CHAPTER 4 Business transactions 1432016
October 1
2
48
9
1011
12
13
14Contributed $50 000 into the business bank account.
Purchased desk and chair for office $10 000 from Office Plus and paid cash.
Paid for office stationery $560 from Suppliers Inc.
Received $1960 for provision of investment services.
Paid mobile phone bill $356.
Received $1280 from a customer for investment services.
Paid energy bill $404.
Owner purchased partner a new Tiffany ring with personal funds $12 200.
Purchased a computer and printer on credit from JB Technologies $5000.
Paid advertising in local paper $600.
Invoiced a client for investment advice $3400.
Paid wages to a casual member of staff $1300.SOLUTION TO 4.1
October
2016 CashAccounts
receivableOffice
furnitureOffice
equipmentAccounts
payable EquityProfit
or loss
1 50 000 50 000
2 (10 000 ) 10 000
4 (560) (560)
4 1 960 1 960
8 (356) (356)
9 1 280 1 280
10 (404) (404)
10 No transaction
11 5 000 5 000
12 (600) (600)
13 3 400 3 400
14 (1 300) (1 300)
Balance $40 020 $3 400 $10 000 $5 000 $5 000 $50 000 $3 420Note: From the above worksheet, profit for the month of October 2016 is $3420. The profit is added to
equity when preparing the balance sheet.
4.2 From the following financial information on the business of Graceville Professional Services
(owner — D Burton), prepare a worksheet and extract a statement of profit or loss for the period
ending 31 December 2016 and a balance sheet as at 31 December 2016.2016
December 5
8
9
10
11
12
14
15
16
17
19
21Owner, D Burton, contributed $200 000 into the entity.
Purchased office furniture for cash $460.
Received from J Beaumont $1340 for services.
Paid electricity account $130.
Paid rent on building $2400.
New neon sign purchased for entity on credit for $1750.
Collected cash fees from clients $1300.
Paid wages to office executive assistant $790.
D Burton injected another $10 000 into the entity.
Sent invoice to a client for services provided $1800.
Received full payment on invoice of 17 December.
Received an invoice from CBD electronics for new office computer $1356.