ACC106 Magic Mufflers GST Registered Exhaust Business

Magic Mufflers is a proprietorship of Mr Innis Hornet who established this new business on 1^st June 2017. Magic Mufflers is a GST-registered muffler and exhaust business that specialises in a small range of high-performance mufflers and exhaust systems. The business sources its products from a number of suppliers and trade expos, and sells to car enthusiasts.

The business currently sells three types of mufflers: Sports SP, Retro RR, and Racer CC:

Innis Hornet, sole proprietor, has established a reputable and growing business with and has employed four staff members. Being an astute businessperson, Innis is using Microsoft EXCEL software to maintain the accounting records of the business transactions during the month of June 2017, which is the last month of the Australian financial year.

1.2 Accounting Policies

1.2.1 Magic Mufflers uses accrual accounting for recording transactions and adjustments.

1.2.2 Magic Mufflers uses a perpetual inventory system with weighted average.

1.2.3 Magic Mufflers prepares quarterly Business Activity Statements (BAS) and remits the net GST liability due to the ATO in the month following the end of each quarter. (Note: as this is a new business, Innis has not yet prepared a BAS and has no liability at the start of June.)

1.2.4 Magic Mufflers has the following depreciation policies:

Equipment and Tools: depreciated over 10 years using reducing balance method at rate of 28% ($1000 residual value and can be pooled together)
Technology and security systems: depreciated over 5 years using straight line method (can pool together; no residual value)
Motor vehicles: depreciated using reducing balance method at the rate of 35% over 8 years ($1000 residual value)

1.2.5 Magic Mufflers pays employee wages on a weekly basis. Wages are paid on the Wednesday for the previous week. The workshop manager and sales manager are full time, earn a weekly wage and work Monday to Friday. The payroll officer and trainee technician are employed on a casual basis and are paid hourly. All employees are paid employer superannuation contribution to their nominated superannuation funds at the rate of 9.5% of gross salary (before deductions). All employees are being paid into the same superannuation fund through an online portal (this means you can account for all superannuation together).

1.2.6 Magic Mufflers records a provision for doubtful debts that equates to 4% of Accounts Receivable balance at the end of the year.

1.2.7 Magic Mufflers records all prepaid expenses as assets (prepayments), and then expenses the portion used as end of year adjustments.

Accounting System

2.2 The business prepares the following Financial Statements:

Balance Sheet – Assets, Liabilities, Owners’ Equity

Income Statement – Revenue, Expenses, Gross/Net profit or loss

Statement of Changes in Equity – Capital, Drawings

2.3 Chart of Accounts
Magic Mufflers Chart of Accounts is shown below.2.4 Employee Payroll

The Schedule of Employees and their pay rates are shown below along with relevant deductions (eg private health and employer superannuation guarantee).

Staff ID	Staff Name	Position	Private Health	ESG	Weekly salary	Hourly rate
EMP001	F Spark	Workshop Manager	$22/wk	9.5%	$2,090
EMP002	L Hornet	Sales Manager	$17/wk	9.5%	$1,880
EMP003	B Heat	Payroll Officer	$0	9.5%		$28
EMP004	C McQueen	Trainee Technician	$0	9.5%		$22

Calendar of relevant months for calculating payroll:

Assume all employees claim the Tax-free threshold and use the calculator included in the EXCEL Student Templates file (Payroll calculator sheet) to calculate the withholding tax.

This can also be found on the ATO

Business Transactions for June 2017

Adjustments for end of financial year 2017

4.1 A physical stocktake of supplies revealed supplies on hand at 30 June totalling $1380.

4.2 Calculate and record the adjusting entry for rent for the end of the month given that June rent (2weeks) has been used up. 4.3 Calculate the amounts for depreciation expense for each of the three types of non-current Assets: equipment & tools; technology & security; vehicles (Estimate expense as though assets held for whole of month of June.)

4.4 Calculate and record the adjusting entry for insurance for the end of the month given that the June portion has been used up. (Estimate by weeks.)

4.5 Calculate and record the adjusting entry for wages payable for employee earnings not yet paid as at 30 June. Apportion weekly salary earners by day; B Heat & C McQueen both worked 5 hours each between Mon 26/6 and Fri 30/6.

4.6 Calculate the Provision for Doubtful Debts based on 4% of accounts receivable at the end of the year and make the necessary adjusting entry.

Accounting Requirements and Instructions

5.1 Spreadsheet software

The file on the course Blackboard site (ACC106 Task 2 Student Templates) contains a series of worksheets that you should use to complete the requirements below. Make changes as required including formulas and links.

5.2 Completing the Accounting Cycle

5.2.1 Record all the business transactions from section 3 above in the relevant special journals and post the Account totals to the relevant ledgers using EXCEL linking function. Use the accounts listed in the Chart of Accounts and enter names of the ledger accounts as required. In the ledgers, use formulas to create running totals. DO NOT POST ADJUSTMENTS yet.

5.2.2 Prepare an ‘Unadjusted’ Trial Balance as at 30 June 2017 by linking balances in the ledger accounts to the Trial Balance. It will be a ‘Live’ Trial Balance but at this point it is unadjusted as the Adjustments have not yet been posted. When completed, check the debit and credit columns are equal in the Trial Balance. Then copy and special paste (as values only) the Trial Balance into the Worksheet columns ‘Unadj Trial Balance’. These should not change now as they are raw figures. (Tip: Use Paste Special to paste in as values.)

