Record the transactions that took place in January, including all month-end adjustments that are required to recognise income and expenses in the cells provided.

For your convenience, a spreadsheet has been attached. You could work on the expanded spreadsheet and type your answers into Inspera.

Use negative signs but not a thousand separators (e.g., -1300). Numbers only, no dollar sign ($) entered in the cell.

1. 1 January: Nick purchased a stringing machine for $2,400 and paid in cash in full.
2. 3 January: A $2,040 cash sale was made relating to goods that cost $1,320.
3. 4 January: Milton Tennis Club ordered racquets to be delivered to them on 18 January.
4. 4 January: Nick ordered several types of premium tennis racquets from MegaTennis.
5. 5 January: One batch of premium racquets from MegaTennis arrived costing $9,600. The payments were due in three instalments of equal amounts over the next 60 days.
6. 6 January: Ash & John signed a contract with Hewitt Tennis to offer on-site racquet stringing service at an event in February. $3,600 cash was received upfront upon contract signing.
7. 7 January: A batch of budget learner racquets was ordered from Fabulous Racquets, and these were delivered to the store with an invoice of $5,700. Ash & John paid for this purchase in cash in full.
8. 8 January: As the cash balance became critically low after the 7 January payment for racquets, Nick took out a short-term loan of $10,000 under the name of Ash & John to maintain a healthy cash position.
9. 10 January: Nick sold a prepaid package of 10 standard stringing services for $1,800 cash and the customer used up 2 services immediately.
10. 11 January: A $2,850 credit sale was made to Tennyson Tennis Club relating to goods that cost $2,040.
11. 14 January: The fortnightly payroll was paid up until 14 January. Nick was paid $49,920 per annum, averaged $960 per week or $160 per day (6 days of work per week: 1 day off). There were also casual wages totalling $500 for the fortnight. Combine these into a single record as both items belong in other expenses.
12. 18 January: The sale to the Milton Tennis Club was completed and the goods delivered. The sale value was $16,500 and the cost price to Ash and John was $6,390. Milton Tennis Club paid $10,500 upon delivery and made the remaining payment on 5 February.
13. 19 January: A credit sale to Taylor Range Club was made of $240 goods that cost $150.
14. 24 January: The first instalment from the purchase on 5 January was made to MegaTennis and the other two payments were to be made later in February.
15. 26 January: A credit sale was made to Taylor Range Club of $390 goods that cost $270.
16. 28 January: The fortnightly payroll was paid up until 28 January. Nick was paid $49,920 per annum, averaged $960 per week or $160 per day (6 days of work per week: 1 day off). There were also casual wages totalling $600 for the fortnight. Combine these into a single record as both items belong in other expenses.
17. 30 January: The monthly rent for the store is paid for the month of January for $4,200.

Additional information:

1. There is no need to accrue for extra salaries and wages for January as the centre closed between 29 and 31 January due to repairs that were required to be undertaken.
2. You should have four (4) records dated 31/01, these have been labelled in order as 31/01-1, 31/01-2, 31/01-3 and 31/01-4.

Details regarding each adjusting entry record are as follows:

Date	Description of adjustment (e.g., recognition of monthly depreciation)
31/01-1	Recognition of revenue from unearned revenue. Ash & John provided a large volume of stringing service to Queensland Tennis Centre. This service was booked and prepaid for in December last year. The discount bulk charge averaged $150 per service. On 31 January, 133 services were provided.
31/01-2	Recognition of monthly depreciation for the stringing machines. Mrs Stosur decided to recognise depreciation of all stringing machines using the unit-of-production method from 1 January 2022. See Exhibit 1 for the information relating to these stringing machines. Refer to your calculations in questions 2a for the units of production depreciation.
31/01-3	Recognition of monthly depreciation for the van. The van was purchased for $99,000 on 1 July 2019 with an estimated useful life of 10 years and a residual value of $27,000. Depreciation of this van is recognised using the straight-line depreciation method.
31/01-4	Recognition of insurance expense for the month of January based on 31 days. Ash & John last paid the insurance premium of $21,900 on 31 December 2021 to cover 365 days.

The Trial Balance appears across 4 (four) tables. You can increase the size of the tables by dragging the arrow bar in the middle of the screen that separates this information and the table. The size of the tables reflects the size of the screen you are working with.

For your convenience, a spreadsheet has been attached. You can work on the spreadsheet and type your answers into Inspera. The spreadsheet will automatically calculate the totals at the end of the month for the final part of the assessment (Part 6).

question to be answered-- Discuss the 3 different cash flow types (operating, investing and financing) that occurred during January, bringing in the information provided in the case. Provide specific examples and recommendations for February as to what the business should focus on for its cash flow.

Answer rating: 100% (QA)

To discuss the three different types of cash flows operating investing and financing that occurred during January for Ash Johns tennis store we need to analyze the provided information and transaction... View the full answer