Using the totals from the columns of the spreadsheet of question B5.1, prepare for the dental practice in the month of April:

(a) A statement of cash flows;

(b) A statement of financial position (balance sheet).

(c) An income statement (profit and loss account).

B5.1

(a) Using the list of transactions at questionA5.5 prepare a spreadsheet similar to that presented in Table5.3.

Transcribed Image Text:

Table 5.3 Spreadsheet analysing transactions into the elements of the accounting equation Date Od. 1 Oct. 2 Oct. 2 Oct. 2 Oct. 7 Oct. 8 Od. 10 Oct. 11 Oct. 14 Od. 15. Oct. 17 Oct. 22 Od. 23 Oct. 24 Od. 28 Oct. 29 Oct. 31 Od. 31 Business transactions of the entity (nature of the ent ty: medical practice) Dr Lee provides the practice with cash to allow business to start The entity acquires medical equipment for cash One month's rent is paid in advance for consulting rooms Office fumiture is purchased on two months' credt from Office Supplies Company The practice purchases medical supplies on credit from P. Jones and receives an invoice Dr Lee pays the medical receptionist for one week's work, 2 to 8 October Four patients are examined, each paying 500 cash The business pays P. Jones in cash for the goods it acquired on credit The business pays an electricity bil in cash DrLee pays the medical receptionist for one week's work, 9 to 15 October Three patients are examined, their employer (Mrs West) beingsentan invoice requesting payment of 500 foreach Dr Lee pays the medical receptionist for one week's work, 16 to 22 October The employer (Mrs West) pays in cash for the examination of three patients Four patents are examined, their employer (Mr East) beingsentan invoice requesting payment of 500 for each Dr Lee draws cash from the business for personal use Dr Lee pays the medical receptoristfor one week's work, 23 to 29 October The medical equipment and office furniture is estimated by Dr Lee to have fallen in value over the month DrLee checks the inventory (stock) of medical supplies and finds that terms costing 350 have been used during the month Totals Cash and bank 50,000 (30,000) (1,900) (300) 2,000 (1,200) (100) (300) (300) 1,500 (1,000) (300) 18,100 Asets Trade Invertory recble (stock) (debtor) 1,500 (1,500) 2,000 2,000 57,200 1,200 (350) 850 Non- arrert ands 30000 6500 (250) 36250 Labiltie Trade pay able (creditor) 6,500 1,200 (1,200) 6.500 Ownership interest Revenue Capital conte buted or withdrawn 50,000 (1,000) 49,000 + 2,000 1,500 2,000 50 700 5.500 Experses 1,900 300 100 300 300 300 250 350 3,900