Parsons Fashion Designers was started on 1 June. The following transactions of the business occurred during June:

a E. Parsons started the business by investing \(\$ 18000\) cash.

b Land and an office building were acquired at a cost of \(\$ 5500\) (including GST \$500) and \(\$ 19800\) (including GST \$1800), respectively. The company paid \(\$ 6300\) immediately and established a short-term loan for the remaining balance of \(\$ 19000\). The payment is due in two years.

c Design equipment was purchased. The cash price of \(\$ 2860\) (including GST \$260) was paid by cheque to the supplier.

d Office supplies totalling \(\$ 275\) (including GST \$25) were purchased on credit. The amount is due in 30 days.

e A one-year fire insurance policy was purchased for \(\$ 880\) (including GST \$80).

f Fashion design commissions (fees) of \(\$ 1320\) (including GST \$120) were collected from clients for June.

g An assistant's wage of \(\$ 660\) was paid for June. PAYG Tax included in this amount was \(\$ 160\).

h E. Parsons withdrew \(\$ 500\) from the company for personal use.

i Utility bills totalling \(\$ 165\) (including \$15 GST) for June were received and will be paid in early July.

Required:

i Using the accounting system shown in the chapter, record the above transactions.

ii Prove the equality of the accounting equation at the end of June.

ii List the source documents that you would normally use in recording each of the transactions.