2.3 Use the table below to prepare journal entries to transfer the income and expense accounts...

Transcribed Image Text:

2.3 Use the table below to prepare journal entries to transfer the income and expense accounts to Profit and Loss at 30 June 2022. You should refer to: ⚫ the Accounts listed in the Chart of Accounts file (see file: FNSACC414_NeoZone Chart of Accounts). the assumptions in the email for the accountant (see file: FNSACC414_NeoZone Email for Accountant), in particular: 。 All operating expenses are paid monthly except for insurance which was paid a year in advance on April 1. Nine months of this cost will be prepaid Insurance. • A periodic inventory system is used. On June 30, a stocktake was performed and the inventory balance was determined to be $9,334. | 。 Depreciation to be charged is $250 on computer equipment, $20 on furniture and $90 on software. General Journal of NeoZone for Kids Date Particulars Balance transferred Balances transferred Balance transferred Debit Credit Great South Bank BANK STATEMENT for NeoZone for Kids From: April 1 2022 To: June 30 2022 Date Details Debit Credit Balance 1/4/2022 Balance 1/4/2022 James Cross $15,000.00 $15,000.00 $0.00 Cr Cr 1/4/2022 Eleanor Riley $10,000.00 $25,000.00 Cr 1/4/2022 Brady Chan $15,000.00 $40,000.00 Cr 1/4/2022 Sherville Realty - Rent $440.00 $39,560.00 Cr 1/4/2022 Team Insurance - Prepaid Insurance 1 year $1,650.00 $37,910.00 Cr 1/4/2022 Merrilee Kidstuff $5,830.00 $32,080.00 Cr 1/4/2022 KidsTown Co $3,993.00 $28,087.00 Cr 1/4/2022 Puzzle Rugs $3,162.50 $24,924.50 Cr 2/4/2022 Work from Home Furniture $880.00 $24,044.50 Cr 1/4/2022 Jonathan Webb - Software $1,980.00 $22,064.50 Cr 1/4/2022 Sellit Online Advertising $154.00 $21,910.50 Cr 1/4/2022 Boxit Packaging Supplies - Packaging $829.40 $21,081.10 Cr 5/4/2022 Transfer from Shipit_Au $1,240.80 $22,321.90 Cr 18/4/2022 Transfer from Shipit_Au $2,904.00 $25,225.90 Cr 22/4/2022 Transfer from Shipit_Au $1,784.20 $27,010.10 Cr 28/4/2022 Transfer from Shipit_Au $1,116.50 $28,126.60 Cr 30/4/2022 30/4/2022 Harpo Delivery Service Telenet $148.50 $27,978.10 Cr $363.00 $27,615.10 Cr 30/4/2022 James Cross $500.00 $27,115.10 Cr 30/4/2022 Leona Riley $500.00 $26,615.10 Cr 30/4/2022 Brady Chan $500.00 $26,115.10 Cr 1/5/2022 Sherville Realty - Rent $440.00 $25,675.10 Cr 1/5/2022 Sellit Online Advertising $154.00 $25,521.10 Cr 5/5/2022 Transfer from Shipit_Au $1,702.80 $27,223.90 Cr 5/5/2022 Student Accounting Fees $596.20 $26,627.70 Cr 6/5/2022 April n Indie Toys $1,672.00 $24,955.70 Cr 6/5/2022 Transfer from Shipit_Au $818.40 $25,774.10 Cr 10/5/2022 Transfer from Shipit_Au $1,214.40 $26,988.50 Cr 17/5/2022 Transfer from Shipit_Au $1,133.00 $28,121.50 Cr 19/5/2022 19/5/2022 Puzzle Rugs Merrilee Kidstuff $1,485.00 $26,636.50 Cr $2,464.00 $24,172.50 Cr 19/5/2022 19/5/2022 Puzzle Rugs $1,485.00 $26,636.50 Cr Merrilee Kidstuff $2,464.00 $24,172.50 Cr 21/5/2022 Transfer from Shipit_Au $3,168.00 $27,340.50 Cr 24/5/2022 Transfer from Shipit_Au $837.10 $28,177.60 Cr 28/5/2022 31/5/2022 Transfer from Shipit_Au $2,062.50 $30,240.10 Cr Telenet $357.50 $29,882.60 Cr 31/5/2022 Harpo Delivery Service $189.20 $29,693.40 Cr 31/5/2022 James Cross $500.00 $29,193.40 Cr 31/5/2022 31/5/2022 Leona Riley $500.00 $28,693.40 Cr Brady Chan $500.00 $28,193.40 Cr 31/5/2022 Transfer from Shipit_Au $1,727.00 $29,920.40 Cr 1/6/2022 Sherville Realty - Rent $440.00 $29,480.40 Cr 1/6/2022 Sellit Online Advertising $220.00 $29,260.40 Cr 3/6/2022 Transfer from Shipit_Au $3,363.80 $32,624.20 Cr 10/6/2022 10/6/2022 April n Indie Toys KidsTown Co $3,520.00 $29,104.20 Cr $2,249.50 $26,854.70 Cr 11/6/2022 Transfer from Shipit_Au $1,592.80 $28,447.50 Cr 15/6/2022 Transfer from Shipit_Au $2,948.00 $31,395.50 Cr 17/6/2022 Transfer from Shipit_Au $2,673.00 $34,068.50 Cr 18/6/2022 