Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The following business transactions relate to John Clark (financial planner) for his first month of business operations in August 2020. 2020 August 1: Commenced

image text in transcribed

The following business transactions relate to John Clark (financial planner) for his first month of business operations in August 2020. 2020 August 1: Commenced business operations with a $300 000 cash injection of personal funds. Required: 2 Paid monthly rent $1500. 4 Purchased office stationery $2000 on credit from Stationery Plus. 7 Purchased office equipment on credit from Supplies Inc. $10 000. 9 Sent invoice to client M Birt, for services $3000. 11 Purchased MYOB software for laptop computer $700 cash. 13 M Bit paid amount outstanding. 14 Met with prospective client and negotiated provision of financial advice for client and family, quoting $5000. 17 Paid car parking permit $220. 19 Withdrew cash from business of $2000 for personal use. 22 Paid WWW Ltd for monthly internet use $182. 29 Received interest from business bank account $15. A. State the impact on the accounting equation for each transaction above. For example: 1 Aug Increased Cash $300,000 Increased Capital $300,000 B. Prepare a worksheet for the month of August 2020 from the above information. Date August 2020 Cash Accounts receivable Office equipment Creditor Capital Profit and loss C. Using the business transactions in part B, record the transactions in the ledger of John Clark.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Advanced Accounting

Authors: Joe Hoyle, Thomas Schaefer, Timothy Doupnik

10th edition

0-07-794127-6, 978-0-07-79412, 978-0077431808

More Books

Students also viewed these Accounting questions