On 1st January 2020 Nadia Shanks started trading as Shanks Real Estate, and completed the following transactions regarding the business in the first month:

1. Jan 1: Nadia Shanks transferred cash from his personal bank account to the business bank account in order to start operations, $25,000.
2. Jan 4: The business paid a years rent in advance for office space, $11,880
3. Jan 5: The business purchased a motor vehicle, $22,000. A deposit of $6,000 was paid with the remainder financed by a bank loan.
4. Jan 14: Earned first sales commission and received cash, $16,500
5. Jan 18: Paid motor vehicle expenses, $55
6. Jan 20: Nadia Shanks used $60 from the business account to buy flowers for his wife Rita
7. Jan 25: Earned sales commission and sent the client an invoice which will be paid in February, $27,500

Required:

1. Using the format given below, similar to that shown in Exhibit 4.20 p. 162 of the text, complete a transaction analysis for the business for January for transactions a) to i) above. You do need to account for GST. Note that GST occurs arises business revenue earned and expenses incurred, but not on transactions with the owner.

ASSETS

=

LIABILITIES

+

OWNER'S EQUITY

Trans

Date

Cash

Accounts receivable

Prepaid rent

Vehicle

GST Paid

Bank loan

GST Collected

N. Shanks capital

Revenue

Expenses