Task:

Question 1

On the 1st March 2012 William set up a business as an Accountant. William has had several years’ experience with a large CPA firm in Sydney and when he received a large inheritance from a long lost relative he decided now was the time to take the risk of being his own boss. The following transactions occurred during his first month of the operation.

1. Contributed $80,000 to the accounting practice.

1. William agreed to rent a large office space from his good friend Zia Ahmed.

3. William and his girlfriend spent the morning shopping for office furniture and equipment. He managed to negotiate credit terms for 7 days and received a discount on the furniture and equipment. The original price of was $25,000 but the invoice price is $28,000.

4 Purchased two computers, two printers and a modem for the business, paid $12,000 cash.

Required:

a. Prepare the following statements for the month of March; An Income Statement A Statement of Changes in Equity; and A Balance Sheet 

Question 2 

Required

i) Prepare the statement of financial performance (income statement) for the period ended 30 June 2018.

ii) Prepare the statement of changes in equity for the period ended 30 June 2018.

iii) Prepare the statement of financial position (balance sheet) as at 30 June 2018

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