Financial balances for the car hire business of Terry's Wedding Cars on 31 March 2024 are provided below in a table in accounting equation form similar to the chapter illustrations.

During April, the business entered into the following transactions.
1. Collected \($10\) 000 of the accounts receivable.
2. Paid the accounts payable in full.
3. Purchased another vehicle for \($56\) 000. Paid \($16\) 000 in cash and signed a loan agreement for the balance.
4. Billed customers for services performed, \($15\) 500.
5. Fuel purchased on credit, \($4250\).
6. Paid expenses in cash, \($6700\) (wages, \($3600;\) car cleaning, \($2050;\) advertising, \($1050).
7. Terry withdrew \($4000\) for personal use.
8. Paid parking fines of \($400\).
Required

(a) List the 31 March balances for assets, liabilities and equity in table form as shown above.

(b) Record the effects of each transaction. Show the total of each column after recording each transaction.

(c) Prepare a statement of financial performance, a statement of changes in equity and a statement of cash flows for the month ended 30 April 2024, and a statement of financial position (account format) as at 30 April 2024.

Transcribed Image Text:

Assets Liabilities + Equity Cash at bank + Accounts + Office + Motor + Fuel = receivable equipment vehicles supplies Accounts payable + $21 000 + $12.000 + $1500 + $108 000 + 0 = $4 500 + Loan payable $32 000 + Terry,capital + $106 000