5.2.3 Record the end of year Adjustments, listed above at section 4, in the Worksheet and complete the Worksheet by calculating balances in the Adjusted Trial Balance columns. Then complete the Income Statement and Balance Sheet columns in the Worksheet.

5.2.4 Record the Adjustments in the General Journal and post these adjustments to the General Ledger using new accounts as necessary. (This will change the figures in your Trial Balance which should now match the Adjusted Trial Balance figures in the Worksheet.)

5.2.5 Prepare the closing entries in the General Journal, and post these to the General Ledger. (As with adjustments, this will change your Trial Balance figures if you have linked correctly. NOW, your Adjusted Trial Balance figures in the Worksheet will NOT match the Trial Balance figures for the Revenue and Expense accounts and totals.)

Remember: for closing, close revenue and expense accounts to the P&L Closing Account, then close P&L Closing Account to the Capital account and finally, close drawings to the Capital account.

5.2.6 Finally, prepare the Financial Statements for 30 June 2017 by copying or linking the appropriate figures into your Financial Statements. Refer to your textbook or course Learning Materials for guidance on the format of these Statements. For Balance Sheet, use the Classified Balance Sheet in report form as demonstrated on p.184 of the text; and Income Statement and Statement of Changes in Equity as demonstrated on p.240 of the text. (Note, for the Income Statement, there will be three revenue streams including discount received.)

Additional Information

6.1 Number formats

All amounts should be rounded/truncated to two decimal places. Amounts can be displayed without $ sign. (Use $ sign for Financial Statements only).

6.2 Journals and Ledgers

Adjustment & closing entries should be posted from the General Journal to the respective General Ledger accounts at the end of the financial year (June 30)

Total columns in the special journals should be posted to the respective General Ledger accounts at June 30.

Note: In the special journals, all entries that do not belong in one of the account columns aslisted in the template, should be included in the “Other Accounts” columns. These should then be posted on an individual basis to the respective ledger accounts. (Hint: the journal templates contain all the account columns as required for this business. However, not all accounts have been included in the general ledger template – please add as required.)

Remember: When special journals are used, do NOT also use the General Journal for the same transaction. Also, the subledgers for inventory, AR and AP are not linked to the General ledger but the balances should be checked.

6.3 Inventory

Record Inventory purchases and sales in the Subsidiary Ledger Inventory AS THEY OCCUR. As well, record purchases and sales in the relevant journals (using figures in the Inventory record) and post the Inventory totals from these journals to the General Ledger Inventory account at June 30.

6.4 Wages

There are two payroll worksheets that can be used to calculate wages. The payroll calculator from the ATO should be used to estimate weekly PAYG withholding tax for each employee. Use the table in the payroll template to relevant amounts for each employee each week.

6.5 Depreciation

There is a depreciation worksheet with a table that can be used to calculate depreciation for the non-current assets. (Tip: depreciation expense is based on the net cost of the asset.)

Answer:

CASH RECEIPTS JOURNAL—JUNE
Date	Particulars	Debits				Credits
		Cash at Bank	Cost of Sales	Discount Allowed Expense		Accounts Receivable (inc GST)	Inventory	Sales Revenue	Interest Revenue	Other Accounts		GST Collected
				Discount Allowed Expense						Other Accounts
				GST Collected	Net					Account Name	Amt ex GST
				GST Collected	Net					Account Name	Amt ex GST
01-Jun	Est business	2,25,000.00								Capital	2,25,000.00
07-Jun	SP & CC sale	5,820.00	1,648.50				1,648.50	5,290.91				529.09
08-Jun	CC sale	2,200.00	1,037.25				1,037.25	2,000.00				200.00
09-Jun	SP sale	4,290.00	1,948.50				1,948.50	3,900.00				390.00
13-Jun	SP & CC sale	7,870.00	3,373.50				3,373.50	7,154.55				715.45
20-Jun	RR sale	3,790.00	1,728.57				1,728.57	3,445.45				344.55
26-Jun	Hot Rot's Club	5,241.50		2.59	25.91	5,270.00
26-Jun	CC & RR sale	8,600.00	3,999.78				3,999.78	7,818.18				781.82
29-Jun	Interest	1,307.00							1,307.00








Total columns here		2,64,118.50	13,736.10	2.59	25.91	5,270.00	13,736.10	29,609.09	1,307.00		2,25,000.00	2,960.91
					2,77,883.10							2,77,883.10



