William Murphy opened a car service centre named "Murphy Car services" on 1 June 2022, which he operates as a sole proprietorship business. During the first month of operation, the following transactions and events have occurred. Murphy is now interested to know how well his business came out at the end of the first month of operation. Assume that you are a qualified accountant who undertake accounting assignments of your clients. Murphy has approached you and requested you to prepare the financial reports of Murphy Car services for the month ended 30 June 2022. June 1 1 1 2 2 3 5 7 10 12 Murphy invested $80,000 personal cash in the business by depositing the amount in a bank account named: 'Murphy Car Services'. On the same day, Murphy approached his local bank and borrowed $20,000 as a business loan. Purchased car services equipment for cash $42,000. Purchased a van for business use by paying cash $18,000. Paid $1,200 for renting the car services building (This amount is the monthly rent). Paid advertising, $200 to promote his business via social media. Fuel for the van cost $500 (cash payment). Purchased car services supplies for $8,500 on account from Mega Supplies Pty Ltd. Paid $6,000 cash on 1-year insurance policy effective 1 June 2022. Performed car services for clients and received cash of $5,800. Performed car services for clients and received cash of $6,200. 14 Invoiced the client Billy's Rentals Enterprise $6,850 for car services provided. 21 Paid $6,500 of amount owed on car services supplies to Mega Supplies Pty Ltd. 21 Performed car services for the client Caravan Co. and received cash of $3,500. 21 Paid $5,500 cash for employee salaries. 23 Collected $3,500 cash from Billy's Rentals Enterprise invoiced on 14 June. Billy's Rentals agreed to settle the remainder in the first week of July. Invoiced the client Rowson Pty Ltd. $4,800 for car services. Performed car services for the clients and received cash of $7,200. Murphy withdrew cash of $2,000 from the business. Paid the utility bill $1,300. 25 27 30 30 The following additional information is available. 1. An inventory count shows $2,000 of car services supplies on hand at 30 June 2022. 2. Depreciation on the van and the equipment for the month was $350 and $150 respectively. 3. The insurance for the month June expired on 30 June 2022. 4. Accrued salaries at 30 June were $2,800. 5. Interest on bank loan (4.8%) is due on 1 July 2022. Required: a) Record all the transactions in the general journal. b) Post all the journal entries to the general ledger. c) Prepare the trial balance of Murphy Car services as at 30 June 2022 (unadjusted trial balance before the adjustments). d) Prepare the adjustment journal entries. e) Prepare the adjusted trial balance. f) Prepare closing journal entries. g) Prepare the income statement (based on the adjusted trial balance) of Murphy Car services for the month ended 30 June 2022. h) i) 1) Prepare the statement of changes in equity of Murphy Car services for the month ended 30 June 2022. Prepare the balance sheet of Murphy Car services as at 30 June 2022. William Murphy is now interested to know how well his business came out at the end of the first month of operations. Based on the financial statements prepared, write a brief report (300 words) on financial performance and position of Murphy Car services for the period ended 30 June 2022. William Murphy opened a car service centre named "Murphy Car services" on 1 June 2022, which he operates as a sole proprietorship business. During the first month of operation, the following transactions and events have occurred. Murphy is now interested to know how well his business came out at the end of the first month of operation. Assume that you are a qualified accountant who undertake accounting assignments of your clients. Murphy has approached you and requested you to prepare the financial reports of Murphy Car services for the month ended 30 June 2022. June 1 1 1 2 2 3 5 7 10 12 Murphy invested $80,000 personal cash in the business by depositing the amount in a bank account named: 'Murphy Car Services'. On the same day, Murphy approached his local bank and borrowed $20,000 as a business loan. Purchased car services equipment for cash $42,000. Purchased a van for business use by paying cash $18,000. Paid $1,200 for renting the car services building (This amount is the monthly rent). Paid advertising, $200 to promote his business via social media. Fuel for the van cost $500 (cash payment). Purchased car services supplies for $8,500 on account from Mega Supplies Pty Ltd. Paid $6,000 cash on 1-year insurance policy effective 1 June 2022. Performed car services for clients and received cash of $5,800. Performed car services for clients and received cash of $6,200. 14 Invoiced the client Billy's Rentals Enterprise $6,850 for car services provided. 21 Paid $6,500 of amount owed on car services supplies to Mega Supplies Pty Ltd. 21 Performed car services for the client Caravan Co. and received cash of $3,500. 21 Paid $5,500 cash for employee salaries. 