ASSIGNMENT INFORMATIONQuestion 1. Larkspur Furniture uses a perpetual inventory system and pays GST on anaccrual basis. Larkspur engaged in the following transactions during July 2021.Transactions are inclusive of GST where relevant.July2.3.2584.5.9101112142428Required:1.27Purchased inventory for cash, $1 045Purchased store supplies on credit for $495Purchased 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 wasdamaged in transit.Purchased inventory for cash for $3 663.Sold inventory on credit terms $11 160, less a $600 quantitydiscount (cost, $5000). Note: GST applies after the discount.Received returned inventory from the 14 July sale, $440. LarkspurFurniture had despatched the wrong goods by mistake. A credit note wasissued. Larkspur's cost of the inventory received was $250. Ignoreprevious quantity discount.Borrowed $5,000 from the bank. Signed a bill payable to the bank for thisamount.Purchased a computer on credit for $2,200.Journalise the preceding transactions for Larkspur Furniture using multi-columnspecial journals.Post transaction amounts to ledger accounts and prepare a trial balance.Complete the GST Section of the Business Activity Statement for July. As youare only reporting for one month, you will need to use the quarterly reportingoption 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 offinancial position but not the statement of financial performance. Explain howand why this happens.Chart of Accounts101 Cash at bank102 Inventory103104 Accounts receivable150 Office EquipmentStore supplies201 Accounts payable202 Bill payable203204401402501601602GST collectedGST paidSales revenueSales returns and allowancesCost of goods soldFreight-inElectricity expense2 Simplified BAS - Supplies & AcquisitionsGoods and services tax for the period 01/07/2004 to 31/07/2004GST accounting method Non-Cash (accruals)Option 1: Actual GST report quarterlyTotal sales & income &other suppliesG1 $Does the amount shownat 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 Summaryon the backSummary of amountsO yes O noAmounts you owe to the ATOGoods and services tax payable 1A $Wine equalisation tax payable 1C $1E $Luxury car tax payablePay As You Go withholdingPay As You Go instalmentFringe benefits taxinstalmentDeferred company/fundinstalment4 $54 $6A $7 $1A +1C+1E+4+5A +6A +7 84 $Payment or refund?Is 8A more than 8B?BIYesYesNoO Option 2: Actual GST report annuallyTotal sales & income &other suppliesG1 $Simplified BAS Debits & Credits0000Does the amount shownat G1 include GST?Show actual GST at 1A and 1B in the Summary onthe backOption 3: GST InstalmentIf varying your amount, complete G22, G23, G24ATO instalment amount G21 $If varying your amount, complete G22, G23, G24Estimated GST for the year G22 $Varied GST instalmentG23 $Show at 1A in SummaryReason for variationG24Amounts the ATO owes youCredit for goods and services tax paid 1B $Wine equalisation tax refundable 1D $Luxury car tax refundable1F $Credit arising from reduced PayAs You Go instalments.Credit arising from reducedfringe benefits tax instalmentsyes no18+1D +1F +58 +685B$6B $Show 84 minus 88 in 9. This amount is payable to the ATOShow 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 $003

Introduction: The trial balances showing the all balances of general ledgers, that means the…

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.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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