Zenana Pty Ltd is a private company which owns two petrol stations. Their head office is 160 Anderson Street, Essendon. They started business on 1st July 2021. Deanne Zenana, the sole director, makes an appointment with you to prepare the companys 2022 income tax return. At the interview she supplies you with the following financial information: Receipts CBA Business Loan 4,500,000 Cash Sales Banked 11,334,000 Credit card sales 5,620,800 Receipts from debtors 542,800

Payments Motor Vehicle Expenses Holden (see note 5) 23,680 Replacement of tray on Holden Ute 5,000 Power 23,400 Rates 18,800 Insurance (see note 11) 25,850 Telephone Expenses (see note 12) 5,350 Bank charges 1,200 Repairs and maintenance (see note 3 below) 7,090 Membership to Carlton FC (Deanne would take staff to the football on occasion) 1,200 Wages 267,000 Superannuation Expense (see note 10 below) 12,682 Loan repayment (see note 2 below) 157,500 Fixed asset acquisition (note 6 below) 143,100 Cash purchase trading stock 230,350

Payment to creditors 248,625 Bonus (see note 8 below 1,200

From the interview, and an analysis of the cash records and the working papers to last years return, you ascertain: 1. Year-end reporting details Debtors at 30 June 2022 33,010 Creditors at 30 June 2022 23,010 Stock on Hand 30 June 2022 53,000

2. Loan repayment of $257,500 included a reduction in loan principal of $122,000. The loan was for business purposes only.

3. Repairs and maintenance comprised: 1 November 2021 acquisition and installation of air conditioner 5,500 31 January 2021 gravel for car-park 950 1 May 2021 new thermostat for refrigerator unit 640 $7,090 4. Asset acquisition comprised: 1st July 2021 - Freezer 10,000 1st July 2021 - Refrigeration units 12,500 1st July 2021 - Holden Ute 62,400 1st March 2022 Office equipment (see note 9) 24000 T: $108,900 5. Deanne owns a Holden Ute used 90% for business purposes. Logbooks have been maintained to substantiate this usage and the total running costs of maintaining this vehicle is $28,660.

6. On 1 June 2022 Deanne was involved in a car accident. She decided to replace the cars wrecked Ute tray with a stronger tray which will last much longer at a cost of $4,000. She liked the idea as the new and better Ute tray will reduce the likelihood of future repair bills.

7. On 15 June 2022 Deanne was informed that one of her clients who had owed her $1,500 since the beginning of the year was declared bankrupt and will receive no payment.

8. On 27 June 2022, Zenana Pty Ltd declared a bonus to all employees totalling $1,200. The $1,200 bonus was not credited to the employees account until 5 July 2022.

9. On 1 March 2022 Deanne purchased new office equipment for $21,000 for the business. She paid $3,000 delivery and installation 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 2021 to 30 March 2022. All expenses were not paid within 28 days of the end of the month.

11. Insurance payment of 25,850 includes an advance payment of $12,925 for the 2022-2023 financial year. 12. Telephone expenses also includes the cost of a new mobile phone costing $1,200

REQUIRED Complete a statement of taxable income, and depreciation schedule for the company for the year ending 30th June 2022.