Topic:Classification and Analysis of Transactions and preparation of worksheet.

Cup Cakes Heaven Ms E Chan(Proprietor)

In the month of March 2011 (beginning) Ms E Chan started a small business selling fine classy and natural cupcakes, coffee/tea and soft drinks. The first transactions for the first month of business are as follows: -

Tran. 1:Open a business bank account and deposited $10,000 of her own personal money.

Tran. 2:Successfully applied and got a bank loan of $10,000 payable within three years.

Tran. 3:Paid $6,000 rent (in advance) for the next three months.

Tran. 4:Purchased inventory: $4,000 on credit payable within 60 days.

Tran. 5:Purchased second hand kitchen equipment $6,000 cash.

Tran. 6:Purchased second hand furniture and fixtures for $2,000 cash.

Tran. 7:For the month of March 2011 the business sales were $10,000. The COGS was $3,000.

Tran. 7B:NOTE: transactions consisted - 70% cash and 30% on credits.

Tran. 8:Paid $2,000 of the short term loan (inventory) suppliers.

Tran. 9:Paid a casual employee $2,800.

Tran. 10:Paid the advertisement agency$600.

Tran. 11:Some of the clients (debtors) paid $2,000 of the outstanding balance.

Tran. 12Ms E Chan withdrew $200 for personal use.

Tran. 13:Adjustment the end of month rent.

Required: -

Prepare 1 :Ten Column Worksheet and enter all the transactions.

Prepare 2:an Income Statement for the month of March 2011.

Prepare 3:Balance Sheet for the month of March 2011.

Prepare 4:an analysis report for the business owner.