Question

Louisa has been conducting her business as an interior design consultant for the last two years.

On 1^st June, the business had the following assets and liabilities:

Cash $4,500, Accounts Receivable $500, Office supplies $230, Accounts payable $400.

The following transactions occurred during June:

June

7

Purchased a new computer on credit $2500.

9

Purchased office supplies (paper and ink) for $300 cash.

16

Fees received in cash $1650 for interior design advice.

20

Withdrew $1000 for personal use.

22

Sent an invoice to a client $2600 for interior design advice.

24

Paid office rent $1600.

Paid $400 on the accounts payable owing on 1^st June.

29

Received cash for half of the invoice amount sent to client on 22 June.

30

Paid the monthly salary to the part time office receptionist $1500.

Complete a worksheet for the month of June.

Date

June

Cash

Accounts Receivable

Office Supplies

Computer

=

Accounts Payable

Capital

Profit or Loss

(+ Revenue,

- Expense)

Balances

4 500

500

230

400

7

2 500

2 500

9

(-300)

300

16

1 650

1 650

20

(-1 000)

(-1 000)

22

2 600

2 600

24

(-1 600)

(-1 600)

24

(-400)

(-400)

29

1 300

-1300

30

(-1 500)

(-1,500)

Totals

1800

530

2500

2500

-1000

1150

Complete the following table.

Did the business make a profit or loss for the month of June?How much?

Profit $1 150

Total assets at end of June

Total liabilities at end of June

2 500

Total Owner's Equity at end of June

(calculate 2 ways to prove your answer)