CASH PAYMENTS JOURNAL—JUNE
Date		Details	Cheq no	Credits						Debits
				Cash at Bank	Discount Received		Wages			Accounts Payable (inc GST)	Inventory	Prepaid Rent	Supplies	Wage Expense	Drawings	Prepaid Insurance	Elect & Gas	GST Paid
				Cash at Bank	GST Paid	Net	PAYG Tax Payable	Private Health Payable	Employer Super Payable	Accounts Payable (inc GST)	Inventory	Prepaid Rent	Supplies	Wage Expense	Drawings	Prepaid Insurance	Elect & Gas	GST Paid
05-Jun		RevCo supplies		2,200.00									2,000.00					200.00
06-Jun		RevHeads Expo		3,872.00							3,520.00							352.00
07-Jun		Totyota		8,870.00						8,870.00
07-Jun		Wages		3,193.00			1,074.00	39.00	409.07					4,715.07
07-Jun		Insurance		9,100.00												8,272.73		827.27
12-Jun		Pro Power		7,173.44	20.17	201.69				7,395.30
12-Jun		Panorama		4,730.00							4,300.00							430.00
13-Jun		Totyota		8,870.00						8,870.00
14-Jun		Rent		6,600.00								6,000.00						600.00
14-Jun		Wages		3,391.00			1,074.00	39.00	427.88					4,931.88
21-Jun		Wages		3,495.00			1,136.00	39.00	443.65					5,113.65
28-Jun		Wages		3,547.00			1,150.00	39.00	449.92					5,185.92
29-Jun		Gas & Electricity		290.00													263.64	26.36
30-Jun		Drawings		920.00											920.00


		Total columns here		66,251.44	20.17	201.69	4,434.00	156.00	1,730.52	25,135.30	7,820.00	6,000.00	2,000.00	19,946.52	920.00	8,272.73	263.64	2,435.64
									72,793.82									72,793.82


									DR	72,793.82
									CR	72,793.82
									difference	0


SALES JOURNAL—JUNE
				Credit		Debit	Credit	Debit
Date		Invoice Number	Details	Sales Revenue	GST Collected	Accounts Receivable	Inventory	Cost of Sales
Date		Invoice Number	Details	Sales Revenue	GST Collected	Accounts Receivable	Inventory	Cost of Sales
17-Jun			Hot Rod's Club	2,590.91	259.09	2,850.00	1,299.00	1,299.00
21-Jun			Rob's Classic Cars	7,090.91	709.09	7,800.00	3,578.00	3,578.00
22-Jun			Hot Rod's Club	2,200.00	220.00	2,420.00	2,212.42	2,212.42




		Total columns here		11,881.82	1,188.18	13,070.00	7,089.42	7,089.42

					DR	20,159.42
					CR	20,159.42
					difference	0

			Debit					Debit	Credit
Date		Details	Inventory	Vehicles	Tech & Security	Equip&Tools		GST Paid	Accounts Payable
Date		Details	Inventory	Vehicles	Tech & Security	Equip&Tools		GST Paid	Accounts Payable
02-Jun		Tools R Us purchases				26,363.64		2,636.36	29,000.00
02-Jun		Pro Power	6,723.00					672.30	7,395.30
04-Jun		Digital sys			28,627.27			2,862.73	31,490.00
04-Jun		Toyota		32,254.55				3,225.45	35,480.00
07-Jun		Pro Power	3,150.00					315.00	3,465.00
19-Jun		Pro Power	9,050.00					905.00	9,955.00
23-Jun		Pro Power	4,660.00					466.00	5,126.00






		Total columns here	23,583.00	32,254.55	28,627.27	26,363.64	-	11,082.85	1,21,911.30
								1,21,911.30	1,21,911.30	totals


								DR	1,21,911.30
								CR	1,21,911.30
								difference	0


GENERAL JOURNAL
Date		Details	Debit	Credit
ADJUSTING ENTRIES
June	30	Supplies Expense	620.00
		Supplies		620.00
		Supplies used up during the year

June	30	Bad Debts expense	312.00
		Provision for Doubtful Debts		312.00
		Provision created @ 4%

June	30	Insurance Expense	477.27
		Prepaid Insurance		477.27
		Insurance expired for June month

June	30	Rent Expense	1,000.00
		Prepaid Rent		1,000.00
		Rent expired for June month

June	30	Depreciation Expense	2,033.03
		Accum Dep - Equip't & Tools		615.15
		Accum Dep - Tech & Security		477.12
		Accum Dep - Vehicles		940.76
		Depreciation for the month of June

June	30	Salary & Wages Expense	3,378.86
		PAYG Tax Payable		654.00
		Superannuation Payable		293.14
		Private health Payable		27.86
		Wages Payable		2,403.86
		Wages payable from 24th to 30th June

			7,821.16	7,821.16

CLOSING ENTRIES

June	30	Sales Revenue	41,490.91
		Discount Received	201.69
		Interest Revenue	1,307.00
		Income Summary		42,999.60
		Credit accounts transferred to Income Summary

June	30	Income Summary	48,882.74
		Cost of Sales		20,825.52
		Electricity & Gas Expense		263.64
		Bad Debts expense		312.00
		Discount Allowed Expense		25.91
		Salary & Wages Expense		23,325.38
		Supplies Expense		620.00
		Rent Expense		1,000.00
		Insurance Expense		477.27
		Depreciation Expense		2,033.03
		Debit accounts transferred to Income Summary

June	30	Capital	5,883.14
		Income Summary		5,883.14
		Loss transferred to Capital account

June	30	Capital	920.00
		Drawings		920.00
		Drawings account closed to Capital account



			98,685.49	98,685.49


Schedule of Accounts Receivable								Schedule of Accounts Payable
as at 30 June 2017								as at 30 June 2017

Account Name		Amount	4%					Account Name		Amount
Hot Rod's Club		0.00						TOOLS R US		29,000.00
Rob's Classic Cars		7,800.00						PRO POWER		18,546.00
								DIGITAL SYS		31,490.00
								TOYOTA		17,740.00
										0.00
Total		7,800.00	312.00					Total		96,776.00


