On the 1 March 2013 Patrick set up a business as an accountant. Patrick has had several years experience with a large CPA firm in Sydney and when he received a large inheritance from a long lost relative he decided now was the time to take the risk of being his own boss. The following transactions occurred during his first month of operation.

1. Contributed $80,000 to the accounting practice.

1. Patrick agreed to rent a large office space from his good friend Bill

3. Patrick and his girlfriend spent the morning shopping for office furniture and equipment. He managed to negotiate credit terms for 7 days and received a discount on the furniture and equipment. The original price of was $29,500 but the invoice price is $25,000.

5 Purchased two computers, two printers and a modem for the business, paid $12,000 cash.

5 Paid $3000 for the first months rent on office space

7 Hire a personal assistance and agreed to pay $400 per week

9 Patrick completed a tax return for a desperate client and received $400 cash.

12 Paid for the office furniture and equipment

14 Paid his personal assistant $700

25 Sent an invoice to a client for services rendered of $3475

21 Paid his personal assistant $300

30 Paid utilities expenses of $900

30 Withdraw from bank $1200 for personal use

Required:

a. Prepare the following statements for March;

An Income Statement

A Statement of Changes in Equity; and

A Balance Sheet