Mary Muscato opened a wine store on 1 June 2025. The business trades under the name of Wine to Dine and uses a perpetual inventory system to account for its inventory. Assume no GST requirements. All credit sales are made on the following terms: 2/10, n/30.

At the end of the month, Mary Muscato undertook a physical stocktake and calculated that inventory worth $79 800 was still on hand and that promotional supplies of $8600 were still in storage. She also estimated that electricity usage for the month was $500 and that telephone usage for the month was $320. No tax invoices had been received from either supplier by 30 June.

Required

(a) Prepare general journal entries for June 2025 for the above transactions, including any adjusting entries at the end of the month.

(b) Calculate the profit for the business for the month of June 2025.

(c) Explain how the entries in A would differ if the business had used the periodic inventory system.

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Transactions for the business in June 2025 were as follows. June 1 2 3. 4 Muscato invested $185 000 cash and $48 720 of store equipment into the business. The store equipment is to be depreciated evenly over 7 years. Purchased an inventory of wine from Blacktown Winery on credit for $55 200; terms: 2/15, n/30. Paid $1800 rent for June 2025. Purchased an additional inventory of wine from Hall Wines on credit for $38 000; terms: n/30. 5 Sold some merchandise to C. Tamarara on credit for $14 000. Cost of this 60 merchandise was $9200. Purchased promotional supplies for cash from G. Epping for $11 440. 8 Purchased a supply of white wines from Voss Vineyard for $27 600 cash. 10 Sold merchandise costing $21 100 to Oatville Hotel on credit for $28 000. 12 Purchased wine from Gladwood Estate on credit for $23 000; terms: 2/10, n/30. 14 Paid Blacktown Winery for 2 June purchase. 15 Received payment from C. Tamarara in payment of the account. The discount