CHAPTER 4 Business transactions 1534.35 Comprehensive problem of preparing a worksheet, statement of profit or loss and
balance sheet LO5
Rotterdam Financial Services Pty Ltd, managed by Saphira Browne, provides accounting,
taxation and financial planning services to clients residing in the inner Melbourne
area. The balance sheet for Rotterdam Financial Services Pty Ltd as at 1 October 2018 is as
follows.Rotterdam Financial Services Pty Ltd
Balance sheet as at 1 October 2018Assets
Cash
Accounts receivable
Supplies
Building$ 58 140
6 840
13 680
139 080
Total assets $ 217 740
Liabilities
Accounts payable $ 28 500
Equity
Capital 189 240
Total liabilities and equity $ 217 740During the three months from October to December, Rotterdam Financial Services Pty Ltd con-
ducted the following transactions:OctoberNovemberDecember44
10
14
20
2831
7
11
15
23
30
8
15
23
29
30Invoiced customer for various accounting and tax services $10 032, to be paid by
customer at end of month.
Purchased new office furniture $17 400 cash.
Invoiced customer for financial planning services completed $18 240.
Received $9120 payment from customers who have previously been billed.
Paid supplier $4560 for office supplies purchased last month.
Received a $5380 invoice from the Melbourne Times newspaper for advertising, due to
be paid in two weeks.
Received payment from customer invoiced on 1 October.
Paid employee salaries $17 680 cash.
Paid invoice from the Melbourne Times for invoice received on 28 October.
Received gas and electricity bill to be paid one month later $274.
Provided tax services to customers $3876 cash.
Paid employee salaries $1140 and shop rent $1368 cash.
Paid gas and electricity bill dated 15 November.
Owners contributed a further $34 200 cash to the business.
Provided accounting (Quicken) services to customers for $2280, payment due in one month.
Received water bill $536 to be paid in three weeks.
Paid employee salaries $912.
Paid bank fees incurred directly out of business’s bank account $23.Required
a. Prepare a worksheet for Rotterdam Financial Services Pty Ltd for the business transactions
from October to December 2018.
b. Using the data given above, prepare a statement of profit or loss for the quarter ending
31 December 2018 and a balance sheet as at 31 December 2018 for Rotterdam Financial
Services Pty Ltd.
c. Comment on the profit/loss for the business for the three months ending 31 December 2018.