Mrs Jabaar has recently graduated from her university with a degree in somatology - skincare and...

  

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Mrs Jabaar has recently graduated from her university with a degree in somatology - skincare and beauty therapy. After completing her 12-month internship at Happy Days Beauty Spa, she has decided to start her own spa enterprise. Her business will consist mainly of providing hair, skin and nail cleansing and revitalisation therapies to her customers. She will operate from a spare room at home that will be converted to a therapy room suitable for her to provide her services. On the 1 March 2016 Mrs Jabaar transferred R100 000 from her personal bank account into the bank account of her new business, Wax-it-Off Beauty Spa. For the month of March, she took the time to set up her therapy room and plan her services. She purchased equipment of R15 000 and beauty supplies of R10 000 that she will use to provide her services. These were paid for in cash. On the 1 April, she was ready to provide her services to the public. The following is a record of the transactions for the month of April 2016: On the 2 April, she provided three facials and an underarm wax to a few customers. For these customers, she charged R 215 per facial and R80 for the waxing. . On the 3 April Ms Ebrahim came in and purchased the deluxe beauty package as she will be getting. Mrs Jabaar threaded her eyebrows, provided her with a facial, full body wax, manicure and pedicure. The customer was invoiced with an amount of R1 250 which she will pay by month end. Mrs Jabaar decided to start selling beauty products to customers that they could use in their home. On the 4 April, she approached Stiki-Liki and ordered a range of their products to the value of R7 500. The supplier required a deposit on the order of 20% paid on the date the order is placed and the balance to be paid on delivery. On the 6 April Mrs Jabaar had held an official promotional opening of Wax-it-Off in order to attract customers. Each attendee to the opening was provided with a free sample pack of beauty products and given a pamphlet and presentation highlighting Wax-it-Off's special services. The total cost of the promotion was R3 500. Stiki-Liki delivered the beauty products on the 7 April 2016. . . . . . By the 11 April Wax-it-off had provided beauty services to the value of R 9 300 and had sold beauty products to the value of R2 700. The cost of sales was R1 350. Her promotional opening had been successful and Mrs Jabaar had been experiencing a flood of new customers. She hired a student intern to help her manage the overflow of customers. The intern will be paid R 3 500 per month. On the 16 April, she sold the remaining trading stock of beauty products for an amount of R13 300. On this same day, she ordered additional beauty products from Stiki-Liki to the value of R 9 500. No deposit was paid as Stiki-Liki had allowed full payment on delivery. On the 17 April Ms Ebrahim paid and settled her outstanding debt. By the 21 April Wax-it-Off had provided beauty services of R 15 500. She did a stock count of her service supplies on the 22 April and saw it was running low. She purchased additional service supplies to the value of R11 000, paid for in cash. On the 22 April Mrs Jabaar took beauty products from her trading stock and gave it to her friend as a birthday gift. The cost of these products was R550. . . . The beauty products ordered from Stiki-Liki on the 16 April 2016 had been delivered and paid for on the 24 April 2016. On the 27 April 2016 Mrs Jabaar received a payment of R3 600 from a customer who booked 3 deluxe packages to be completed once a month. The first deluxe package will be provided on the 28 April 2016. By the end of the month 30 April 2016 she noted she provided additional services of R 12 500. • She noted that her beauty service supplies on hand was R 8 500. And the trading stock on hand was R8 950. You are required to: 1. Record the above transactions in the accounting equation for April 2016. Clearly indicate all dates as well as the accounts (and amounts) that are affected. Include all account opening balances that are applicable. Use the following format: Assets Owners' Equity Contribution Distribution Incom Expense S e S Liabilitie S Mrs Jabaar has recently graduated from her university with a degree in somatology - skincare and beauty therapy. After completing her 12-month internship at Happy Days Beauty Spa, she has decided to start her own spa enterprise. Her business will consist mainly of providing hair, skin and nail cleansing and revitalisation therapies to her customers. She will operate from a spare room at home that will be converted to a therapy room suitable for her to provide her services. On the 1 March 2016 Mrs Jabaar transferred R100 000 from her personal bank account into the bank account of her new business, Wax-it-Off Beauty Spa. For the month of March, she took the time to set up her therapy room and plan her services. She purchased equipment of R15 000 and beauty supplies of R10 000 that she will use to provide her services. These were paid for in cash. On the 1 April, she was ready to provide her services to the public. The following is a record of the transactions for the month of April 2016: On the 2 April, she provided three facials and an underarm wax to a few customers. For these customers, she charged R 215 per facial and R80 for the waxing. . On the 3 April Ms Ebrahim came in and purchased the deluxe beauty package as she will be getting. Mrs Jabaar threaded her eyebrows, provided her with a facial, full body wax, manicure and pedicure. The customer was invoiced with an amount of R1 250 which she will pay by month end. Mrs Jabaar decided to start selling beauty products to customers that they could use in their home. On the 4 April, she approached Stiki-Liki and ordered a range of their products to the value of R7 500. The supplier required a deposit on the order of 20% paid on the date the order is placed and the balance to be paid on delivery. On the 6 April Mrs Jabaar had held an official promotional opening of Wax-it-Off in order to attract customers. Each attendee to the opening was provided with a free sample pack of beauty products and given a pamphlet and presentation highlighting Wax-it-Off's special services. The total cost of the promotion was R3 500. Stiki-Liki delivered the beauty products on the 7 April 2016. . . . . . By the 11 April Wax-it-off had provided beauty services to the value of R 9 300 and had sold beauty products to the value of R2 700. The cost of sales was R1 350. Her promotional opening had been successful and Mrs Jabaar had been experiencing a flood of new customers. She hired a student intern to help her manage the overflow of customers. The intern will be paid R 3 500 per month. On the 16 April, she sold the remaining trading stock of beauty products for an amount of R13 300. On this same day, she ordered additional beauty products from Stiki-Liki to the value of R 9 500. No deposit was paid as Stiki-Liki had allowed full payment on delivery. On the 17 April Ms Ebrahim paid and settled her outstanding debt. By the 21 April Wax-it-Off had provided beauty services of R 15 500. She did a stock count of her service supplies on the 22 April and saw it was running low. She purchased additional service supplies to the value of R11 000, paid for in cash. On the 22 April Mrs Jabaar took beauty products from her trading stock and gave it to her friend as a birthday gift. The cost of these products was R550. . . . The beauty products ordered from Stiki-Liki on the 16 April 2016 had been delivered and paid for on the 24 April 2016. On the 27 April 2016 Mrs Jabaar received a payment of R3 600 from a customer who booked 3 deluxe packages to be completed once a month. The first deluxe package will be provided on the 28 April 2016. By the end of the month 30 April 2016 she noted she provided additional services of R 12 500. • She noted that her beauty service supplies on hand was R 8 500. And the trading stock on hand was R8 950. You are required to: 1. Record the above transactions in the accounting equation for April 2016. Clearly indicate all dates as well as the accounts (and amounts) that are affected. Include all account opening balances that are applicable. Use the following format: Assets Owners' Equity Contribution Distribution Incom Expense S e S Liabilitie S

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To record the transactions in the accounting equation for April 2016 we need to identify the account... View the full answer