Bea Wise is a budding entrepreneur and has a strong technological background. On 1 April 2021, she starts her own business, PhoneBea Solutions, which is a retailer of laptops, tablets and smartphones. Bea believes that her expert knowledge and ability to translate technical concepts into everyday terms for her customers will provide her with a competitive advantage over the competition, who focus more heavily on price than on providing individualised service. You used to live near Bea and you both went to the same school. At a recent school reunion, you met up with Bea and she tells you about her new venture. Bea mentions she is worried about the large amount of cash she has spent during the first month of trading. You tell her about how you are studying an accounting topic now and explain the difference between the cash and accrual basis of accounting. Bea asks you to help her by preparing accrual-based accounting information for her business. She supplies you with a list of transactions and events relating to her first month of trading, April 2021, and some additional information about the business.

Possible options on accounts:

Accounts Payable Electricity Expense Accounts Receivable Fixture & Fittings Accrued Expenses Insurance Expense Accum. Depn - Fixture and Fittings Interest Expense Accum. Depn - Motor Vehicle Interest Payable Accum. Depn - Office Equipment Inventory Advertising Expense Loan Allowance for Doubtful Debts Maintenance & Repairs Expense Bad Debt Expense Motor Vehicles Bank Overdraft Office Equipment Capital Prepaid Advertising Cash Prepaid Insurance Cleaning Expense Prepaid Rent Computers Principle Repayment Contributed Capital Rent Expense Cost of Goods Sold Sales Credit Card Expense Telecommunications Expense Depreciation Expense Training Expense Doubtful Debts Expense Wages Expense Drawings Wages Payable

Transactions/Events for April 2021 # 1 2 3 4 5 6 7 Date Transaction/Event 1 Bea took out a loan of $60,000 from the bank to help finance her growing business interest rate of 4% per annum, interest payable on the 1st of each month, principal repayable at the end of 5 years). 1 Paid $8,400 for a 12-month business insurance policy. 1 Bea contributed her personal motor vehicle, valued at $22,000, for exclusive use by the business (useful life 5 years, residual value $4,000). 1 Paid $24,000 of rent for a business premises for the next 12 month period. 1 Paid $19,200 for fixtures and fittings for the shop (useful life 10 years, residual value $0). 2 Paid $1,500 for advertising being carried out this week. 2 Credit purchase of 15 laptops @$920 each and 30 smartphones @$460 each. 3 Cash sales of 8 laptops @$1,460 each. 4 Credit sales of 18 smartphones @$820 each. 6 Attended a training seminar - paid $200 for a ticket at the door. 7 Cash purchase of 15 tablets @$320. 9 Bea hired Carly, a new staff member, whose wages will be $1,500 per fortnight. 10 Credit purchase of 20 smartphones @$480 each. 14 Received payments of $8,200 from customers. 15 Cash sales of 16 smartphones @$820 each. 18 Bea withdrew $5,000 cash from the business. 8 9 10 11 12 13 | 14 15 16 Record transactions #1-5 for PhoneBea Solutions from the 1st of April here. Select the appropriate accounts from the drop-down menus. Within each transaction, the accounts are split between these menus, so if you cannot find the account you want on one menu, check the other menu(s). Enter your amounts as whole numbers without a dollar symbol. I Increases should be entered as a positive number (e.g. 2000). A negative sign should be used for decreases (e.g. -2000), including all drawings and all expenses (which are a decrease in equity) and all contra-asset accounts (which decrease the value of their corresponding assets). If you believe no transaction should be recorded, select No transaction has occurred from both drop-down menus and enter O in both amount boxes. #1 Account Amount $ Account Amount $ #2 Account Amount $ Account Amount $ #3 Account Amount $ Account Amount $ Account Amount $ #4 Account Amount $ Account Amount $ #5 Account Amount $ Account . Amount $