The following business transactions relate to John Clark (financial planner) for his first month of business operations in August 2020. 2020 August 1: Commenced business operations with a $300 000 cash injection of personal funds. 29 Received interest from business bank account $15. 2 Paid monthly rent S1500. Required: 4 Purchased office stationery $2000 on credit from Stationery Plus. A. State the impact on the accounting equation for each transaction above. For example: 7 Purchased office equipment on credit from Supplies Inc. S10 000. 1 Aug Increased Cash S300,000 Increased Capital $300,000 9 Sent invoice to client M Bit for services $3000. B. Prepare a worksheet for the month of August 2020 from the above information. 11 Purchased MYOB software for laptop computer $700 cash. Creditor Accounts receivable Date Cash Capital Office equipment Profit and loss 13 M Bit paid amount outstanding. August 2020 14 Met with prospective client and negotiated provision of financial advice for client and family, quoting $5000. C. Using the business transactions in part B, record the transactions in the ledger of John Clark. 17 Paid car parking permit $220. 19 Withdrew cash from business of $2000 for personal use. 22 Paid WWW Ltd for monthly internet use S182. 29 Received interest from business bank account S15.
The following business transactions relate to John Clark (financial planner) for his first month of business operations in August 2020. 2020 August 1: Commenced business operations with a $300 000 cash injection of personal funds. 29 Received interest from business bank account $15. 2 Paid monthly rent S1500. Required: 4 Purchased office stationery $2000 on credit from Stationery Plus. A. State the impact on the accounting equation for each transaction above. For example: 7 Purchased office equipment on credit from Supplies Inc. S10 000. 1 Aug Increased Cash S300,000 Increased Capital $300,000 9 Sent invoice to client M Bit for services $3000. B. Prepare a worksheet for the month of August 2020 from the above information. 11 Purchased MYOB software for laptop computer $700 cash. Creditor Accounts receivable Date Cash Capital Office equipment Profit and loss 13 M Bit paid amount outstanding. August 2020 14 Met with prospective client and negotiated provision of financial advice for client and family, quoting $5000. C. Using the business transactions in part B, record the transactions in the ledger of John Clark. 17 Paid car parking permit $220. 19 Withdrew cash from business of $2000 for personal use. 22 Paid WWW Ltd for monthly internet use S182. 29 Received interest from business bank account S15.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:The following business transactions relate to John Clark (financial planner) for his first month of
business operations in August 2020.
2020
August
1: Commenced business operations with a $300 000 cash injection of personal funds.
29 Received interest from business bank account $15.
2 Paid monthly rent $1500.
Required:
4 Purchased office stationery $2000 on credit from Stationery Plus.
A. State the impact on the accounting equation for each transaction above. For example:
7 Purchased office equipment on credit from Supplies Inc. S10 000.
1 Aug
Increased Cash $300,000
Increased Capital $300,000
9 Sent invoice to client M Bint for services $3000.
B. Prepare a worksheet for the month of August 2020 from the above information.
11 Purchased MYOB software for laptop computer $700 cash.
Date
Cash
Accounts
Office
Creditor
Capital
Profit and loss
August
2020
receivable
equipment
13 M Birt paid amount outstanding.
14 Met with prospective client and negotiated provision of financial advice for client
and family, quoting $5000.
C. Using the business transactions in part B, record the transactions in the ledger of John Clark.
17 Paid car parking permit $220.
19 Withdrew cash from business of $2000 for personal use.
22 Paid WWW Ltd for monthly internet use $182.
29 Received interest from business bank account $15.
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