Amount showing in Accounts Receivable General Ledger Trial Balance			7,800.00					Amount showing in Accounts Payable General Ledger Trial Balance			96,776.00
Difference between Schedule total and General Ledger balance			0					Difference between Schedule total and General Ledger balance			0

ACCOUNTS RECEIVABLE SUBSIDIARY LEDGER								ACCOUNTS PAYABLE SUBSIDIARY LEDGER
Hot Rod's Club								TOOLS R US
Date	Details	Invoice No.	Debit	Credit	Balance			Date	Details	Invoice No.	Debit	Credit	Balance
17-Jun	2x Sports SP	xx	2,850.00		2,850.00			02-Jun	tools & other equipt	xx		29,000.00	29,000.00
22-Jun	2x Racer CC	xx	2,420.00		5,270.00								29,000.00
26-Jun	Cash received			5,270.00	0.00								29,000.00
					0.00								29,000.00
					0.00								29,000.00


Rob's Classic Cars								PRO POWER
Date	Details	Invoice No.	Debit	Credit	Balance			Date	Details	Invoice No.	Debit	Credit	Balance
21-Jun	4x Sports SP & 1x RR	xx	7,800.00		7,800.00			02-Jun	Inventory purchased	xx		7,395.30	7,395.30
					7,800.00			07-Jun	Inventory purchased	xx		3,465.00	10,860.30
					7,800.00			12-Jun	Repayment		7,395.30		3,465.00
					7,800.00			19-Jun	Inventory purchased	xx		9,955.00	13,420.00
					7,800.00			23-Jun	Inventory purchased	xx		5,126.00	18,546.00
													18,546.00

								ACCOUNTS PAYABLE SUBSIDIARY LEDGER
Date	Details	Invoice No.	Debit	Credit	Balance			DIGITAL SYS
								Date	Details	Invoice No.	Debit	Credit	Balance
								04-Jun	Computer and security system	xx		31,490.00	31,490.00
													31,490.00
													31,490.00
													31,490.00
													31,490.00

								ACCOUNTS PAYABLE SUBSIDIARY LEDGER
								TOYOTA
								Date	Details	Invoice No.	Debit	Credit	Balance
								04-Jun	Vehicle purchased	xx		35,480.00	35,480.00
								07-Jun	Repayment		8,870.00		26,610.00
								13-Jun	Repayment		8,870.00		17,740.00
													17,740.00
													17,740.00

								ACCOUNTS PAYABLE SUBSIDIARY LEDGER

								Date	Details	Invoice No.	Debit	Credit	Balance









Inventory Reconciliation
30-Jun-17
Item Number		On Hand $
SP	MAGIC SPORTS SP	2,035.29
RR	MAGIC RETRO RR	1,728.57
CC	MAGIC RACER CC	6,813.63
Total		10,577.48
Link to General Ledger Inventory		10,577.48
	Difference	-


MAGIC SPORTS SP	Purchases			Cost of Goods Sold			Inventory on Hand
Date	Unit No.	Unit Cost	Total	Unit No.	Unit Cost	Total	Unit No.	Unit Cost	Total
	Unit No.	Unit Cost	Cost	Unit No.	Unit Cost	Cost	Unit No.	Unit Cost	Cost
02-Jun	7	675	4,725.00				7	675.00	4,725.00
06-Jun	3	590	1,770.00				10	649.50	6,495.00
07-Jun				1	649.50	649.50	9	649.50	5,845.50
09-Jun				3	649.50	1,948.50	6	649.50	3,897.00
13-Jun				2	649.50	1,299.00	4	649.50	2,598.00
17-Jun				2	649.50	1,299.00	2	649.50	1,299.00
19-Jun	5	690	3,450.00				7	678.43	4,749.00
21-Jun				4	678.43	2,713.71	3	678.43	2,035.29
29-Jun							3	678.43	2,035.29
							3	678.43	2,035.29
							3	678.43	2,035.29
							3	678.43	2,035.29
							3	678.43	2,035.29
							3	678.43	2,035.29

MAGIC RETRO RR	Purchases			Cost of Goods Sold			Inventory on Hand
Date	Unit No.	Unit Cost	Total	Unit No.	Unit Cost	Total	Unit No.	Unit Cost	Total
	Unit No.	Unit Cost	Cost	Unit No.	Unit Cost	Cost	Unit No.	Unit Cost	Cost
06-Jun	2	875	1750.00				2	875.00	1,750.00
12-Jun	5	860	4,300.00				7	864.29	6,050.00
20-Jun				2	864.29	1,728.57	5	864.29	4,321.43
21-Jun				1	864.29	864.29	4	864.29	3,457.14
26-Jun				2	864.29	1,728.57	2	864.29	1,728.57
							2	864.29	1,728.57
							2	864.29	1,728.57
							2	864.29	1,728.57
							2	864.29	1,728.57
							2	864.29	1,728.57
							2	864.29	1,728.57
							2	864.29	1,728.57
							2	864.29	1,728.57
							2	864.29	1,728.57
							2	864.29	1,728.57
							2	864.29	1,728.57

