Emma Lu obtained registration to practise as a naturopath, and spent the month of July 2019 setting up her business — E. Lu, Naturopath.

Emma prepared a new balance sheet after each transaction which occurred. During July, the following balance sheets were prepared.

Required

(a) Describe each of the five transactions that occurred during July 2019.

(b) Emma is very focused on the environment. As a manager and owner of the business, discuss the actions that she could take to earn a reputation for having sustainable business practices.

(c) Discuss whether you believe that disclosing sustainable business practices enhances an entity’s reputation.

Transcribed Image Text:

ASSETS Cash at bank $85,000 ASSETS Cash at bank Equipment Building $ 50000 25000 170000 $245000 E. LU, NATUROPATH Balance Sheet as at 1 July 2019 E. LU, NATUROPATH Balance Sheet EQUITY E. Lu, Capital $85000 as at 8 July 2019 LIABILITIES AND EQUITY Loan payable E. Lu, Capital $160000 85000 $245000