Tran’s Clothing Alterations began operations on 1 August 2019 and completed the following transactions during the first month.

1. Tran deposited $18 000 of her personal funds in a current account at a bank opened in the name of the business.

2. Sewing equipment was purchased at a cost of $9000, of which $5000 was paid in cash. A loan payable was given for the remainder of $4000.

3. Tran collected $1500 from customers for alteration services performed.

4. Rent was paid for the month of August, $1200.

5. Sewing supplies amounting to $700 were purchased on credit.

6. Wages of $500 were paid as well as an account for electricity, $250.

7. Tran paid for the sewing supplies purchased in (5) above.

8. Supplies used during August amounted to $300.

Required

(a) Prepare a schedule similar to that shown previously in the chapter, for Cynthia’s Beauty Services for transactions 8, 9 and 10. List the following assets, liabilities and equity as column headings: Cash at Bank; Supplies; Equipment; Loan Payable; Accounts Payable; Tran, Capital.

(b) Illustrate 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, a statement of cash flows and a statement of changes in equity for the month ended 31 August 2019.

(d) Prepare a balance sheet as at 31 August 2019.