The Live Bait Retail Company Limited started trading on 1 July 2013 and at 30 June 2014 had the following summary. 30 June 2014 Fixed Assets PPE 900 Current Assets Inventories 200 Cash 400 Total Assets 1,500 Long-term Liabilities Bank Loan 500 Total Liabilities 500 Equity Common Stock 750 Retained Earnings 250 Total Equity 1,000 Total Liabilities and Equity 1,500 During the year ended 30 June 2015 (i.e., second year of operation), the company engages in the following transactions: 1. Purchase of bait on credit for $700 2. Sale of bait originally costing $600 for $1,200 of which $800 is on credit, the remainder is in cash 3. Payment of salaries to office staff ($85) and van driver ($75), both in cash 4. Payment of interest on bank loan of $100. 5. Increase bank loan by $500 6. Payment of 80% of accounts payable, collection of 80% of accounts receivables. In addition, as a result of these transactions, the company will engage in the following two transactions which need to be recorded in the 2014/15 accounts: 7. Tax (at a rate of 33%) is payable on the company's profit before tax and is due on 31 March 2016

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Accounting Transactions for Live Bait Retail Company Limited Transactions Purchase of bait on credit ... View the full answer