The following business transactions relate to John Clark (financial planner) for his first month of business...

 

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The following business transactions relate to John Clark (financial planner) for his first month of business operations in August 2020. 2020 August 1: Commenced business operations with a $300 000 cash injection of personal funds. 2 Paid monthly rent $1500. 4 Purchased office stationery $2000 on credit from Stationery Plus. 7 Purchased office equipment on credit from Supplies Inc. $10 000. 9 Sent invoice to client M Bigt, for services $3000. 11 Purchased MYOB software for laptop computer $700 cash. 13 M Bigt paid amount outstanding. 14 Met with prospective client and negotiated provision of financial advice for client and family, quoting $5000. Date August 2020 17 Paid car parking permit $220. 19 Withdrew cash from business of $2000 for personal use. 22 Paid WWW Ltd for monthly internet use $182. 29 Received interest from business bank account $15. Required: A. State the impact on the accounting equation for each transaction above. For example: 1 Aug Increased Cash $300,000 Increased Capital $300,000 B. Prepare a worksheet for the month of August 2020 from the above information. Cash Creditor Capital Accounts receivable Office equipment Profit and loss C. Using the business transactions in part B, record the transactions in the ledger of John Clark. D. Prepare a trial balance for John Clark as at 31 August 2020. E. Prepare a statement of profit or loss for the month ending 31 August 2020. F. Prepare a statement of financial position as at 31 August 2020. The following business transactions relate to John Clark (financial planner) for his first month of business operations in August 2020. 2020 August 1: Commenced business operations with a $300 000 cash injection of personal funds. 2 Paid monthly rent $1500. 4 Purchased office stationery $2000 on credit from Stationery Plus. 7 Purchased office equipment on credit from Supplies Inc. $10 000. 9 Sent invoice to client M Bigt, for services $3000. 11 Purchased MYOB software for laptop computer $700 cash. 13 M Bigt paid amount outstanding. 14 Met with prospective client and negotiated provision of financial advice for client and family, quoting $5000. Date August 2020 17 Paid car parking permit $220. 19 Withdrew cash from business of $2000 for personal use. 22 Paid WWW Ltd for monthly internet use $182. 29 Received interest from business bank account $15. Required: A. State the impact on the accounting equation for each transaction above. For example: 1 Aug Increased Cash $300,000 Increased Capital $300,000 B. Prepare a worksheet for the month of August 2020 from the above information. Cash Creditor Capital Accounts receivable Office equipment Profit and loss C. Using the business transactions in part B, record the transactions in the ledger of John Clark. D. Prepare a trial balance for John Clark as at 31 August 2020. E. Prepare a statement of profit or loss for the month ending 31 August 2020. F. Prepare a statement of financial position as at 31 August 2020.