Question 1

March

1 ) Leanne contributed $60,000 of her own funds into a business bank account

2) Leanne rented a small office shop in Ballart. She paid three-months rent

in advance totalling $6,000.

3) Office furniture was purchased for $3,000 cash.

3 ) Paid $2,400 for insurance for 12 months.

4 ) Computer equipment was purchased for $10,000 cash.

4) A three-month subscription for access to international professional

journals was purchased for $2,400 cash.

5) Leanne contributed a motor vehicle to the business valued at $20,000.

6) Leanne invoiced her first client, ABC Ltd, $3,300 for two days work at

local gallery in Melbourne.

7 ) Office stationery was purchased for $800 on 30-day credit terms.

15) Leanne invoiced AAA Ltd and BBB Ltd $4,400 for the consulting service

performed at local galleries.

16) Hired an assistant, Lisa, on a casual contract basis.

17) Received a full payment from her first client, ABC Ltd.

18) Leanne invoiced clients $7,700 for work performed for various local and

regional galleries.

18) Paid a part payment of $200 for the office stationery was purchased in

March 7.

20 ) Leanne withdrew $1,500 for her personal use.

20) Paid $1,200 wages to her assistant.

22) Received $2,200 from credit clients, AAA Ltd and BBB Ltd.

24) Paid telephone and internet bill for March of $270.

25) The City of Ballart, was impressed by Leannes reputation, has agreed to

pay her service in the future at a rate of $1,900 per day.

27 ) Leanne invoiced corporate clients $8,800 for work performed.

30) Paid $1,800 wages to her assistant.

31 ) Leanne withdrew $2,200 from the business for following purposes: $200

was for one-off payment for professional membership joining fees to

Australian Galleries Association, and the $2,000 was for her personal

Easter trip to Europe.

Additional Information:

As at 31 March, $500 of office stationery has been consumed.

Utilities owning at balance date are $275.

Motor vehicle is depreciated at 20% per annum using the straight-line method.

Computer Equipment is depreciated at 30% per annum using the straight-line

method.

Office furniture is depreciated at 10% per annum using the straight-line method.

Round up to the nearest dollar.

Ignore GST and income tax.

Required

You are required to record the following transactions including Additional

Information

Prepare the Income statement (Statement of financial performance) for the

month of March 2022 for Park Professionals.