23 Collected $3,500 cash from Billy's Rentals Enterprise invoiced on 14 June. Billy's Rentals agreed to settle the remainder in the first week of July. Invoiced the client Rowson Pty Ltd. $4,800 for car services. Performed car services for the clients and received cash of $7,200. Murphy withdrew cash of $2,000 from the business. Paid the utility bill $1,300. 25 27 30 30 The following additional information is available. 1. An inventory count shows $2,000 of car services supplies on hand at 30 June 2022. 2. Depreciation on the van and the equipment for the month was $350 and $150 respectively. 3. The insurance for the month June expired on 30 June 2022. 4. Accrued salaries at 30 June were $2,800. 5. Interest on bank loan (4.8%) is due on 1 July 2022. Required: a) Record all the transactions in the general journal. b) Post all the journal entries to the general ledger. c) Prepare the trial balance of Murphy Car services as at 30 June 2022 (unadjusted trial balance before the adjustments). d) Prepare the adjustment journal entries. e) Prepare the adjusted trial balance. f) Prepare closing journal entries. g) Prepare the income statement (based on the adjusted trial balance) of Murphy Car services for the month ended 30 June 2022. h) i) 1) Prepare the statement of changes in equity of Murphy Car services for the month ended 30 June 2022. Prepare the balance sheet of Murphy Car services as at 30 June 2022. William Murphy is now interested to know how well his business came out at the end of the first month of operations. Based on the financial statements prepared, write a brief report (300 words) on financial performance and position of Murphy Car services for the period ended 30 June 2022. William Murphy opened a car service centre named "Murphy Car services" on 1 June 2022, which he operates as a sole proprietorship business. During the first month of operation, the following transactions and events have occurred. Murphy is now interested to know how well his business came out at the end of the first month of operation. Assume that you are a qualified accountant who undertake accounting assignments of your clients. Murphy has approached you and requested you to prepare the financial reports of Murphy Car services for the month ended 30 June 2022. June 1 1 1 2 2 3 5 7 10 12 Murphy invested $80,000 personal cash in the business by depositing the amount in a bank account named: 'Murphy Car Services'. On the same day, Murphy approached his local bank and borrowed $20,000 as a business loan. Purchased car services equipment for cash $42,000. Purchased a van for business use by paying cash $18,000. Paid $1,200 for renting the car services building (This amount is the monthly rent). Paid advertising, $200 to promote his business via social media. Fuel for the van cost $500 (cash payment). Purchased car services supplies for $8,500 on account from Mega Supplies Pty Ltd. Paid $6,000 cash on 1-year insurance policy effective 1 June 2022. Performed car services for clients and received cash of $5,800. Performed car services for clients and received cash of $6,200. 14 Invoiced the client Billy's Rentals Enterprise $6,850 for car services provided. 21 Paid $6,500 of amount owed on car services supplies to Mega Supplies Pty Ltd. 21 Performed car services for the client Caravan Co. and received cash of $3,500. 21 Paid $5,500 cash for employee salaries. 23 Collected $3,500 cash from Billy's Rentals Enterprise invoiced on 14 June. Billy's Rentals agreed to settle the remainder in the first week of July. Invoiced the client Rowson Pty Ltd. $4,800 for car services. Performed car services for the clients and received cash of $7,200. Murphy withdrew cash of $2,000 from the business. Paid the utility bill $1,300. 25 27 30 30 The following additional information is available. 1. An inventory count shows $2,000 of car services supplies on hand at 30 June 2022. 2. Depreciation on the van and the equipment for the month was $350 and $150 respectively. 3. The insurance for the month June expired on 30 June 2022. 4. Accrued salaries at 30 June were $2,800. 5. Interest on bank loan (4.8%) is due on 1 July 2022. Required: a) Record all the transactions in the general journal. b) Post all the journal entries to the general ledger. c) Prepare the trial balance of Murphy Car services as at 30 June 2022 (unadjusted trial balance before the adjustments). d) Prepare the adjustment journal entries. e) Prepare the adjusted trial balance. f) Prepare closing journal entries. g) Prepare the income statement (based on the adjusted trial balance) of Murphy Car services for the month ended 30 June 2022. h) i) 1) Prepare the statement of changes in equity of Murphy Car services for the month ended 30 June 2022. Prepare the balance sheet of Murphy Car services as at 30 June 2022. William Murphy is now interested to know how well his business came out at the end of the first month of operations. Based on the financial statements prepared, write a brief report (300 words) on financial performance and position of Murphy Car services for the period ended 30 June 2022.