You are provided with the following financial information for Hel Thee, the owner of a business selling medicine. The business prepares reports at the end of every month so one period for the business is one month.

June 1 The owner invested $150,000 cash into the business to start the business.

June 1 The business paid $5,000 cash for rent for the month of June for the business. The business will pay rent every month until he can find a shop to purchase.

June 2 The business purchased some store furniture for $60,000. The business paid a $25,000 cash deposit and paid for the remainder by going to the bank and getting a loan for the rest of the amount needed to buy the furniture.

June 4 The business purchased medicine (which he will sell in the shop) for $4,600 cash. (Assume the medicine will all be sold by the end of June).

June 5 The business purchased more medicine for $3,100 but will not pay the $3,100 until July. (Assume all of the medicine purchased on the 5^th of June will also be sold by the end of June).

June 11 The business purchased medical supplies for $600 and will not pay for the supplies until later in June. The supplies will be enough to use for 12 months so they can be used in the future to help earn the business money.

June 15 Sales of medicines for the first half of the month were $8,600 to customers who will pay for the medicine in July. The business also had cash sales for the first half of the month a total of $9,300.

June 20 The business paid the full amount owing for the medical supplies purchased on the 11^th of June.

June 25 The owner took out $800 cash from the business for personal reasons.

June 28 The business paid the advertising for June. The total cash paid was $960.

June 29 The business paid wages for the month of June using $4,100 cash.

June 30 Sales of medicine for the second half of the month were $11,800 cash and sales of $6,700 on credit so the customers will pay for them in July.

June 30 The business received $1,080 cash from customers who owed money from the sales made on credit on the 15^th of June.

Required:

(a) Record the events shown above in the accounts shown on page 3 to 5 of this document.

(b) Complete the summary of the balances which is on page 6 of this document. Make sure to complete both columns. I have given you the answer to the first account (cash) you need to show the balance as well. You must identify what each account is asset, liability, equity, income or expenses.

YOU DO NOT NEED TO PREPARE AN INCOME STATEMENT AND BALANCE SHEET FOR THIS TEST.

Cash

Capital

Store Furniture

Medical Supplies

Receivable

Loan Payable

Payable (for the medicine purchased)

Sales Income

Rent Expense

Medicine Expense

Advertising Expense

Wages Expense

Drawings