Proprietor: Ms. Nicole Coffeur

Name: Teenage StyleBag

Description: Hair and Beauty Salon

The business has the following opening balances:

Hair Styling Supplies $767

Hair Styling Equipment $18,529

Bank Loan (due 2022) $28,727

Account Payable $9,051

Motor Vehicle $39,695

Account Receivable $19,386

Cash At Bank $19,595

Additional Information:

Closing stock of hair styling supplies on 30/6 ($) 694

Hair styling equipment scrap value ($) 4,382

Hair styling equipment useful life (years) 3

Rent paid for (months) 5

Insurance paid for (months) 2

Motor vehicle scrap value ($) 3,918

Motor vehicle useful life (years) 2

Bank loan interest rates (% per year) 11

Transactions:

Date Description Amount Date Description Amount

1-Jun Paid General Insurance $2,565 1-Jun Motor Vehicle Expenses $288

1-Jun Manicure services - Account $1,296 1-Jun Purchase hair styling supplies - account $483

3-Jun Rent of Business Premises $4,442 3-Jun Payment to Account Payable $700

4-Jun Motor Vehicle Expenses $198 7-Jun Facial services fees - Cash $1,635

8-Jun Staff Wages $1,114 8-Jun Facial services fees - Cash $1,638

9-Jun Purchase hair styling supplies - account $407 10-Jun Payment to Account Payable $849

12-Jun Advertising Expense - Account $679 13-Jun Purchase books and magazines $63

14-Jun Hair styling fees - Cash $1,139 14-Jun Sundry Expenses $112

14-Jun Facial services fees - Cash $1,798 15-Jun Staff Wages $1,114

15-Jun Sundry Expenses $157 17-Jun Advertising Expense - Account $652

18-Jun Hair styling fees - Account $1,866 20-Jun Cash Withdrawals by Owner $413

21-Jun Cash Withdrawals by Owner $511 21-Jun Advertising Expense - Cash $335

22-Jun Receive Payment from Account Customers $1,042 22-Jun Manicure services - Cash $916

22-Jun Staff Wages $1,114 23-Jun Advertising Expense - Cash $313

23-Jun Hair styling fees - Cash $1,102 23-Jun Manicure services - Account $1,127

24-Jun Purchase books and magazines $88 25-Jun Additional cash contributed by owner $4,136

25-Jun Hair styling fees - Account $1,575 26-Jun Receive Payment from Account Customers $1,355

26-Jun Manicure services - Cash $800 29-Jun Staff Wages $1,114

Comments:

This business was purchased on 1 June 2012. The current date is July 2012, therefore you are preparing financial statements for the period ending

30 June 2012.

You will need to refer to the Additional Information section for your adjusting entries. There is no requirement to make adjusting entries for

unearned income.

The business is staffed 7 days/week and the level of staffing does not vary day to day. Therefore, the cost of wages does not vary by day of the

week.

Wages are paid for work performed up to the day before the day of payment. For example, wages owing for work performed on days 1 to 7 are paid

on day 8.

The rent and insurance periods start on 1 June.

Unless otherwise indicated, all transactions are on a cash basis. Where an item description includes the word "Account", it means the transaction

was on credit, not cash. It is essential that you understand the real world meaning of the transaction descriptions: if the meaning of any one of them

is not clear, post a question on the Assignments discussion forum.

In completing the assignment, use one general Accounts Receivable for all debtors and one general Accounts Payable for all creditors. Recognise all

prepayments initially as assets. Your Balance Sheet should show assets and liabilities divided into current and non-current.

Show three types of revenue, namely hair styling services, manicure services and facial services. All revenues received were for the month of June.