© Copyright Deakin University 2018.1Thu, 03 May 18 20:00:07 +1000MPA701 Assessment Task 3MPA701: AccountingDeakin Business SchoolFirst Name: WEMINLast Name: WEMINStudent ID: 218004622Trimester: T1 2018Company Name: Abcde Pty LtdThe company began operations as a retailer on 1 July in the current financial year. It buys andsells one inventory item, derrings, from a leased warehouse in the outer suburbs of Melbourne.The company is registered for GST which it pays quarterly. Assume GST was last paid on 30 June.It uses the Weighted Average cost allocation method and the perpetual inventory recordingmethod.The company uses the straight line depreciation method for office furniture and computers andthe reducing balance method for motor vehicles.The company employs two people who are rostered over a seven day working week. Theemployees are paid fortnightly up to and including the day of payment. There are no penaltywages.The company has one debtor (Debtor1) and one creditor (Creditor1). Terms for all credit sales andpurchases are 30 daysRelevant information1. The company has the following opening balances at the 1 July in the current financialyear:Cash at Bank: $22,496.00Accounts receivable: $4,671.00Allowance for doubtful debt: $329.00Inventory: $11,200.00Motor vehicle: $21,498.00Accumulated depreciation motor vehicle: $2,428.00Accounts payable: $4,857.00Bank loan owing (due in 20 months): $11,210.00Office furniture: $13,695.00Accumulated depreciation office furniture: $1,421.00Office supplies: $575.00Share capital: $36,464.00Retained earnings: balance amount $17,426.002. Transactions for the month (all dollar amounts include GST where applicable).02 July Sales on credit 53 units05 July Sales on credit 68 units
© Copyright Deakin University 2018.2Thu, 03 May 18 20:00:07 +100011 July Sales on credit 75 units18 July Sales on credit 65 units22 July Sales on credit 80 units29 July Sales on credit 70 units02 July Paid Wages (ignore PAYG tax) $1,705.0016 July Paid Wages (ignore PAYG tax) $1,601.0005 July Paid rent for the current month $2,293.0012 July Paid insurance $1,005.0005 July Received advertising invoice (due in 30 days) $751.0005 July Purchased computer on credit $2,318.0007 July Purchased inventory on credit 20 units at the cost per unit of $26.0014 July Purchased inventory on credit 24 units at the cost per unit of $25.0020 July Purchased inventory on credit 26 units at the cost per unit of $26.0024 July Purchased inventory on credit 23 units at the cost per unit of $27.0030 July Purchased inventory on credit 25 units at the cost per unit of $28.0015 July Received payment from accounts receivable $694.00
