assignment_pdf_31_MPA701_218004622_WEMIN_WEMIN.pdf - MPA701...

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MPA701 Assessment Task 3
MPA701: Accounting
Deakin Business School
First Name: WEMIN
Last Name: WEMIN
Student ID: 218004622
Trimester: T1 2018
Company Name: Abcde Pty Ltd
The company began operations as a retailer on 1 July in the current financial year. It buys and
sells 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 recording
method.
The company uses the straight line depreciation method for office furniture and computers and
the reducing balance method for motor vehicles.
The company employs two people who are rostered over a seven day working week. The
employees are paid fortnightly up to and including the day of payment. There are no penalty
wages.
The company has one debtor (Debtor1) and one creditor (Creditor1). Terms for all credit sales and
purchases are 30 days
Relevant information
1. The company has the following opening balances at the 1 July in the current financial
year:
Cash at Bank: $22,496.00
Accounts receivable: $4,671.00
Allowance for doubtful debt: $329.00
Inventory: $11,200.00
Motor vehicle: $21,498.00
Accumulated depreciation motor vehicle: $2,428.00
Accounts payable: $4,857.00
Bank loan owing (due in 20 months): $11,210.00
Office furniture: $13,695.00
Accumulated depreciation office furniture: $1,421.00
Office supplies: $575.00
Share capital: $36,464.00
Retained earnings: balance amount $17,426.00
2. Transactions for the month (all dollar amounts include GST where applicable).
02 July Sales on credit 53 units
05 July Sales on credit 68 units

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11 July Sales on credit 75 units
18 July Sales on credit 65 units
22 July Sales on credit 80 units
29 July Sales on credit 70 units
02 July Paid Wages (ignore PAYG tax) $1,705.00
16 July Paid Wages (ignore PAYG tax) $1,601.00
05 July Paid rent for the current month $2,293.00
12 July Paid insurance $1,005.00
05 July Received advertising invoice (due in 30 days) $751.00
05 July Purchased computer on credit $2,318.00
07 July Purchased inventory on credit 20 units at the cost per unit of $26.00
14 July Purchased inventory on credit 24 units at the cost per unit of $25.00
20 July Purchased inventory on credit 26 units at the cost per unit of $26.00
24 July Purchased inventory on credit 23 units at the cost per unit of $27.00
30 July Purchased inventory on credit 25 units at the cost per unit of $28.00
15 July Received payment from accounts receivable $694.00