Referencing Styles : APA | Pages : 16
Task 4 (20 marks) Jones’ Mower Repairs began operations on 1 August 2016 and completed the following transactions during the first month. 1. Darren Jones deposited $35â€Šâ€¯000 of his personal funds in a current account at a bank opened in the name of the business. 2. Mower repair equipment was purchased at a cost of $24â€Šâ€¯000, of which $14â€Šâ€¯000 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 were purchased on credit. 6. Wages of $1200 were paid as well as an account for electricity, $250. 7. Darren paid for the supplies purchased in (5) above. 8. Supplies used during August amounted to $750. REQUIRED: Prepare a worksheet using the above information. List the following assets, liabilities and equity as column headings: Cash at Bank; Supplies; Equipment; Loan Payable; Accounts Payable; D. Jones, Capital. Show the effects of each of the transactions on the accounts listed. Indicate totals after each transaction. .