Below is the balance sheet that you prepared for JB Hi-Fi as at 30 June 2022, as part of the tutorial activity discussed in week 2. All numbers are in millions of Australian Dollars.

JB Hi-Fi Balance sheet as at 30 June 2022

$ million

ASSETS Current assets Cash 400 Accounts receivable 150 Inventories 1200 Total current assets 1750 Non-current assets Plant and equipment 200

Accumulated depreciation - Plant & Equipment (50) Total non-current assets 150 Total Assets 1900

LIABILITIES Current liabilities Account payable 760 Wages payable 110 Current tax payable 70 Total current liabilities 940 Non-current liabilities Borrowings 60 Total non-current liabilities 60 Total Liabilities 1000

EQUITY Share capital 640 Retained profits 260 Total Equity 900

Total Liabilities & Equity 1900

During the financial year ending 30 June 2023, the following transactions occurred:

1.On January 1st 2023, prepaid the annual rent for all of its stores, amounting to a total of $14 million. 2.Sold inventory costing $400 million for $480 million. Of the sales made, 80% were paid in cash. 3.Collected all receivables that were outstanding at the beginning of the year, as well as 75% of the sales made on credit within the year. 4.Paid $200 million of the accounts payable outstanding at the beginning of the year. 5.Declared and paid dividends totalling $200 million. 6.On Jan 1st 2023, $100 million of surplus cash was invested in a 5-year term deposit at an annual interest rate of 4%. No interest has been received on this deposit to date. 7.Paid $150 million in wages. 8.Paid $80 million in taxes. 9.JB Hi-Fi depreciates its plant and equipment at an annual rate of 5%. No new plant and equipment were acquired during the year.

Record all the above transactions using transaction analysis.

Answer rating: 100% (QA)

Sure Here are the transactions recorded using transaction analysis 1 Prepaid Rent ... View the full answer