Recording Transaction
3. Jeff collected $6,000 from customers for repair services performed. 4. Rent was paid for the month of August, $2,400. 5. Supplies amounting to $2,740 were purchased on credit. 6. Wages of $1,000 were paid as well as an account for electricity, $540. 7. Jeff paid for the supplies purchased in (5) above. 8. Supplies used during August amounted to $1,280. Required: A. Prepare a schedule. List the following assets, liabilities and equity as column headings: Cash at Bank; Supplies; Equipment; Loan Payable; Accounts Payable; J. Drain, Capital. B. Show the effects of each of the transactions on the accounts listed. Indicate totals after each transaction and complete the schedule. C. Prepare an income statement and a statement of changes in equity for the month ended 31 August 2013, and a balance sheet as at 31 August 2013.
Exercise 2.12 – Preparation of Income Statement and Balance Sheet
The market value of the buildings had risen to $500,000 by 30 June 2014.
Required:
A. Prepare an income statement for Beaut Beach Caravan Park for the year ended 30 June 2014. B. Prepare a balance sheet for the business as at 30 June 2014. C. Explain why you have used a particular valuation for the buildings in the balance sheet.
Chapter 3 – Recording Transactions
Problem 3.2 – Journal Entries, Posting to Ledger, and Trial Balance
Gerry Munro opened a hairdressing salon on 1 July 2012. The following transactions occurred during the first month of operations (ignore GST):
July 2 Munro invested $30 000 in the business by depositing cash into a business cheque account with the NZA Bank.
2 Paid $1200 for the first month’s rent.
3 Purchased equipment by issuing a cheque for $12 000 and signing a commercial loan agreement for $16 000.
4 Purchased supplies for $1040.
6 Paid advertising expense of $300.
16 Recorded hairdressing revenue for the first half of the month of $1680 in cash and $250 on credit.
20 Paid
Exercise 2.12 – Preparation of Income Statement and Balance Sheet
The market value of the buildings had risen to $500,000 by 30 June 2014.
Required:
A. Prepare an income statement for Beaut Beach Caravan Park for the year ended 30 June 2014. B. Prepare a balance sheet for the business as at 30 June 2014. C. Explain why you have used a particular valuation for the buildings in the balance sheet.
Chapter 3 – Recording Transactions
Problem 3.2 – Journal Entries, Posting to Ledger, and Trial Balance
Gerry Munro opened a hairdressing salon on 1 July 2012. The following transactions occurred during the first month of operations (ignore GST):
July 2 Munro invested $30 000 in the business by depositing cash into a business cheque account with the NZA Bank.
2 Paid $1200 for the first month’s rent.
3 Purchased equipment by issuing a cheque for $12 000 and signing a commercial loan agreement for $16 000.
4 Purchased supplies for $1040.
6 Paid advertising expense of $300.
16 Recorded hairdressing revenue for the first half of the month of $1680 in cash and $250 on credit.
20 Paid