Jones’ Mower Repairs began operations on 1 August 2016 and completed the following transactions during the first month.

1.    Darren Jones deposited $35 000 of his personal funds in a current account at a bank opened in the name of the business.

2.    Mower repair equipment was purchased at a cost of $24 000, of which $14 000 was paid in cash. A loan payable was given for the remainder.

3.    Darren collected $5000 from customers for repair services performed.

4.    Shop rent was paid for the month of August, $1500.

5.    Supplies amounting to $2100 were purchased on credit.

6.    Wages of $1200 were paid as well as an account for electricity, $250.

7.    Darren paid for the supplies purchased in (5) above.

8.    Supplies used during August amounted to $750.

Required

A.    Prepare a schedule. List the following assets, liabilities and equity as column headings: Cash at Bank; Supplies; Equipment; Loan Payable; Accounts Payable; D. Jones, Capital. 

B.    Show the effects of each of the transactions on the accounts listed. Indicate totals after each transaction and complete the schedule.

C.    Prepare an income statement and a statement of changes in equity for the month ended 31 August 2016, and a balance sheet as at 31 August 2016.