MAGIC RACER CC	Purchases			Cost of Goods Sold			Inventory on Hand
Date	Unit No.	Unit Cost	Total	Unit No.	Unit Cost	Total	Unit No.	Unit Cost	Total
	Unit No.	Unit Cost	Cost	Unit No.	Unit Cost	Cost	Unit No.	Unit Cost	Cost
02-Jun	2	999	1,998.00				2	999.00	1,998.00
07-Jun				1	999.00	999.00	1	999.00	999.00
07-Jun	3	1,050	3,150.00				4	1037.25	4,149.00
08-Jun				1	1,037.25	1,037.25	3	1037.25	3,111.75
13-Jun				2	1,037.25	2,074.50	1	1037.25	1,037.25
19-Jun	5	1,120	5,600.00				6	1106.21	6,637.25
22-Jun				2	1,106.21	2,212.42	4	1106.21	4,424.83
23-Jun	4	1165	4,660.00				8	1135.60	9,084.83
26-Jun				2	1135.60	2,271.21	6	1135.60	6,813.63
							6	1135.60	6,813.63
							6	1135.60	6,813.63
							6	1135.60	6,813.63
							6	1135.60	6,813.63
							6	1135.60	6,813.63
							6	1135.60	6,813.63
							6	1135.60	6,813.63


Cash at bank						Accounts Payable						Capital						Sales Revenue
Date	Details	Debit	Credit	Balance		Date	Details	Debit	Credit	Balance		Date	Details	Debit	Credit	Balance		Date	Details	Debit	Credit	Balance
30-Jun	Cash Receipts Journal	2,64,118.50		2,64,118.50		30-Jun	Purchase Journal		1,21,911.30	1,21,911.30		01-Jun	Cash Receipts Journal		2,25,000.00	2,25,000.00		30-Jun	Cash Receipts Journal		29,609.09	29,609.09
30-Jun	Cash Payments Journal		66,251.44	1,97,867.06		30-Jun	Cash Payments Journal	25,135.30		96,776.00		30-Jun	General Journal	5,883.14		2,19,116.86		30-Jun	Sales Journal		11,881.82	41,490.91
				1,97,867.06						96,776.00		30-Jun	General Journal	920.00		2,18,196.86		30-Jun	General Journal	41,490.91		-
				1,97,867.06						96,776.00						2,18,196.86						-
				1,97,867.06						96,776.00						2,18,196.86						-
				1,97,867.06						96,776.00						2,18,196.86						-
				1,97,867.06						96,776.00						2,18,196.86						-
				1,97,867.06						96,776.00						2,18,196.86						-


Accounts Receivable						GST Collected						Drawings						Discount Received
Date	Details	Debit	Credit	Balance		Date	Details	Debit	Credit	Balance		Date	Details	Debit	Credit	Balance		Date	Details	Debit	Credit	Balance
30-Jun	Sales Journal	13,070.00		13,070.00		30-Jun	Cash Receipts Journal		2,960.91	2,960.91		30-Jun	Cash Payments Journal	920.00		920.00		30-Jun	Cash Payments Journal		201.69	201.69
30-Jun	Cash Receipts Journal		5,270.00	7,800.00		30-Jun	Cash Receipts Journal	2.59		2,958.32		30-Jun	General Journal		920.00	-		30-Jun	General Journal	201.69		-
				7,800.00		30-Jun	Sales Journal		1,188.18	4,146.50						-						-
				7,800.00						4,146.50						-						-
				7,800.00						4,146.50						-						-
				7,800.00						4,146.50						-						-
				7,800.00						4,146.50						-						-
				7,800.00						4,146.50						-						-


Provision for Doubtful Debts						PAYG Tax Payable												Interest Revenue
Date	Details	Debit	Credit	Balance		Date	Details	Debit	Credit	Balance								Date	Details	Debit	Credit	Balance
30-Jun	General Journal		312.00	312.00		30-Jun	Cash Payments Journal		4,434.00	4,434.00								30-Jun	Cash Payments Journal		1,307.00	1,307.00
30-Jun				312.00		30-Jun	General Journal		654.00	5,088.00								30-Jun	General Journal	1,307.00		-
				312.00						5,088.00												-
				312.00						5,088.00												-
				312.00						5,088.00												-
				312.00						5,088.00												-
				312.00						5,088.00												-
				312.00						5,088.00												-


Supplies						Superannuation Payable
Date	Details	Debit	Credit	Balance		Date	Details	Debit	Credit	Balance
30-Jun	Cash Payments Journal	2,000.00		2,000.00		30-Jun	Cash Payments Journal		1,730.52	1,730.52
30-Jun	General Journal		620.00	1,380.00		30-Jun	General Journal		293.14	2,023.66
				1,380.00						2,023.66
				1,380.00						2,023.66
				1,380.00						2,023.66
				1,380.00						2,023.66
				1,380.00						2,023.66
				1,380.00						2,023.66


Inventory						Private Health Payable
Date	Details	Debit	Credit	Balance		Date	Details	Debit	Credit	Balance
30-Jun	Cash Payments Journal	7,820.00		7,820.00		30-Jun	Cash Payments Journal		156.00	156.00
30-Jun	Purchase Journal	23,583.00		31,403.00		30-Jun	General Journal		27.86	183.86
30-Jun	Cash Receipts Journal		13,736.10	17,666.90						183.86
30-Jun	Sales Journal		7,089.42	10,577.48						183.86
				10,577.48						183.86
				10,577.48						183.86
				10,577.48						183.86
				10,577.48						183.86


