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Question 2 Kim Chan established a new business venture (Chan Consulting) on 1 June 2003 and the following events occurred during the first month of

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Question 2 Kim Chan established a new business venture (Chan Consulting) on 1 June 2003 and the following events occurred during the first month of operations: 1 June: A business bank account was opened and capital of $25.000 cash deposited. 1 June Premises were rented at a cost of $1.400 per month and rent for the months of June and July was paid in cash. 1 June: A computer system costing $12,000 was purchased for cash. The system is expected to provide equal benefits throughout its useful life of three years, after which it is expected to be sold for $3,000. 2 June: Interviews were conducted for the position of office assistant. At the conclusion of interviews the position was offered to Craig Jones, who has agreed to start work on 1 July at a salary of $38,000 per year. 3 June: Consultancy services were provided to clients for an agreed fee of $4,500. This amount was received in cash. 7 June: Office supplies were purchased on credit at a cost of $1,500. 15 June: A consultancy service was completed for an agreed fee of $2,400 and the client was sent an invoice requesting payment within 30 days. 28 June: A public liability insurance premium of $1,200 was paid in cash. This insurance policy will cover the period from 1 June 2003 to 31 May 2004. 29 June: Kim Chan withdrew $400 worth of office supplies for her own personal 30 June: A cheque for $1,400 was received from the client who was invoiced on 15 June. An accompanying letter stated that the balance would be paid during July 30 June: A telephone account of $220 for calls and equipment rental during June was received but has not been paid. 30 June: A count of the office supplies revealed $750 on hand. 30 June: An electricity account of $125 for June was received and paid in cash. use. Required Prepare a statement of financial performance for the month of June. (10 marks)

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