During October 2024, Cleo launched a business, Cleo’s Coffee, operating from a repurposed shipping container. After each October transaction, Cleo prepared a statement of financial position, as shown below.

Required

(a) Describe the nature of each of the four transactions that took place during October.

(b) Comment on the type of financial information conveyed in a statement of financial position.

(c) Write a response to the statement that ‘a statement of financial position should only be prepared once a year’

Transcribed Image Text:

(1) CLEO'S COFFEE Statement of financial position as at 4 October 2024 Equity Assets Cash at bank $ 150 000 (2) Cleo, capital $ 150 000 Assets Cash at bank Container, tables and chairs (3) CLEO'S COFFEE Statement of financial position as at 13 October 2024 Equity $ 40 000 110 000 Cleo, capital $ 150 000 $ 150 000 $ 150 000