Maria George incorporated Busy Bookkeepers Pty Ltd, a bookkeeping practice, on 1 January 2016. During the first month of operations, these events and transactions occurred: 

The following chart of accounts is used: (100) Cash, (110) Accounts Receivable, (115) Supplies, (200) Accounts Payable, (210) Revenue Received in Advance, (300) Share Capital, (400) Service Revenue, (500) Salaries Expense, and (510) Rent Expense. 

Required

(a) Journalise the transactions, including narrations.

(b) Post to the ledger T accounts.

(c) Prepare a trial balance as at 31 January 2016.

(d) Prepare a statement of profit or loss for the month of January and a classified statement of financial position as at 31 January 2016.

Transcribed Image Text:

Jan. 2 Shareholders invested $88 000 cash in exchange for shares in the company. 3 Hired a receptionist at a salary of $2000 per month. 4 Purchased $1600 of supplies on account from Abbey Supply Ltd. Paid office rent of $2400 for the month. 7 11 12 17 31 31 Invoiced the clients $3800 for services provided. Received $3000 advance on a management consulting engagement. Received cash of $1600 for services completed for Pete's Plumbing. (These services were not included in the 11 January transaction.) Paid receptionist $2000 salary for the month. Paid 40% of balance owing to Abbey Supply Ltd.