28 Required: 1. 2. 3. 4. 5. amount. Purchased a computer on credit for $2,200. Journalise the preceding transactions for Larkspur Furniture using multi-column special journals. Post transaction amounts to ledger accounts and prepare a trial balance. Complete the GST Section of the Business Activity Statement for July. As you are only reporting for one month, you will need to use the quarterly reporting option on the BAS statement. Journalise payment of GST to the ATO on August 1, 2021. A junior accountant is confused about why GST appears on the statement of financial position but not the statement of financial performance. Explain how and why this happens.
28 Required: 1. 2. 3. 4. 5. amount. Purchased a computer on credit for $2,200. Journalise the preceding transactions for Larkspur Furniture using multi-column special journals. Post transaction amounts to ledger accounts and prepare a trial balance. Complete the GST Section of the Business Activity Statement for July. As you are only reporting for one month, you will need to use the quarterly reporting option on the BAS statement. Journalise payment of GST to the ATO on August 1, 2021. A junior accountant is confused about why GST appears on the statement of financial position but not the statement of financial performance. Explain how and why this happens.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![ASSIGNMENT INFORMATION
Question 1. Larkspur Furniture uses a perpetual inventory system and pays GST on an
accrual basis. Larkspur engaged in the following transactions during July 2021.
Transactions are inclusive of GST where relevant.
July
2.
3.
2
5
8
4.
5.
9
10
11
12
14
24
28
Required:
1.
27
Purchased inventory for cash, $1 045
Purchased store supplies on credit for $495
Purchased inventory of $3 300 on account. Freight charges of
$253, were added to the purchase invoice.
Sold goods for cash, $1 320. The cost of these goods was $700.
Received the electricity bill, $302.50.
Returned $220, of the inventory purchased on 8 July. It was
damaged in transit.
Purchased inventory for cash for $3 663.
Sold inventory on credit terms $11 160, less a $600 quantity
discount (cost, $5000). Note: GST applies after the discount.
Received returned inventory from the 14 July sale, $440. Larkspur
Furniture had despatched the wrong goods by mistake. A credit note was
issued. Larkspur's cost of the inventory received was $250. Ignore
previous quantity discount.
Borrowed $5,000 from the bank. Signed a bill payable to the bank for this
amount.
Purchased a computer on credit for $2,200.
Journalise the preceding transactions for Larkspur Furniture using multi-column
special journals.
Post transaction amounts to ledger accounts and prepare a trial balance.
Complete the GST Section of the Business Activity Statement for July. As you
are only reporting for one month, you will need to use the quarterly reporting
option on the BAS statement.
Journalise payment of GST to the ATO on August 1, 2021.
A junior accountant is confused about why GST appears on the statement of
financial position but not the statement of financial performance. Explain how
and why this happens.
Chart of Accounts
101 Cash at bank
102 Inventory
103
104 Accounts receivable
150 Office Equipment
Store supplies
201 Accounts payable
202 Bill payable
203
204
401
402
501
601
602
GST collected
GST paid
Sales revenue
Sales returns and allowances
Cost of goods sold
Freight-in
Electricity expense
2](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ff6637ee8-f0ad-4f62-aabf-5892c8a6b763%2F918d6dc3-312d-4cdb-bb38-427176aff09a%2Fnm73c3_processed.jpeg&w=3840&q=75)
Transcribed Image Text:ASSIGNMENT INFORMATION
Question 1. Larkspur Furniture uses a perpetual inventory system and pays GST on an
accrual basis. Larkspur engaged in the following transactions during July 2021.
Transactions are inclusive of GST where relevant.
July
2.
3.
2
5
8
4.
5.
9
10
11
12
14
24
28
Required:
1.
27
Purchased inventory for cash, $1 045
Purchased store supplies on credit for $495
Purchased inventory of $3 300 on account. Freight charges of
$253, were added to the purchase invoice.
Sold goods for cash, $1 320. The cost of these goods was $700.
Received the electricity bill, $302.50.
Returned $220, of the inventory purchased on 8 July. It was
damaged in transit.
Purchased inventory for cash for $3 663.
Sold inventory on credit terms $11 160, less a $600 quantity
discount (cost, $5000). Note: GST applies after the discount.
Received returned inventory from the 14 July sale, $440. Larkspur
Furniture had despatched the wrong goods by mistake. A credit note was
issued. Larkspur's cost of the inventory received was $250. Ignore
previous quantity discount.
Borrowed $5,000 from the bank. Signed a bill payable to the bank for this
amount.
Purchased a computer on credit for $2,200.
Journalise the preceding transactions for Larkspur Furniture using multi-column
special journals.
Post transaction amounts to ledger accounts and prepare a trial balance.
Complete the GST Section of the Business Activity Statement for July. As you
are only reporting for one month, you will need to use the quarterly reporting
option on the BAS statement.
