Appendix 1: Beauty and Hair Salon Background Alison Martin is a hairdresser and had worked for a few well-known hair salons in the last 15 years before deciding to have her own salon. Alison has recently leased a shop in Westfield mall and named it, "Beauty and Hair Salon". The salon sells both products and service which are summarised in Table 2. Alison has hired 3 hairdressers and 1 barber who used to work with her in the past. Alison has contacted you asking whether you could help her record transactions which took place in the first one month of operation and inform her the business' performance. Below are transactions that took place in July. (All transactions include GST where relevant) (GST rate is 15%) Date 1 2 3 6 7 8 Transaction Alison contributed $100,000 of her savings to start the business Obtained a $30,000 loan from ASB bank with 6% of interest per annum. Purchased furniture from Salon Warehouse costing $35,000, on credit, deposited $5,000, and the remaining balance is due on 20th August. Depreciation method is diminishing value at rate of 14% | Purchased equipment from MK Hair Supplies costing $18,000, on credit, deposit 20%, the remaining balance is due on 15 August. Depreciation method is diminishing value at rate of 40% Purchased a Fisher & Paykel Combi Front Loader Washer Dryer from Noel Leeming costing $2500. Paid by cash. Depreciation method is diminishing value at rate of 13% Signed a contract with Saint Teresa of Calcutta Rest Home to provide haircare to residents every month at $1000 per month. | Purchased from Hair Products Ltd $5,000 hair and beauty supplies to use in the shop, paid by cash | Purchased from MK Hair Supplies the following products to sell in the shop, paid by cash. 3 Silver Bullet Obsidian Hair Dryer 2000W, $45 each 2 Silver Bullet Conical Curling Iron, $52 each 2 Silver Bullet WonderCurl Triple Barrel Curling Iron, at $95 each 10 11 11 12 13 13 3 Silver Bullet Keratin 230 Titanium Hair Straightener, at $135 each 2 Silver Bullet Ocean Waves 4 In 1 Adjustable Waver, at $120 each Provided the following services to customers for cash: 6 men haircuts 5 men beard cuts 8 women style cuts 3 hair washes 2 permanent straightening 4 girls hair cuts (10-16 years old) +1 eyelash extension +1 party make up +2 herbal facials 3 men beard colour +1 Full Head Foils & Toner Short Length Purchased a AquaGlo Hydradermabrasion System from Skin Professional Ltd costing $22,000, on credit, deposit $5,000, the remaining is due on 1st September Depreciation method is diminishing value at rate of 40% Purchased computer equipment from Harvey Norman costing $4,000 on credit. Due date: 5 September Depreciation method is diminishing value at rate of 25% Paid $100 for some stationery bought from Warehouse Provided the following services for cash 2 x herbal facial service 1 x microneedling 2 eyelash extensions 7 men haircuts 2 beard colour 2 men full head colour 10 women style cut 1 Balayage highlights 5 hair washes 3 Pixie cuts Paid wages $3,200 Sold for cash the following products 14 15 1 Silver Bullet Keratin 230 Titanium Hair Straightener Provided services: 1 Full Head Foils & Toner long and thick hair +1 Hair wash +1 Hair thinning +1 Balayage Highlights 1 Wash and Treatment Purchased hair products for re-sales from Hair Products Ltd, on credit. Due on 29th July. 5 American Crew 3-in-1 Shampoo Conditioner Bodywash 450ml 5 American Crew Daily Cleansing Shampoo 250 ml 5 American Crew Next Level Grooming Travel Kit 5 Kerastase 500ml Blond Absolu Bain Lumiere Shampoo 5 Kerastase Curl Manifesto COMPLETE Bundle 5 Kerastase DISCIPLINE Complete Bundle 5 Kerastase Densifique Bain Densite