Transfer from Shipit_Au $3,237.30 $37,305.80 Cr 21/6/2022 Jonathan Webb - Website maintenance $462.00 $36,843.80 Cr 22/6/2022 Transfer from Shipit_Au $3,580.50 $40,424.30 Cr 25/6/2022 Transfer from Shipit_Au $2,143.90 $42,568.20 Cr 30/6/2022 Telenet $387.20 $42,181.00 Cr 30/6/2022 30/6/2022 30/6/2022 Shipit_Au - Order costs Harpo Delivery Service James Cross $785.40 $41,395.60 Cr $214.50 $41,181.10 Cr $500.00 $40,681.10 Cr 30/6/2022 30/6/2022 Leona Riley Brady Chan $500.00 $40,181.10 Cr $500.00 $39,681.10 Cr A. Calculating amounts to be used in financial statements Receipts from sales Domestic Sales International Sales TOTAL Details as shown on bank statement Transfer from Shipit_Au Transfer from Shipit_Au A Total received 31,333.50 7,914.50 39,248.00 Payments for inventory and packaging Purchases Purchases Purchases Purchases Total Purchases Packaging TOTAL Details as shown B Amount net of GST (A × 10/11) C GST Collected B x .1 28,485.00 7,195.00 35,680.00 2,848.50 719.50 3,568.00 on bank statement Total paid Amount net of GST GST Paid Merrilee Kidstuff 8,294.00 7,540.00 754.00 Kids Town Co Puzzle Rugs April n Indie Toys 6,242.50 5,675.00 567.50 4,647.50 4,225.00 422.50 5,192.00 4,720.00 472.00 24,376.00 22,160.00 2,216.00 Boxit Packaging Supplies 829.40 754.00 75.40 25,205.40 22,914.00 2,291.40 3 Payments for indirect costs/overheads Advertising Accounting Fees Rent Order costs Delivery costs Insurance Website maintenance Telephone and Internet TOTAL Details as shown on bank statement Sellit Online Advertising Student Accounting Fees Sherville Realty - Rent Total paid Amount net of GST GST Paid 528.00 480.00 48.00 596.20 542.00 54.20 1,320.00 1,200.00 120.00 Shipit_Au Order costs 785.40 714.00 71.40 Harpo Delivery Service 552.20 502.00 50.20 Team Insurance - Prepaid Insurance 1 year 1,650.00 1,500.00 150.00 Jonathan Webb - Website maintenance Telenet 462.00 420.00 42.00 1,107.70 1,007.00 100.70 7,001.50 6,365.00 636.50 Payments for non-current assets Furniture Software TOTAL Capital contributions James • Leona Brady TOTAL Details as shown on bank statement Total paid Amount net of GST GST Paid Work from Home Furniture 880.00 800.00 80.00 Jonathan Webb - Software 1,980.00 1,800.00 180.00 2,860.00 2,600.00 260.00 Details as shown on bank statement Total received James Cross Leona Riley Brady Chan 15,000.00 10,000.00 15,000.00 40,000.00 Hi, FNSACC414_NeoZone Email for Accountant.pdf 1 page Q Search Thanks for agreeing to prepare our financial statements. Here's some information to assist you. • We have a cash only policy when dealing with suppliers of inventory and pay in full at the time the purchase orders are placed. All inventory is stored at the business premises. • The cash only policy also applies to sales. All sales orders are placed through an online shopping portal called Shipit_Au which is linked to the business website. Shipit_Au collects the money and transfers the funds to the business bank account within one working day. An order fee of 2% of sales revenue is charged quarterly for this service. . Harpo Delivery Service collects the parcels and delivers them to customers. • All sales, inventory purchases and most expenses incur GST of 10%. The exception is depreciation. • The cost of electricity is included in the monthly rent. Operating expenses are paid monthly with the exception of insurance which was paid a year in advance on April 1. • The cost of packaging purchased in April is expensed to the 3-month period. • A periodic inventory system is used. On June 30, a stocktake was performed and the inventory balance was determined to be $9,334. . Depreciation to be charged is $250 on computer equipment, $20 on furniture and $90 on software. • GST owed on June 30 is due for payment on July 28. Let us know if you have any questions. Regards. 