Prepaid Insurance						Wages Payable
Date	Details	Debit	Credit	Balance		Date	Details	Debit	Credit	Balance
30-Jun	Cash Payments Journal	8,272.73		8,272.73		30-Jun	General Journal		2,403.86	2,403.86
30-Jun	General Journal		477.27	7,795.45						2,403.86
				7,795.45						2,403.86
				7,795.45						2,403.86
				7,795.45						2,403.86
				7,795.45						2,403.86
				7,795.45						2,403.86
				7,795.45						2,403.86


Prepaid Rent
Date	Details	Debit	Credit	Balance
30-Jun	Cash Payments Journal	6,000.00		6,000.00
30-Jun	General Journal		1,000.00	5,000.00
				5,000.00
				5,000.00
				5,000.00
				5,000.00
				5,000.00
				5,000.00


GST Paid
Date	Details	Debit	Credit	Balance
30-Jun	Cash Payments Journal	2,435.64		2,435.64
30-Jun	Cash Payments Journal		20.17	2,415.47
30-Jun	Purchase Journal	11,082.85		13,498.31
				13,498.31
				13,498.31
				13,498.31
				13,498.31
				13,498.31


Equipment & Tools
Date	Details	Debit	Credit	Balance
30-Jun	Purchase Journal	26,363.64		26,363.64
				26,363.64
				26,363.64
				26,363.64
				26,363.64
				26,363.64
				26,363.64
				26,363.64


Accum Dep - Equip't & Tools
Date	Details	Debit	Credit	Balance
30-Jun	General Journal		615.15	615.15
				615.15
				615.15
				615.15
				615.15
				615.15
				615.15
				615.15



Trial Balance
As At 30/6/2017
Account Name	Dr	Cr
Cash at Bank	1,97,867.06
Accounts Receivable	7,800.00
Provision for Doubtful Debts		312.00
Supplies	1,380.00
Inventory	10,577.48
Prepaid Insurance	7,795.45
Prepaid Rent	5,000.00
GST Paid	13,498.31
Equipment & Tools	26,363.64
Accum Dep - Equip't & Tools		615.15
Technology & Security	28,627.27
Accum Dep - Tech & Security		477.12
Vehicles	32,254.55
Accum Dep - Vehicles		940.76
Accounts Payable		96,776.00
GST Collected		4,146.50
PAYG Tax Payable		5,088.00
Superannuation Payable		2,023.66
Private health Payable		183.86
Wages Payable		2,403.86
I Hornet, Capital		2,18,196.86
I Hornet, Drawings	-
Sales Revenue		-
Discount Received		-
Interest Revenue		-
Cost of Sales	-
Electricity & Gas Expense	-
Bad Debts expense	-
Discount Allowed Expense	-
Salary & Wages Expense	-
Supplies Expense	-
Rent Expense	-
Insurance Expense	-
Depreciation Expense	-
Income Summary
	3,31,163.76	3,31,163.76


	Unadj Trial Balance			Adjustments			Adjusted Trial Balance			Income Statement			Balance Sheet
	Debit	Credit		Debit	Credit		Debit	Credit		Debit	Credit		Debit	Credit
Cash at Bank	1,97,867.06						1,97,867.06						1,97,867.06
Accounts Receivable	7,800.00						7,800.00						7,800.00
Provision for Doubtful Debts		-			312.00			312.00						312.00
Supplies	2,000.00				620.00		1,380.00						1,380.00
Inventory	10,577.48						10,577.48						10,577.48
Prepaid Insurance	8,272.73				477.27		7,795.45						7,795.45
Prepaid Rent	6,000.00				1,000.00		5,000.00						5,000.00
GST Paid	13,498.31						13,498.31						13,498.31
Equipment & Tools	26,363.64						26,363.64						26,363.64
Accum Dep - Equip't & Tools		-			615.15			615.15						615.15
Technology & Security	28,627.27						28,627.27						28,627.27
Accum Dep - Tech & Security		-			477.12			477.12						477.12
Vehicles	32,254.55						32,254.55						32,254.55
Accum Dep - Vehicles		-			940.76			940.76						940.76
Accounts Payable		96,776.00						96,776.00						96,776.00
GST Collected		4,146.50						4,146.50						4,146.50
PAYG Tax Payable		4,434.00			654.00			5,088.00						5,088.00
Superannuation Payable		1,730.52			293.14			2,023.66						2,023.66
Private health Payable		156.00			27.86			183.86						183.86
Wages Payable		-			2,403.86			2,403.86						2,403.86
I Hornet, Capital		2,25,000.00						2,25,000.00						2,25,000.00
I Hornet, Drawings	920.00						920.00						920.00
Sales Revenue		41,490.91						41,490.91			41,490.91
Discount Received		201.69						201.69			201.69
Interest Revenue		1,307.00						1,307.00			1,307.00
Cost of Sales	20,825.52						20,825.52			20,825.52
Electricity & Gas Expense	263.64						263.64			263.64
Bad Debts expense	-			312.00			312.00			312.00
Discount Allowed Expense	25.91						25.91			25.91
Salary & Wages Expense	19,946.52			3,378.86			23,325.38			23,325.38
Supplies Expense	-			620.00			620.00			620.00
Rent Expense	-			1,000.00			1,000.00			1,000.00
Insurance Expense	-			477.27			477.27			477.27
Depreciation Expense	-			2,033.03			2,033.03			2,033.03