Femme Shampoo 250ml 5 L'Oreal Srie Expert 500ml ABSOLUT REPAIR Shampoo & Conditioner Bundle 5 L'Oreal Srie Expert 750ml VITAMINO COLOUR Bundle 5 L'Oreal Srie Expert ABSOLUT REPAIR Duo x Witchery Gift Pack 5 Kerastase Elixir Ultime L'Huile Original Hair Oil 100ml - TIGER ROUGE LIMITED EDITION 5 Kerastase Styling L'incroyable Blow Dry Hair Lotion 150ml 5 Kerastase Styling Laque Noire Hairspray 300ml 5 Color Wow Root Cover Up - Black 5 Color Wow Root Cover Up - Dark Blonde 5 Color Wow Root Cover Up - Dark Brown 5 Color Wow Root Cover Up - Blonde 5 Kerastase Genesis Mask Limited Edition Coffret Set 5 Kerastase Blond Absolut Mask Limited Edition Coffret Set 5Kerastase RESISTANCE EXTENTIONISTE Discovery Travel Set Provided services to elderly at Saint Teresa of Calcutta Rest Home for $1,000 cash. (The shop closed until noon) 16 16 17 17 17 18 19 Provided the following services to customers for cash. 2 Boys (1-9 years old) haircuts 3 Balayage Highlights 5 Wash and Treatment 3 Style cut and blow dry/straight 2 Trim cut 1 Mens full head colour 1 Men's face scrub 1 Men's full face wax Paid (using internet banking) AIA $1,380 insurance for 12 months Local Newspaper $230 for monthly advertisement *Contact Energy' sent an invoice for electricity used - $ 300. Due 14 August. Received an invoice from Westfield for the July lease - $7000. Due 29 July Sold by cash 1 Silver Bullet Obsidian Hair Dryer 2000W 1 Silver Bullet Ocean Waves 4 In 1 Adjustable Waver 1 American Crew 3-in-1 Shampoo Conditioner Bodywash 450ml 1 L'Oreal Srie Expert 500ml ABSOLUT REPAIR Shampoo & Conditioner Bundle Provided the following services for cash 2 women style cut 1 Bond Treatment +1 Fringe cut +1 Pixie cut 1 Hair styling for special functions 1 Full Head Foils & Toner Short Length 3 Hair wash 2 Wash and Treatment Provided the following services for cash 2 Men's face scrub 1 Men's full face wax 1 Men Root Touch up 2 Beard cut 3 Men's Ear wax 2 Eyelash extension 1 Microneedling 20 21 23 25 27 27 29 31 31 2 Full face wax (women) Sold the following products for cash 1 Kerastase Styling L'incroyable Blow Dry Hair Lotion 150ml 1 Kerastase Styling Laque Noire Hairspray 300ml 1 Color Wow Root Cover Up - Black Received $500 from Epsom Dance School for hair services to be provided on 3rd August Received an invoice from Spark for phone and internet charges of $120. Due 20 August Paid in full the rent owed to Westfield Provided the following services and sold products to Albany Retirement Village, on credit. Due on 3rd August 10 Style cut 5 Mens cut 5 Trim cut 2 Silver Bullet Obsidian Hair Dryer 2000W Sold by cash 1 Kerastase Genesis Mask Limited Edition Coffret Set 1 L'Oreal Srie Expert 500ml ABSOLUT REPAIR Shampoo & Conditioner Bundle 1 Silver Bullet WonderCurl Triple Barrel Curling Iron Provided the following services for bride to be and bridesmaids for cash 6 Body wax 6 Wedding hair and make up 6 Herbal facial Sold by cash the following products 1 Kerastase Styling L'incroyable Blow Dry Hair Lotion 150ml 1 L'Oreal Srie Expert ABSOLUT REPAIR Duo x Witchery Gift Pack Paid wages $3,200 Paid, in full, to Hair Products Ltd for the transaction occurred on 14th Depreciation for July needs to be recorded. Paid interest on loan to ASB Barber Mens cut Mens threading Mens full head colour EA EA $ 30 $ 10 $ 70 Men's face scrub $ 30 Men's full face wax $ 25 Men Root Touch up $ 30 Beard cut $ 25 Men's Ear wax $ 5 Razer cut $ 37 Beard colour $ 35 Kids Hair cut Age 1-9 years old Boys Girls Age 10-16 years old Boys Girls Beauty EA EA $ 10 $ 12 EA $ 15 EA $ 22 Herbal facial Wedding hair and make up $ EA EA $ 75 250 Party make up $ 75 Eyelash extension $ Microneedling EA EA 45 $ 140 Women Full face wax $ 35 Body wax EA $ 180 Services A Beauty and Hair Salon Ladies Hair B Prices Style Cut $ Bond Treatment Fringe cut Pixie cut $ EA EA 45 35 $ 20 $ 55 Hair styling for special functions $ 150 Full Head Foils & Toner Short Length $ 230 Full Head Foils & Toner long and thick hair $ 459 Hair wash $ 20 Hair thinning $ 20 Balayage Highlights $ 350 Wash and Treatment $ 45 Style cut and blow dry/straight $ 55 Trim cut $ 27 Permanent Straightening $ 280 Women Root Touch up EA 65 55 Codes SBO SBC SBW SVKHS SBOW ACSC ACDCS Products Silver Bullet Obsidian Hair Dryer 2000W Silver Bullet Conical Curling Iron EA Silver Bullet WonderCurl Triple Barrel Curling Iron Silver Bullet Keratin 230 Titanium Hair Straightener Silver Bullet Ocean Waves 4 In 1 Adjustable Waver American Crew 3-in-1 Shampoo Conditioner Bodywash 4 $ American Crew Daily Cleansing Shampoo 250 ml Cost Selling Price $ 45 $ 75 $ 52 $ 102 $ 95 $ 175 $ 135 $ 205 $ 120 $ 200 23 $ 40 $ 17 $ 30 ACNL TrK KBAL American Crew Next Level Grooming Travel Kit $ 25 $ 40 KCMCOMP KDIS KDBDS Kerastase 500ml Blond Absolu Bain Lumiere Shampoo Kerastase Curl Manifesto COMPLETE Bundle Kerastase DISCIPLINE Complete Bundle $ 40 $ 75 $ 120 $ 296 $ 130 $ 278 LOVITCOLB LORuoSG KELHO KSLHL KSLNH CWRB CWRDB CWRDBr CWRB1 Color Wow Root Cover Up - Dark Blonde Color Wow Root Cover Up - Dark Brown Color Wow Root Cover Up - Blonde KGMCofS KBAMCofS KRX LOABSPAIRSCB Kerastase Densifique Bain Densite Femme Shampoo 250 L'Oreal Srie Expert 500ml ABSOLUT REPAIR Shampoc $ L'Oreal Srie Expert 750ml VITAMINO COLOUR Bundle $ L'Oreal Srie Expert ABSOLUT REPAIR Duo x Witchery $ Kerastase Elixir Ultime L'Huile Original Hair Oil 100ml $ Kerastase Styling L'incroyable Blow Dry Hair Lotion 150 $ Kerastase Styling Laque Noire Hairspray 300ml Color Wow Root Cover Up - Black $ 30 $ 54 40 $ 85 35 $ 85 40 $ 71 35 $ 66 20 $ 47 $ 20 $ 44 $ 25 $ 50 $ 25 $ 55 $ 25 $ 25 EA A $ 55 $ 55 Kerastase Genesis Mask Limited Edition Coffret Set Kerastase Blond Absolut Mask Limited Edition Coffret S Kerastase RESISTANCE EXTENTIONISTE Discovery Tr: $ $ 65 EA $ 128 $ 65 25 A A $ 128 $ 55 1 2. 8 Assets 5. 5. 7 9 0 1 2 3 4 5 6 7 8 A B Depreciation Method Cost Beauty and Hair Salon Depreciation Rate E F G H Amount per year Amount per month 1 2 Date 3 1-Jul 4 2-Jul 5 3-Jul 4-Jul 7 5-Jul 8 6-Jul 9 7-Jul 8-Jul 11 9-Jul 12 10-Jul 13 11-Jul 14 11-Jul 15 12-Jul 16 13-Jul 17 13-Jul 13-Jul 19 14-Jul 20 15-Jul 21 16-Jul 22 16-Jul 16-Jul 24 17-Jul 25 17-Jul 17-Jul 27 18-Jul 28 19-Jul 29 19-Jul 30 20-Jul 31 21-Jul 32 23-Jul 33 25-Jul 34 27-Jul 35 29-Jan 36 29-Jul 37 31-Jan 40 41 42 43 44 45 31-Jul D ASSETS M N EXPENSES Hair and beauty Washin Compute Accumulate g/Dryer r V W =LIABILITIES AB AC AD AE EQUITY + Revenue d Transactior Bank Accounts Receivable Inventory Supplies Prepayments Furniture Equipmen machin Equipme Depreciatio COGS Depreciatior Wages Insurance Phone Expenses Advertisement Stationery Electricity Rent/Lease Interest GST Payable Accounts Payable Income in advanci Loan Capital Hair & Beauty Servic Hair products sales Beauty and Hair Salon General Journal Date Accounts Debit Credit A B 1234 Beauty and Hair Salon Ledgers 3 Date Ledger Account Name: Bank 5 6 7 8 9 10 11 12 13 given to Teagers C D E F H Debit Credit Balance 14 Date Ledger Account Name: Accounts Receivable Debit Credit Balance 15 16 17 18 19 20 21 22 23 24 28 29 22222 25 26 K M N Note: Please follow the format given to add more relevant ledgers A Beauty and Hair Salon Adjusted Trial Balance As at 31 July 2022 5 Accounts 2 12345678 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 B C D E Debit Credit