Accounting Assignment
Recording transactions:
Jones’ Mower Repairs began operations on 1 August 2019 and completed the following transactions during the first month.
1. Darren Jones deposited $35000 of his personal funds in a current account at a bank opened in the name of the business.
2. Mower repair equipment was purchase at a cost of $ 24000 of which $14000 was paid in cash. A loan payable was given for the remainder.
3. Darren collected $5000 from customers for repair services performed.
4. Shop rent was paid for the month of August $1500
5. Supplies amounting to $2100 was purchased in credit.
6. Wages of $1200 were paid as well as an account of electricity$250
7. Darren paid for the supplies purchased in (5) above
Supplies used during August amounted to $750.
Required;
Prepare a schedule and list the following Assets, Liability, and Equity as column headings:Cash at bank; Supplies; Equipment;Loan payable; Accounts payable; D. Jones capital.
Show the effect of each of the transaction on the accounts listed. Indicate totals after each transaction and complete the schedule.
Prepare an income statement and a statement of changes in Equity for the month ended 31 August 2019 and a balance sheet as at 31 August 2019
