Question Louisa has been conducting her business as an interior design consultant for the last two years.
Question:
Question
Louisa has been conducting her business as an interior design consultant for the last two years.
On 1st 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 1st 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)
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