Reference no: EM13377838

June 1 Deposited the $150000 into a business account. Paid three months' rent in advance of $3000. Prepaid rent is treated as a current asset. Hired Jack Smith as a salesperson.

June 2 Purchased shop fittings for $27000 on 30-day credit. Purchased stock from Whoopee Doo wholesalers for $58000, paying $30000 cash with the balance to be paid in 14 days.

June 3 Employed Jill Smith on a casual basis for three days to help with stocking the shop. Payment was $100 per day, paid at the end of three days.

June 4 Paid for installation of phone, fax and internet services from Telstra. Telstra required payment of the connection fee of $750.

June 5 Purchase office equipment on credit from Charge It for $5600.

June 7 Hired caters for an opening party, paying $3100 cash, and advertised it in the local newspaper for the next three weeks, on seven days credit, for $500.

June7-12 Took $3456 in cash sales.

June 12 Paid Charge It. Paid local newspaper. Paid Jack's wages of $1000.

June 14-19 Took $6320 in cash sales.

June 16 Paid Whooppee Doo.

June 21-26 Took $25321 in cash sales.

June 21 Paid Jack $275 in overtime.

June 23 Purchased additional stock of $23000 from Whooppee Doo on 14 days' credit.

June 30 Realised stock was not insured and took out a year's insurance contract at an annual cost of $14400. The first month was paid in advance.

June 30 Paid Jack's wages of $950.

June 30 Counted stock, and found that stock costing $16300 had been sold.

REQUIRED Prepare an income statement and a balance sheet for the toy business as at June 30.