On 1 August 2023, Ellie Sparks commenced a solar battery installation business. She registered the business as Green Battery Solutions and formed a private (Pty Ltd) company in the same name. Ellie is to be the sole shareholder of the company. Ellie has consulted a qualified accountant and agreed to use the following account names and numbers for recording the business transactions. No new general ledger accounts are required to be established or added to the chart of accounts.

NatureAccount no.Account DescriptionAssets101Cash at bank 111Accounts receivable 120Office supplies 151Office equipment 161Motor vehiclesLiabilities201Accounts payable 251Bank loanEquity301Share capitalIncome401RevenueExpenses601Advertising expense 606Bank charges 611Insurance expense 621Interest expense 631Motor vehicle expense 651Wages expense

Listed below are the events that have occurred during the first month of the Green Battery Solutions Pty Ltd business (ignore GST).

MonthDay EventAugust 1 Ellie opened a business bank account to begin the business, contributing $10,000 cash in exchange for shares in the company. The company also obtained a bank loan for $40,000. The loan will be repaid in 5 years time (treat as a non-current liability). The bank has offered the loan interest-free for the first 6 months, so there is no interest on the bank loan for the first 6 months. 1 Ellie decided to run the business from the current home office in her residence to avoid rental costs. She also decided to list her private phone number as the contact number for the business to save on telecommunications costs. 2 Ellie bought insurance for the business with All Covered Insurance Pty Ltd. The annual cost is $3,900 which will be invoiced in twelve monthly instalments. The first monthly insurance payment of $325 was directly debited from the business bank account on this day. 3 Hired an employee, Tony Davies, to help with the installation work. The employee will be paid on a fortnightly basis. 4 Purchased for the business a motor vehicle at a cost of $22,500 and a colour printer costing $1,200. 11 Issued a quote to a customer, Sunny Townhouse, to install solar batteries in a townhouse. The quote was $8,000. 14 Paid employee wages of $2,100. 16 Cash received from other electrical work completed during the first half of the month in the amount of $2,650 was deposited to the business bank account. Invoices were issued for $1,750 for further work which has been performed but for which payment has not been received. 16 Sunny Townhouse advised that they have accepted the quote and returned the signed quote accepting all terms and conditions. Ellie started work on the project. 18 Purchased office supplies on credit for $1,575. 21 Paid advertising expenses for August of $225 by transfer from the business bank account. Advertisements will appear on various social media in August including Marketplace. 23 Issued an invoice to Sunny Townhouse for the work completed for the amount of $8,000. 30 Paid employee wages of $2,100. 30 Received payment from the townhouse customer of $8,000. 31 Recorded other electrical work revenue for the second half of the month of $2,900 on credit. In addition, cash sales of $1,600 were deposited to the business bank account. 31 Fuel costs of $1,050 were paid by transfer from the business bank account.

Bank statement for Green Battery Solutions Pty Ltd for the month ended 31 August 2023Issued by All About Banking Pty LtdStatement Number1 Account Number034871 92752 Closing Balance32,720.00 Date Description PaymentsReceiptsBalance Opening balance 0.00 1AugCapital contributed - Cash and Bank Loan 50,000.0050,000.00Cr 2AugDirect debit All Covered Insurance Pty Ltd325.00 49,675.00Cr 4AugTradies Vehicles Used Utes22,500.00 27,175.00Cr 4AugOfficeworks Multi-function Colour Printer1,200.00 25.975.00Cr 14AugEFT T. Davies2,100.00 23,875.00Cr 16AugCash deposit 2,650.0026,525.00Cr 21AugEFT Social Media Advertising Agency225.00 26,300.00Cr 30AugEFT T. Davies2,100.00 24,200.00Cr 30AugDeposit Sunny Townhouse 8,000.0032,200.00Cr 31AugCash deposit 1,600.0033,800.00Cr 31AugEFT Motorpass Fuel Card1,050.00 32,750.00Cr 31AugStatement and bank charges30.00 32,720.00Cr

Prepare the following for Green Battery Solutions Pty Ltd:

a.Statement of Profit or Loss for the month ended 31 August 2023

b.Calculation of retained earnings for the month of August 2023.

c. Classified Statement of Financial Position as at 31 August 2023.