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. 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