	3,75,242.62	3,75,242.62		7,821.16	7,821.16		3,80,966.51	3,80,966.51		48,882.74	42,999.60		3,32,083.76	3,37,966.91
Profit or Loss										0	5,883.14		5,883.14	0
										48,882.74	48,882.74		3,37,966.91	3,37,966.91


FINANCIAL STATEMENTS

Magic Mufflers
Income Statement
For the Period ended on 30 June 2017
Particulars				Amount
SALES
	Sales Revenue		$ 41,490.91
	Discount Received		$ 201.69
	Interest Revenue		$ 1,307.00	$ 42,999.60

Less: Cost of Sales				$ 20,825.52

Gross Profit				$ 22,174.08


EXPENSES
Administrative Expenses
	Electricity & Gas Expense	$ 263.64
	Discount Allowed Expense	$ 25.91
	Salary & Wages Expense	$ 23,325.38
	Supplies Expense	$ 620.00
	Rent Expense	$ 1,000.00
	Insurance Expense	$ 477.27
	Depreciation Expense	$ 2,033.03	$ 27,745.23

Financial Expenses
	Bad Debts expense	$ 312.00	$ 312.00	$ 28,057.23

Loss for the period				-$ 5,883.14


	Magic Mufflers
	Statement of Changes in Equity
	For the Period ended on 30 June 2017
	Particulars	Amount
	Opening Capital	$ -
	Capital introduced	$ 2,25,000.00
	Drawings made	-$ 920.00
	Loss incurred	-$ 5,883.14
	Closing Capital	$ 2,18,196.86


	Magic Mufflers
	Balance Sheet
	As at 30 June 2017
	Particulars			Amount
	ASSETS

	Non-Current Assets:
	Equipment & Tools	$ 26,363.64
	Accum Dep - Equip't & Tools	$ 615.15	$ 25,748.48
	Technology & Security	$ 28,627.27
	Accum Dep - Tech & Security	$ 477.12	$ 28,150.15
	Vehicles	$ 32,254.55
	Accum Dep - Vehicles	$ 940.76	$ 31,313.79	$ 85,212.42

	Current Assets:
	Cash at Bank		$ 1,97,867.06
	Accounts Receivable	$ 7,800.00
	Provision for Doubtful Debts	$ 312.00	$ 7,488.00
	Supplies		$ 1,380.00
	Inventory		$ 10,577.48
	Prepaid Insurance		$ 7,795.45
	Prepaid Rent		$ 5,000.00
	GST Paid		$ 13,498.31	$ 2,43,606.31

	Total Assets			$ 3,28,818.73

	LIABILITIES

	Current Liabilities:
	Accounts Payable		$ 96,776.00
	GST Collected		$ 4,146.50
	PAYG Tax Payable		$ 5,088.00
	Superannuation Payable		$ 2,023.66
	Private health Payable		$ 183.86
	Wages Payable		$ 2,403.86	$ 1,10,621.88

	Total Liabilities			$ 1,10,621.88

	Net Assets			$ 2,18,196.86

	OWNER'S EQUITY
	Capital			$ 2,18,196.86

	Total Equity			$ 2,18,196.86


Jun-17
Mon	Tue	Wed	Thu	Fri	Sat	Sun
			1	2	3	4
5	6	7	8	9	10	11
12	13	14	15	16	17	18
19	20	21	22	23	24	25
26	27	28	29	30


Jul-17
Mon	Tue	Wed	Thu	Fri	Sat	Sun
					1	2
3	4	5	6	7	8	9
10	11	12	13	14	15	16
17	18	19	20	21	22	23
24	25	26	27	28	28	30
31


					Credit				Debit
Pay Date	per week	per hour	no. hours	Gross Pay	Less PAYG	P Health	Net Pay	Em'r Super	Wage Exp
F Spark	$ 2,090.00			$ 2,090.00	$ 578.00	$ 22.00	$ 1,490.00	$ 198.55	$ 2,288.55
L Hornet	$ 1,880.00			$ 1,880.00	$ 496.00	$ 17.00	$ 1,367.00	$ 178.60	$ 2,058.60
B Heat		28	12	$ 336.00	$ -	$ -	$ 336.00	$ 31.92	$ 367.92
C McQueen		22	0	$ -		$ -	$ -	$ -	$ -
Wage Payable					$ 1,074.00	$ 39.00	$ 3,193.00	$ 409.07	$ 4,715.07

					Credit				Debit
Pay Date	per week	per hour	no. hours	Gross Pay	Less PAYG	P Health	Net Pay	Em'r Super	Wage Exp
F Spark	$ 2,090.00			$ 2,090.00	$ 578.00	$ 22.00	$ 1,490.00	$ 198.55	$ 2,288.55
L Hornet	$ 1,880.00			$ 1,880.00	$ 496.00	$ 17.00	$ 1,367.00	$ 178.60	$ 2,058.60
B Heat		28	12	$ 336.00	$ -	$ -	$ 336.00	$ 31.92	$ 367.92
C McQueen		22	9	$ 198.00	$ -	$ -	$ 198.00	$ 18.81	$ 216.81
Wage Payable					$ 1,074.00	$ 39.00	$ 3,391.00	$ 427.88	$ 4,931.88