2.3 Use the table below to prepare journal entries to transfer the income and expense accounts to Profit and Loss at 30 June 2022. You should refer to: ⚫ the Accounts listed in the Chart of Accounts file (see file: FNSACC414_NeoZone Chart of Accounts). the assumptions in the email for the accountant (see file: FNSACC414_NeoZone Email for Accountant), in particular: 。 All operating expenses are paid monthly except for insurance which was paid a year in advance on April 1. Nine months of this cost will be prepaid Insurance. • A periodic inventory system is used. On June 30, a stocktake was performed and the inventory balance was determined to be $9,334. | 。 Depreciation to be charged is $250 on computer equipment, $20 on furniture and $90 on software. General Journal of NeoZone for Kids Date Particulars Balance transferred Balances transferred Balance transferred Debit Credit Great South Bank BANK STATEMENT for NeoZone for Kids From: April 1 2022 To: June 30 2022 Date Details Debit Credit Balance 1/4/2022 Balance 1/4/2022 James Cross $15,000.00 $15,000.00 $0.00 Cr Cr 1/4/2022 Eleanor Riley $10,000.00 $25,000.00 Cr 1/4/2022 Brady Chan $15,000.00 $40,000.00 Cr 1/4/2022 Sherville Realty - Rent $440.00 $39,560.00 Cr 1/4/2022 Team Insurance - Prepaid Insurance 1 year $1,650.00 $37,910.00 Cr 1/4/2022 Merrilee Kidstuff $5,830.00 $32,080.00 Cr 1/4/2022 KidsTown Co $3,993.00 $28,087.00 Cr 1/4/2022 Puzzle Rugs $3,162.50 $24,924.50 Cr 2/4/2022 Work from Home Furniture $880.00 $24,044.50 Cr 1/4/2022 Jonathan Webb - Software $1,980.00 $22,064.50 Cr 1/4/2022 Sellit Online Advertising $154.00 $21,910.50 Cr 1/4/2022 Boxit Packaging Supplies - Packaging $829.40 $21,081.10 Cr 5/4/2022 Transfer from Shipit_Au $1,240.80 $22,321.90 Cr 18/4/2022 Transfer from Shipit_Au $2,904.00 $25,225.90 Cr 22/4/2022 Transfer from Shipit_Au $1,784.20 $27,010.10 Cr 28/4/2022 Transfer from Shipit_Au $1,116.50 $28,126.60 Cr 30/4/2022 30/4/2022 Harpo Delivery Service Telenet $148.50 $27,978.10 Cr $363.00 $27,615.10 Cr 30/4/2022 James Cross $500.00 $27,115.10 Cr 30/4/2022 Leona Riley $500.00 $26,615.10 Cr 30/4/2022 Brady Chan $500.00 $26,115.10 Cr 1/5/2022 Sherville Realty - Rent $440.00 $25,675.10 Cr 1/5/2022 Sellit Online Advertising $154.00 $25,521.10 Cr 5/5/2022 Transfer from Shipit_Au $1,702.80 $27,223.90 Cr 5/5/2022 Student Accounting Fees $596.20 $26,627.70 Cr 6/5/2022 April n Indie Toys $1,672.00 $24,955.70 Cr 6/5/2022 Transfer from Shipit_Au $818.40 $25,774.10 Cr 10/5/2022 Transfer from Shipit_Au $1,214.40 $26,988.50 Cr 17/5/2022 Transfer from Shipit_Au $1,133.00 $28,121.50 Cr 19/5/2022 19/5/2022 Puzzle Rugs Merrilee Kidstuff $1,485.00 $26,636.50 Cr $2,464.00 $24,172.50 Cr 19/5/2022 19/5/2022 Puzzle Rugs $1,485.00 $26,636.50 Cr Merrilee Kidstuff $2,464.00 $24,172.50 Cr 21/5/2022 Transfer from Shipit_Au $3,168.00 $27,340.50 Cr 24/5/2022 Transfer from Shipit_Au $837.10 $28,177.60 Cr 28/5/2022 31/5/2022 Transfer from Shipit_Au $2,062.50 $30,240.10 Cr Telenet $357.50 $29,882.60 Cr 31/5/2022 Harpo Delivery Service $189.20 $29,693.40 Cr 31/5/2022 James Cross $500.00 $29,193.40 Cr 31/5/2022 31/5/2022 Leona Riley $500.00 $28,693.40 Cr Brady Chan $500.00 $28,193.40 Cr 31/5/2022 Transfer from Shipit_Au $1,727.00 $29,920.40 Cr 1/6/2022 Sherville Realty - Rent $440.00 $29,480.40 Cr 1/6/2022 Sellit Online Advertising $220.00 $29,260.40 Cr 3/6/2022 Transfer from Shipit_Au $3,363.80 $32,624.20 Cr 10/6/2022 10/6/2022 April n Indie Toys KidsTown Co $3,520.00 $29,104.20 Cr $2,249.50 $26,854.70 Cr 11/6/2022 Transfer from Shipit_Au $1,592.80 $28,447.50 Cr 15/6/2022 Transfer from Shipit_Au $2,948.00 $31,395.50 Cr 17/6/2022 Transfer from Shipit_Au $2,673.00 $34,068.50 Cr 18/6/2022 Transfer from Shipit_Au $3,237.30 $37,305.80 Cr 21/6/2022 Jonathan Webb - Website maintenance $462.00 $36,843.80 Cr 22/6/2022 Transfer