End of Chapter Question 4.35 Rotterdam Financial Services Pty Ltd, managed by Saphira Browne, provides accounting, taxation and financial planning services to clients residing in the inner Melbourne area. The balance sheet for Rotterdam Financial Services Pty Ltd as at 1 October 2018 is as follows: Rotterdam Financial Services Pty Ltd Balance sheet as at 1 October 2018 Assets Cash $57,120 Accounts receivable 6,720 Supplies 13,440 Building 136,640 Total assets $213,920 Liabilities Accounts payable $28,000 Equity Capital 185,920 Total liabilities and equity $213,920 During the three months from October to December, Rotterdam Financial Services Pty Ltd conducted the following transactions: October 1 Invoiced customer for various accounting and tax services $9,856, to be paid by customer at end of month. 4 Purchased new office furniture $17,200 cash. 10 Invoiced customer for financial planning services completed $17,920. 14 Received $8,960 payment from customers who have previously been billed. 20 Paid supplier $4,480 for office supplies purchased last month. 28 Received a $5,180 invoice from the Melbourne Times newspaper for advertising, due to be paid in two weeks. 31 Received payment from customer invoiced on 1 October. November 7 Paid employee salaries $17,440 cash. 11 Paid invoice from the Melbourne Times for invoice received on 28 October. 5 Received gas and electricity bill to be paid one month later $269. 23 Provided tax services to customers $3,808 cash. 30 Paid employee salaries $1,120 and shop rent $1,344 cash. December 8 Paid gas and electricity bill dated 15 November. 15 Owners contributed a further $33,600 cash to the business. 23 Provided accounting (Quicken) services to customers for $2,240, payment due in one month. 29 Received water bill $526 to be paid in three weeks. 30 Paid employee salaries $896. Paid bank fees incurred directly out of business's bank account $22.