					Credit				Debit
Pay Date	per week	per hour	no. hours	Gross Pay	Less PAYG	P Health	Net Pay	Em'r Super	Wage Exp
F Spark	$ 2,090.00			$ 2,090.00	$ 578.00	$ 22.00	$ 1,490.00	$ 198.55	$ 2,288.55
L Hornet	$ 1,880.00			$ 1,880.00	$ 496.00	$ 17.00	$ 1,367.00	$ 178.60	$ 2,058.60
B Heat		28	3	$ 84.00	$ -	$ -	$ 84.00	$ 7.98	$ 91.98
C McQueen		22	28	$ 616.00	$ 62.00	$ -	$ 554.00	$ 58.52	$ 674.52
Wage Payable					$ 1,136.00	$ 39.00	$ 3,495.00	$ 443.65	$ 5,113.65

					Credit				Debit
Pay Date	per week	per hour	no. hours	Gross Pay	Less PAYG	P Health	Net Pay	Em'r Super	Wage Exp
F Spark	$ 2,090.00			$ 2,090.00	$ 578.00	$ 22.00	$ 1,490.00	$ 198.55	$ 2,288.55
L Hornet	$ 1,880.00			$ 1,880.00	$ 496.00	$ 17.00	$ 1,367.00	$ 178.60	$ 2,058.60
B Heat		28	3	$ 84.00	$ -	$ -	$ 84.00	$ 7.98	$ 91.98
C McQueen		22	31	$ 682.00	$ 76.00	$ -	$ 606.00	$ 64.79	$ 746.79
Wage Payable					$ 1,150.00	$ 39.00	$ 3,547.00	$ 449.92	$ 5,185.92


					Credit				Debit
Pay Date	per week	per hour	no. hours	Gross Pay	Less PAYG	P Health	Net Pay	Em'r Super	Wage Exp
F Spark	$ 2,090.00			$ 1,492.86	$ 353.00	$ 15.71	$ 1,124.14	$ 141.82	$ 1,634.68
L Hornet	$ 1,880.00			$ 1,342.86	$ 301.00	$ 12.14	$ 1,029.71	$ 127.57	$ 1,470.43
B Heat		28	5	$ 140.00	$ -	$ -	$ 140.00	$ 13.30	$ 153.30
C McQueen		22	5	$ 110.00	$ -	$ -	$ 110.00	$ 10.45	$ 120.45
Wage Payable					$ 654.00	$ 27.86	$ 2,403.86	$ 293.14	$ 3,378.86



Depreciation						reducing balance method
	R/B rate	R/Val	Life/yrs	Net value
Equip & Tools		$ 1,000.00	10	$ 26,363.64
R/B	Rate	B/Val	Dep/yr	Acc Dep	C/V		1 month
1	28.00%	$ 26,363.64	$ 7,381.82	$ 7,381.82	$ 18,981.82		$ 615.15
2	28.00%	$ 18,981.82	$ 5,314.91	$ 12,696.73	$ 13,666.91					`=	0.279059425
3	28.00%	$ 13,666.91	$ 3,826.73	$ 16,523.46	$ 9,840.17					`=	28%
4	28.00%	$ 9,840.17	$ 2,755.25	$ 19,278.71	$ 7,084.93
5	28.00%	$ 7,084.93	$ 1,983.78	$ 21,262.49	$ 5,101.15	5000
6	28.00%	$ 5,101.15	$ 1,428.32	$ 22,690.81	$ 3,672.83
7	28.00%	$ 3,672.83	$ 1,028.39	$ 23,719.20	$ 2,644.43
8	28.00%	$ 2,644.43	$ 740.44	$ 24,459.64	$ 1,903.99
9	28.00%	$ 1,903.99	$ 533.12	$ 24,992.76	$ 1,370.87
10	28.00%	$ 1,370.87	$ 383.84	$ 25,376.61	$ 987.03


Technology & Security - all		S/Val	Life/hrs	Net value		Straight Line
S/L		$ -	5	$ 28,627.27
		Actual	Dep/yr	Acc Dep	C/V
1	20.00%	$ 28,627.27	$ 5,725.45	$ 5,725.45	$ 22,901.82		$ 477.12
2	20.00%	$ 28,627.27	$ 5,725.45	$ 11,450.91	$ 17,176.36
3	20.00%	$ 28,627.27	$ 5,725.45	$ 17,176.36	$ 11,450.91
4	20.00%	$ 28,627.27	$ 5,725.45	$ 22,901.82	$ 5,725.45
5	20.00%	$ 28,627.27	$ 5,725.45	$ 28,627.27	$ -


						$ 28,627.27



	R/B rate	R/Val	Life/yrs	Net value		reducing balance method
Vehicles		$ 1,000.00	8	$ 32,254.55
R/B	Rate	B/Val	Dep/yr	Acc Dep	C/V
1	35.00%	$ 32,254.55	$ 11,289.09	$ 11,289.09	$ 20,965.45		$ 940.76
2	35.00%	$ 20,965.45	$ 7,337.91	$ 18,627.00	$ 13,627.55
3	35.00%	$ 13,627.55	$ 4,769.64	$ 23,396.64	$ 8,857.90					`=	-$ 0.00
4	35.00%	$ 8,857.90	$ 3,100.27	$ 26,496.91	$ 5,757.64					`=	35%

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