2.3 Use the table below to prepare journal entries to transfer the income and expense accounts to Profit and Loss at 30 June 2022. You should refer to: • the Accounts listed in the Chart of Accounts file (see file: FNSACC414_NeoZone Chart of Accounts). • the assumptions in the email for the accountant (see file: FNSACC414_NeoZone Email for Accountant), in particular: 。 All operating expenses are paid monthly except for insurance which was paid a year in advance on April 1. Nine months of this cost will be prepaid Insurance. ° A periodic inventory system is used. On June 30, a stocktake was performed and the inventory balance was determined to be $9,334. 。 Depreciation to be charged is $250 on computer equipment, $20 on furniture and $90 on software. Date Particulars Balance transferred Balances transferred Balance transferred Debit Credit Hi, NeoZone for Kids Assets Current Assets Income Operating Income 1-1100 Cash at Bank 4-1100 Sales Revenue 1-1300 Inventory Other Income 1-1500 Prepaid Insurance 4-2100 Interest Received Non-Current Assets Expenses Cost of Sales 1-2100 Equipment 5-1100 Purchases 1-2150 Equipment - Accum Depreciation 5-1200 Packaging 1-2200 Furniture Marketing Expenses 1-2250 Furniture Accum Depreciation 6-1100 Advertising 1-2300 Software 6-1200 Delivery Costs 1-2350 Software Accum Depreciation Administration Expenses Liabilities Current Liabilities 6-1320 Accounting Fees 2-2220 GST Collected 6-1350 Rent 2-2250 GST Paid 6-1400 Order Costs Non-Current Liabilities 6-1450 Insurance 2-5100 Bank Loan 6-1350 Depreciation Equity 6-1500 Website maintenance 3-1100 James, Capital 6-1550 Telephone and internet 3-1120 James, Current 6-1600 General office expenses 3-1140 James, Drawings Financial Expenses 3-2100 Leona, Capital 6-1800 Interest 3-2120 Leona, Current 6-1850 Bank Charges 3-2140 Leona, Drawings 3-3100 Brady, Capital 3-3120 Brady, Current 3-3140 Brady, Drawings 3-3000 Profit and Loss Summary 3-3200 Profit and Loss Appropriation Thanks for agreeing to prepare our financial statements. Here's some information to assist you. • We have a cash only policy when dealing with suppliers of inventory and pay in full at the time the purchase orders are placed. All inventory is stored at the business premises. • The cash only policy also applies to sales. All sales orders are placed through an online shopping portal called Shipit_Au which is linked to the business website. Shipit_Au collects the money and transfers the funds to the business bank account within one working day. An order fee of 2% of sales revenue is charged quarterly for this service. • Harpo Delivery Service collects the parcels and delivers them to customers. • All sales, inventory purchases and most expenses incur GST of 10%. The exception is depreciation. • The cost of electricity is included in the monthly rent. • Operating expenses are paid monthly with the exception of insurance which was paid a year in advance on April 1. ⚫ The cost of packaging purchased in April is expensed to the 3-month period. • A periodic inventory system is used. On June 30, a stocktake was performed and the inventory balance was determined to be $9,334. • Depreciation to be charged is $250 on computer equipment, $20 on furniture and $90 on software. • GST owed on June 30 is due for payment on July 28. Let us know if you have any questions. Regards, James, Leona and Brady.