Brussels Financial Services Pty Ltd, operated by Kim Henin, provides accounting, taxation and financial planning services to clients residing in the inner Melbourne area. The balance sheet for Basel Financial Services Pty Ltd as at 1st October 2014 is as follows:
Brussels Financial Services Pty Ltd
Balance Sheet
As at 1October 2014
Assets
Cash .....................................................................20 500
Accounts Receivable .................................................. 3 000
Supplies ................................................................. 6 000
Equipment ..............................................................61 000
Total Assets ............................................................90 500
Liabilities
Accounts Payable ......................................................12 500
Owner's Equity
Henin, Capital ...........................................................78 000
Total Liabilities and Owner's Equity................................90 500
During the 3 months of October to December, Brussels Financial Services conducted the following transactions:
October 1 Invoiced customer for various accounting and tax services $4400, to be paid by customer at end of month.
4 Purchased new equipment $8000 cash.
10 Invoiced customer for financial planning services completed $8000.
15 Received $4000 payment from customers who have previously been billed.
20 Paid supplier $2000 for office supplies purchased last month.
28 Received a $2000 invoice from the Melbourne Times newspaper for advertising, due in two weeks.
31 Received payment from customer invoiced on 1 October.
November 6 Paid employee salaries $8000 cash.
11 Paid invoice from the Melbourne Times for invoice received on 28 October.
15 Received gas and electricity bill to be paid one month later $2400.
23 Provided tax services to customers $5600 cash.
30 Paid employee salaries $3000 and shop rent $1900 cash.
December 8 Paid gas and electricity bill dated 15 November.
15 Henin contributed a further $16 000 cash to the business.
24 Provided accounting (MYOB) services to customers for $1000, payment due in one month.
29 Received water bill $510 to be paid in three weeks.
30 Paid employee salaries $4000.
30 Withdrew office supplies for home use $400.
30 Paid bank fees incurred directly out of business's bank account $30.
Required
a. Prepare a worksheet for Brussels Financial Services Pty Ltd for the business transactions in October to December 2014.
b. Using the data given above, prepare an income statement for the quarter ending 31 December 2014 and a balance sheet as at 31 December 2014 for Brussels Financial Services Pty Ltd.
c. Comment on the profit/loss for the business for the three months ending 31 December 2014.