prepare journal entries, trial balance, income statement and balance sheet. 

July 1 Sold 4 ovens as a cash sale, $4,840 (including GST $440).

July 1 Purchased a computer on credit from Review Computers, $1,386 (including GST $126).

 July 2 Purchased office supplies with cheque number 58, $1,100 (including GST $100). Record this using the Office Supplies account.

 July 2 Sold 10 dishwashers on credit to Burrow Properties, invoice number MA32, $7,700 (including GST $700).

July 3 Paid for electrical repairs for $605 (including GST $55) with cheque number 59. 

July 3 Purchased 40 dishwashers on credit from Westinghouse, $15,400 (including GST $1,400).

 July 4 Paid for prepaid insurance of $1,584 for 12 months effective 1 July (including GST $144) with cheque number 60.

 July 4 Hired a new staff member who will start on August 1 with an annual salary of $100,000. 

July 5 Sam withdrew $1,000 cash for personal use with cheque number 61 (no GST is applicable.) 

July 5 Paid the monthly net wages of the staff of $4,200 with cheque number 62 (no GST is applicable.) See transaction 21 for the PAYG tax withheld from staff wages. 

July 10 Sold 6 Refrigerators and 30 washing machines on credit to Graham Developments Invoice Number MA33, $38,610 (including GST $3,510).

 July 11 Purchased 20 Washing Machines on credit from LG, $ 9,350 (including GST $850).

 July 14 Paid Bayside Accountants the balance owing of $3,850 with cheque number 63. 

July 21 Paid LG with a part payment of $16,500 with cheque number 64.

July 21 Issued a credit note to Graham Developments for return of 2 Washing Machines, Credit Number 14, $1,870 (including GST $170). (Retain as an available credit in Reckon). 

July 22 Received $23,120 from Burrow Properties as payment on account. 

July 26 Paid the monthly telephone and internet expense with cheque number 65, $924 (including GST $84).

 July 26 Invoiced Studio Apartments for 20 Washing Machines and 20 dishwashers, Invoice Number MA34, $34,100 (including GST $3,100).

 July 28 Received $7,000 on account from Graham Developments. 

July 28 Returned 2 dishwashers to Westinghouse and received a credit of $770 (including GST $70). July 28 Sold 6 Refrigerators as a cash sale, $10,560 (including GST $960). 

July 28 Signed a 6-month agreement to rent additional storage space from September 1, 2023 for $2,090 monthly (including GST $190). 

 July 28 Sam lodged his quarterly Business Activity Statement (BAS return) and paid cheque number 66 to the ATO for a total of $17,630 for 2 items: 

1) GST Clearing Tax Payable GST of $12,450 and 

2) PAYG tax payable of $5,180. 

(Excel: Record each item in a separate row) (Reckon: Use Write Cheques with a separate line each for GST & PAYG). 

July 30 Paid for utilities expense for July with cheque number 67, $814 (including GST $74)

July 30 Paid for electrical repairs for $297, with cheque number 68 (including GST $27). 

July 31 Received $22,000 from Studio Apartments as payment on account.

 July 31 Bank Statement: Paid bank charges of $40 (no GST applicable). (Use Write Cheques function in Reckon) 

July 31 Record the general journal entry below for $2,060 for the total PAYG tax withheld on the monthly wages. (PAYG tax payable is tax withheld from staff wages owed to the government.) Wages expense Dr $2,060 PAYG Tax Payable Cr $2,060 

July 31 Sam contributed $2,500 of capital into the business bank account. 

July 31 Sam got a quote to install new LED lights in the store for $3,300 (including GST $300). 

 

Note: Adjusting entries are prepared monthly Use the letters (A) to (E) below in your Excel worksheet for the Letter of Adjustment column to ensure that you have a debit and a matching credit for each adjustment.

 A) Accrued Wages Wages owing as at 31 July are $850. 

B) Insurance Noted in the transactions above,12 months of insurance was prepaid on July 4. 

C) Depreciation - Store Equipment Annual Depreciation on Store Equipment has been calculated at $5,928. 

D) Depreciation - Computers Annual Depreciation on Computers has been calculated at $7,440. 

E) Office Supplies Expense On 31 July, a stocktake of office supplies was conducted and there was $880 of supplies remaining. 

F) Rent On June 30, two (2) months of rent was prepaid. (Refer Prepaid Rent general ledger account for the amount paid).

Answer rating: 100% (QA)

To prepare journal entries a trial balance income statement and balance sheet you can follow the provided transactions and adjustments Ill provide you with the journal entries first and then you can u... View the full answer