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Pauls Fitness Store 1 Jan, Paul starts Fitness Store selling protein shakes as Sole Trader 31 Dec, following list of transactions is provided Prepare Cash
Pauls Fitness Store
1 Jan, Paul starts Fitness Store selling protein shakes as Sole Trader
31 Dec, following list of transactions is provided
Prepare Cash Flow Statement, Income Statement and Balance Sheet for the
year ended 31 December
Use the Accrual Basis
Use the Cash Basis
Transactions for the period
1 Jan, Paul invests $80,000 of his own money to start business
1 Jan, the business received a loan from Bank of $40,000 to be
paid off over 10 years
1 Jan, the business paid a Rental Bond of $2,000 to be returned when
the lease ends
1 Jan, the business paid $50,000 for Equipment & Fittings, which should last
for 10 years with a salvage value of $10,000
1 Jan, Paul invested his Vehicle worth $10,000 into the business, which should
last 5 years with no salvage value
On 1 July, the business bought Furniture for $9,000 on credit which will be paid
for in 2 years. It should last for 4 years with a salvage value of $1,000.
Cash collected from customers during the year was $200,000. This included
$1,000 of Sales that will only be earned in the following period.
At 31 Dec, Sales owing from customers was $15,000
Cash paid for protein shakes purchased to resell during the year was $100,000
At 31 Dec, the business still owed $8,000 for protein shakes purchased to resell
At 31 Dec, the business had protein shakes on hand that had cost $20,000
Cash paid for Operating Expenses (excluding Rent) during the year was $45,000
During the year, 13 months of Rent were paid, totalling $13,000
During the year, the business paid $4,000 of Principal repayments and $2,000 of
Interest on the Bank Loan
During the year, Paul paid $1,000 for a TV for his home using the business bank
account
During the year, Paul took his wife on holiday for $1,500 paying with his personal
bank account
At 31 Dec, the business bank balance was $103,000
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