comments for data sheet.

Comments:

This business was purchased on 1 June 2012. The current date is July 2012, therefore you are preparing financial statements for the period ending 30 June 2012.You will need to refer to the Additional Information section for your adjusting entries. There is no requirement

to make adjusting entries for unearned income. The business is staffed 7 days/week and the level of staffing does not vary day to day. Therefore, the cost of wages does not vary by day of the week. Wages are paid for work performed up to the day before the day of payment. For example, wages owing for work performed on days 1 to 7 are paid on day 8. The rent and insurance periods start on 1 June.

Unless otherwise indicated, all transactions are on a cash basis. Where an item description includes the word "Account", it means the transaction was on credit, not cash. It is essential that you understand the real world meaning of the transaction descriptions: if the meaning of any one of them is not clear, post a question on the Assignments discussion forum.

In completing the assignment, use one general Accounts Receivable for all debtors and one general Accounts Payable for all creditors. Recognize all prepayments initially as assets. Your Balance Sheet should show assets and liabilities divided into current and non-current. Show three types of revenue, namely hair styling services, manicure services and facial services. All revenues received were for the month of June.

The request for worksheet

1.use an accounting worksheet to analyse transactions and perform balance-day adjustments for the month's activities.

2.prepare financial statements: Income Statement, Balance Sheet, and Classified Statement of Cash Flows.

3.The Statement of Cash Flows must be classified, i.e. cash flows must be shown in the categories of operating, investing, and financing cash flows.You must use the Direct Method to prepare the Statement of Cash Flows.

The business has the following opening balances: Hair Styling Supplies $767 Hair Styling Equipment $18,529 Bank Loan (due 2022) $28,727 Account Payable $9,051 Motor Vehicle $39,695 Account Receivable $19,386 Cash At Bank $19,595 Transactions: Date Description Amount 1-Jun Paid General Insurance $2,565 1-Jun Manicure services - Account $1,296 3-Jun Rent of Business Premises $4,442 4-Jun Motor Vehicle Expenses $198 8-Jun Staff Wages $1,114 9-Jun Purchase hair styling supplies - account $407 12-Jun Advertising Expense - Account $679 14-Jun Hair styling fees - Cash $1, 139 14-Jun Facial services fees - Cash $1,798 15-Jun Sundry Expenses $157 18-Jun Hair styling fees - Account $1,866 21-Jun Cash Withdrawals by Owner $511 22-Jun Receive Payment from Account Customers $1,042 22-Jun Staff Wages $1,114 23-Jun Hair styling fees - Cash $1,102 24-Jun Purchase books and magazines $88 25-Jun Hair styling fees - Account $1,575 26-Jun Manicure services - Cash $800 Comments: This business was purchased on 1 June 2012. The current date is July 2012, 30 June 2012. You will need to refer to the Additional Information section for your adjustin unearned income. The business is staffed 7 days/week and the level of staffing does not vary da week. Wages are paid for work performed up to the day before the day of payment. on day 8. The rent and insurance periods start on 1 June.Additional Information: Closing stock of hair styling supplies on 30/6 ('5) Hair styling equipment scrap value ($) Hair styling equipment useful life (years) Rent paid for (months) Insurance paid for (months) Motor vehicle scrap value ('36) Motor vehicle useful life (years) Bank loan interest rates (% per year) 10Jun 13Jun 14-Jun 15-Jun 17Jun 20Jun 21-Jun 22-Jun 23Jun 23Jun 25-Jun 26Jun 29Jun Description Motor Vehicle Expenses Purchase hair styling supplies - account Payment to Account Payable Facial services fees Cash Facial services fees - Cash Payment to Account Payable Purchase books and magazines Sundry Expenses Staff Wages Advertising Expense Account Cash Withdrawals by Owner Advertising Expense - Cash Manicure services - Cash Advertising Expense Cash Manicure services Account Additional cash contributed by owner Receive Payment om Account Customers Staff Wages 694 4,3 82 3,918 11 Amount $288 $483 $700 $1,635 $L638 $849 $63 $112 $1314 $652 $413 $335 $916 $313 $1,127 $4J36 $1355 $1314 \fA B C D E F G H K L M N O P Q BALANCE SHEET INCOME STATEMENT NOTES 2 DATE ASSETS LIABILITIES EQUITY INCOME EXPENSE Pre- Vehicle Office Office Accrued 3 Cash payments Vehicles Acc. Dep'n Supplies Equip't Acc dep'n A/Rec A/Pay Bank loan expenses Capital Drawings 4 o/balances 5 6 7 8 9 10 11 12 13 14