from Shipit_Au $3,580.50 $40,424.30 Cr 25/6/2022 Transfer from Shipit_Au $2,143.90 $42,568.20 Cr 30/6/2022 Telenet $387.20 $42,181.00 Cr 30/6/2022 30/6/2022 30/6/2022 Shipit_Au - Order costs Harpo Delivery Service James Cross $785.40 $41,395.60 Cr $214.50 $41,181.10 Cr $500.00 $40,681.10 Cr 30/6/2022 30/6/2022 Leona Riley Brady Chan $500.00 $40,181.10 Cr $500.00 $39,681.10 Cr A. Calculating amounts to be used in financial statements Receipts from sales Domestic Sales International Sales TOTAL Details as shown on bank statement Transfer from Shipit_Au Transfer from Shipit_Au A Total received 31,333.50 7,914.50 39,248.00 Payments for inventory and packaging Purchases Purchases Purchases Purchases Total Purchases Packaging TOTAL Details as shown B Amount net of GST (A × 10/11) C GST Collected B x .1 28,485.00 7,195.00 35,680.00 2,848.50 719.50 3,568.00 on bank statement Total paid Amount net of GST GST Paid Merrilee Kidstuff 8,294.00 7,540.00 754.00 Kids Town Co Puzzle Rugs April n Indie Toys 6,242.50 5,675.00 567.50 4,647.50 4,225.00 422.50 5,192.00 4,720.00 472.00 24,376.00 22,160.00 2,216.00 Boxit Packaging Supplies 829.40 754.00 75.40 25,205.40 22,914.00 2,291.40 3 Payments for indirect costs/overheads Advertising Accounting Fees Rent Order costs Delivery costs Insurance Website maintenance Telephone and Internet TOTAL Details as shown on bank statement Sellit Online Advertising Student Accounting Fees Sherville Realty - Rent Total paid Amount net of GST GST Paid 528.00 480.00 48.00 596.20 542.00 54.20 1,320.00 1,200.00 120.00 Shipit_Au Order costs 785.40 714.00 71.40 Harpo Delivery Service 552.20 502.00 50.20 Team Insurance - Prepaid Insurance 1 year 1,650.00 1,500.00 150.00 Jonathan Webb - Website maintenance Telenet 462.00 420.00 42.00 1,107.70 1,007.00 100.70 7,001.50 6,365.00 636.50 Payments for non-current assets Furniture Software TOTAL Capital contributions James • Leona Brady TOTAL Details as shown on bank statement Total paid Amount net of GST GST Paid Work from Home Furniture 880.00 800.00 80.00 Jonathan Webb - Software 1,980.00 1,800.00 180.00 2,860.00 2,600.00 260.00 Details as shown on bank statement Total received James Cross Leona Riley Brady Chan 15,000.00 10,000.00 15,000.00 40,000.00 Hi, FNSACC414_NeoZone Email for Accountant.pdf 1 page Q Search Thanks for agreeing to prepare our financial statements. Here's some information to assist you. • We have a cash only policy when dealing with suppliers of inventory and pay in full at the time the purchase orders are placed. All inventory is stored at the business premises. • The cash only policy also applies to sales. All sales orders are placed through an online shopping portal called Shipit_Au which is linked to the business website. Shipit_Au collects the money and transfers the funds to the business bank account within one working day. An order fee of 2% of sales revenue is charged quarterly for this service. . Harpo Delivery Service collects the parcels and delivers them to customers. • All sales, inventory purchases and most expenses incur GST of 10%. The exception is depreciation. • The cost of electricity is included in the monthly rent. Operating expenses are paid monthly with the exception of insurance which was paid a year in advance on April 1. • The cost of packaging purchased in April is expensed to the 3-month period. • A periodic inventory system is used. On June 30, a stocktake was performed and the inventory balance was determined to be $9,334. . Depreciation to be charged is $250 on computer equipment, $20 on furniture and $90 on software. • GST owed on June 30 is due for payment on July 28. Let us know if you have any questions. Regards.

Answer rating: 100% (QA)

Here are the journal entries to transfer the income and expense accounts to Pr... View the full answer