Reference no: EM133049498
Question - Joel Lynch commenced business as an architect on 1st March under the name of Lynch Designs. The following transactions occurred during March:
March 1 Joel deposited $160,000 into a business bank account.
March 2 Purchased a small office building for S660,000 (including GST), paying a deposit of 10% in cash and obtaining a loan from Waco Bank for the balance.
March 5 Paid $3,300 (including GST) for 3 months hire of computer equipment.
March 10 Bought office supplies on credit costing $660 (including GST). 12 Withdrew $750 for a holiday to Queensland.
March 14 Performed design services for customers on credit totaling $6,600 (including GST) 18 Received cash from credit customers, $2,400.
March 28 Contributed a personally owned vehicle to the business valued at $18,000. 31 Paid $10,000 off an amount owing to Waco Bank. At the end of the month $300 of office supplies had been used up.
Required -
a) Analyze and record each transaction in the transaction analysis table provided below. List the account names, indicate the movement (increase/decrease or positive/negative or debit/credit) and the amount in the table provided.
b) Determine the cash position and GST paid at the end of March.
c) Prepare an Income Statement for Lynch Designs for the first month of trading.
d) Prepare a fully classified Statement of Financial Position as at 31 March 2016.