1. Invested cash in business $10,000
2. Borrow $5000 money from bank.
3. Purchase desk and chair for hairdresser shop for $300 from office work.
4. Provide Party makeup for $130 to customers
5. Paid rent $600 for the month of August
6. Paid $300 for electricity bill
7. Incurred $600 of advertising costs in The Australian, on account
8. Hired a part time accountant on a monthly basis at a salary of $500
9. Paid $1000 salary to staff
10. Customers enquire about 10 bridal party makeup service.
11. Replied to customer $100 each party for 10 party makeup
12. Confirmed order from customer for 10 party makeup for $1000
13. Wedding party service was provided to 10 clients, cash of $500 was received and the balance of $500 was invoiced.
14. Received balance of $500 from transaction11.
15. Paid $1000 for making display furniture at shop
16. Paid $200 for shop insurance to Nab Bank.
17. Paid $250 for electric lights and fixtures.
18. Invested $1000 in business to buy makeup brushes and makeup vouchers to sell in shop.
19. Sold 10 voucher for $100 each in cash and voucher is valid till 31/12/2020.
20. Received makeup fees of $800 in cash for makeup done in March

a) Assume you will start your business on the 1st of August 2020. Undertake market research and prepare a list of possible business events and transactions that will happen during August (Do the market research to make sure the amounts are realistic and include references for your cited information and data). You should provide at least 20 transactions and event related to the activity of your business. Analyse the effect of them on the basic accounting equation and decide which transactions or events should be recorded ( FOR THIS PART I HAVE SLECTED HAIR SERVICE SALON AND PREPARE ABOVE TRANSACTUON, SO I NEED HELP IN ANALYASING THEIR EFFECT ON BASIC ACCOUNTING EUATION AND RECOGNISE WHICH TRANSACTION OR EVENTS SHOULD BE RECORDED)

b) Assuming it is end of August, undertake at least 5 adjusting entries. The amounts and items recorded should be from the information you provided in questions 4 and 5. Record the adjusting entries in the general journal and post them to the ledger accounts and include narrations and dates. Then prepare the adjusted trial balance

c) Prepare a classified statement of financial position, statement of changes in equity, income statement (Profit or Loss) and statement of cash flows for the month ending August.

Answer rating: 100% (QA)

Note 1 Transaction 3 and 4 are recorded on account as nothing is mentioned regarding the mode of ... View the full answer