Reference no: EM132523730

Question - Jones' Mower Repairs began operations on 1 August 2019 and completed the following transactions during the first month.

1. Darren Jones deposited $35 000 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 $24 000, of which $14 000 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 -

(a) Prepare a schedule. List the following assets, liabilities and equity as column headings under the accounting equation: Cash at Bank; Supplies; Equipment; Loan Payable; Accounts Payable; D. Jones, Capital.

(b) Show the effects of each of the transactions on the accounts listed. Indicate totals after each transaction and complete the schedule.

(c) Prepare the following financial statements: an income statement; a statement of changes in equity for the month ended 31 August 2019; a balance sheet as at 31 August 2019 (Narrative Format).