Required: A. State the impact on the accounting equation for each transaction above. For example: 1 Aug Increased Cash $300,000 Increased Capital $300,000 B. Prepare a worksheet for the month of August 2020 from the above information. Date August 2020 Cash Accounts receivable Office equipment Creditor Capital Profit and loss C. Using the business transactions in part B, record the transactions in the ledger of John Clark.
The following business transactions relate to John Clark (financial planner) for his first month of business operations in August 2020.
2020
August1:Commenced business operations with a $300 000 cash injection of personal funds.
2 Paid monthly rent $1500.
4Purchased office stationery $2000 on credit from Stationery Plus.
7Purchased office equipment on credit from Supplies Inc. $10 000.
9Sent invoice to client M Birt for services $3000.
11 Purchased MYOB software for laptop computer $700 cash.
13 M Birt paid amount outstanding.
14 Met with prospective client and negotiated provision of financial advice for client
and family, quoting $5000.
17 Paid car parking permit $220.
19 Withdrew cash from business of $2000 for personal use.
22Paid WWW Ltd for monthly internet use $182.
29 Received interest from business bank account $15.
Required:
A. State the impact on the
1 Aug Increased Cash $300,000 Increased Capital $300,000
B. Prepare a worksheet for the month of August 2020 from the above information.
|
Date August |
Cash |
|
Office equipment |
Creditor |
Capital |
|
C. Using the business transactions in part B, record the transactions in the ledger of John Clark.
D. Prepare a
E. Prepare a statement of profit or loss for the month ending 31 August 2020.
F. Prepare a
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