Journalise payment of GST to the ATO on August 1, 2021.
A junior accountant is confused about why GST appears on the statement of
financial position but not the statement of financial performance. Explain how
and why this happens.
Chart of Accounts
101 Cash at bank
102 Inventory
103
104 Accounts receivable
150 Office Equipment
Store supplies
201 Accounts payable
202 Bill payable
203
204
401
402
501
601
602
GST collected
GST paid
Sales revenue
Sales returns and allowances
Cost of goods sold
Freight-in
Electricity expense
2
![Simplified BAS - Supplies & Acquisitions
Goods and services tax for the period 01/07/2004 to 31/07/2004
GST accounting method Non-Cash (accruals)
Option 1: Actual GST report quarterly
Total sales & income &
other supplies
G1 $
Does the amount shown
at G1 include GST?
Exports G2 $
Other GST-free supplies G3 $
Capital acquisitions G10 $
Other acquisitions G11 $
Show actual GST at 1A and 1B in the Summary
on the back
Summary of amounts
O yes O no
Amounts you owe to the ATO
Goods and services tax payable 1A $
Wine equalisation tax payable 1C $
1E $
Luxury car tax payable
Pay As You Go withholding
Pay As You Go instalment
Fringe benefits tax
instalment
Deferred company/fund
instalment
4 $
54 $
6A $
7 $
1A +1C+1E+4+5A +6A +7 84 $
Payment or refund?
Is 8A more than 8B?
BI
Yes
Yes
No
O Option 2: Actual GST report annually
Total sales & income &
other supplies
G1 $
Simplified BAS Debits & Credits
0
0
0
0
Does the amount shown
at G1 include GST?
Show actual GST at 1A and 1B in the Summary on
the back
Option 3: GST Instalment
If varying your amount, complete G22, G23, G24
ATO instalment amount G21 $
If varying your amount, complete G22, G23, G24
Estimated GST for the year G22 $
Varied GST instalment
G23 $
Show at 1A in Summary
Reason for variation
G24
Amounts the ATO owes you
Credit for goods and services tax paid 1B $
Wine equalisation tax refundable 1D $
Luxury car tax refundable
1F $
Credit arising from reduced Pay
As You Go instalments.
Credit arising from reduced
fringe benefits tax instalments
yes no
18+1D +1F +58 +68
5B
$
6B $
Show 84 minus 88 in 9. This amount is payable to the ATO
Show 88 minus 8A in 9. This amount is refundable to you
(or offset against any other tax debt you have)
88 $
Your payment or refund amount 9 $
0
0
3](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ff6637ee8-f0ad-4f62-aabf-5892c8a6b763%2F918d6dc3-312d-4cdb-bb38-427176aff09a%2Fy42zf3y6_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Simplified BAS - Supplies & Acquisitions
Goods and services tax for the period 01/07/2004 to 31/07/2004
GST accounting method Non-Cash (accruals)
Option 1: Actual GST report quarterly
Total sales & income &
other supplies
G1 $
Does the amount shown
at G1 include GST?
Exports G2 $
Other GST-free supplies G3 $
Capital acquisitions G10 $
Other acquisitions G11 $
Show actual GST at 1A and 1B in the Summary
on the back
Summary of amounts
O yes O no
Amounts you owe to the ATO
Goods and services tax payable 1A $
Wine equalisation tax payable 1C $
1E $
Luxury car tax payable
Pay As You Go withholding
Pay As You Go instalment
Fringe benefits tax
instalment
Deferred company/fund
instalment
4 $
54 $
6A $
7 $
1A +1C+1E+4+5A +6A +7 84 $
Payment or refund?
Is 8A more than 8B?
BI
Yes
Yes
No
O Option 2: Actual GST report annually
Total sales & income &
other supplies
G1 $
Simplified BAS Debits & Credits
0
0
0
0
Does the amount shown
at G1 include GST?
Show actual GST at 1A and 1B in the Summary on
the back
Option 3: GST Instalment
If varying your amount, complete G22, G23, G24
ATO instalment amount G21 $
If varying your amount, complete G22, G23, G24
Estimated GST for the year G22 $
Varied GST instalment
G23 $
Show at 1A in Summary
Reason for variation
G24
Amounts the ATO owes you
Credit for goods and services tax paid 1B $
Wine equalisation tax refundable 1D $
Luxury car tax refundable
1F $
Credit arising from reduced Pay
As You Go instalments.
Credit arising from reduced
fringe benefits tax instalments
yes no
18+1D +1F +58 +68
5B
$
6B $
Show 84 minus 88 in 9. This amount is payable to the ATO
Show 88 minus 8A in 9. This amount is refundable to you
(or offset against any other tax debt you have)
88 $
Your payment or refund amount 9 $
0
0
3
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