© Copyright Deakin University 2019.
1
Wed, 16 Jan 19 12:58:07 +1100
MPA701 Assessment Task 3
MPA701: Accounting
Deakin Business School
First Name: PETER
Last Name: PHAN
Student ID: 217171799
Trimester: T3 2018
Company Name: Abcde Pty Ltd
The company began operations as a retailer on 1 July 2016. 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:
$23,787.00
Accounts receivable:
$3,854.00
Allowance for doubtful debt:
$485.00
Inventory:
$10,800.00
Motor vehicle:
$24,371.00
Accumulated depreciation motor vehicle:
$2,718.00
Accounts payable:
$5,468.00
Bank loan owing (due in 20 months):
$11,576.00
Office furniture:
$10,800.00
Accumulated depreciation office furniture:
$1,870.00
Office supplies:
$605.00
Share capital:
$37,362.00
Retained earnings: balance amount
$14,738.00
2. Transactions for the month (all dollar amounts include GST where applicable).
02 July Sales on credit
61
units
05 July Sales on credit
77
units
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Wed, 16 Jan 19 12:58:07 +1100
11 July Sales on credit
63
units
18 July Sales on credit
75
units
22 July Sales on credit
72
units
29 July Sales on credit
76
units
10 July Paid Wages (ignore PAYG tax)
$1,783.00
24 July Paid Wages (ignore PAYG tax)
$2,439.00
09 July Paid rent for the current month
$2,370.00
27 July Paid insurance
$1,088.00
15 July Received advertising invoice (due in 30 days)
$546.00
06 July Purchased computer on credit
$2,250.00
07 July Purchased inventory on credit
22
units at the cost per unit of
$24.00
14 July Purchased inventory on credit
27
units at the cost per unit of
$24.00
20 July Purchased inventory on credit
21
units at the cost per unit of
$27.00
24 July Purchased inventory on credit
28
units at the cost per unit of
$26.00
30 July Purchased inventory on credit
27
units at the cost per unit of
$27.00
07 July Received payment from accounts receivable
$831.00
14 July Received payment from accounts receivable
$976.00
09 July Received payment from accounts receivable
$905.00
