of the month: Ignore GST for all adjusting entries. Gross wages owing at the end of the month total $3 500 (no PAYG tax payable) Electricity owing for the month of June is $350 (no GST) Advertising owing for the month was $500 (no GST) Income tax for the month of June 2019 is estimated to be $8 200 (no GST) On the last day of the month (30 June) the business traded both of the delivery vans in for two larger vans worth $120 000 in total(GST free - no GST). They were given a trade in of $50 000 on the old vans, with the balance to be paid in 30 days. The new vans depreciation rate and residual value have not yet been determined No entries had been made in the accounts to allow for any of these items The bank statement received at the end of June shows the following information: Bank Statement Megs Magic Ltd 2019 Debit Credit Balance June 1 Balance 160 000 CR Deposit 4 800 164 800 CR Deposit 2 200 167 000 CR 3 Chq.no. 200 3500 163 500 CR 4 Chq.no. 201 750 162 750 CR 8 Chq. no. 252 5 200 157 550 CR Deposit 7 500 165 050 CR 14 Chq. no. 253 3 495 161 555 CR 14 Deposit 5 500 167 055 CR 14 Deposit 51 150 218 205 CR 14 Chq. no. 254 825 217 380 CR 14 Cash withdrawal 3 900 213 480 CR 19 Chq. no. 255 462 213 018 CR 27 Chq. no. 256 1 300 211 718 CR 29 Deposit 30 800 242 518 CR 30 Cash withdrawal 4 300 238 218 CR 30 Bank fees/charges 35 238 183 CR 30 Dividend Received 1 500 239 683 CR At 31 May 2019 there were two outstanding cheques cheque no. 200 for $3 500 and cheque no. 201 $750 and an outstanding deposit for $4 800.