Reference no: EM132818500

QUESTION - Jack started his own accounting firm Jack & Associates on 1 January 2020 as a sole trader. The following transactions occurred during the month of August 2020:

1^st Jack took contributed a further $100,000 worth of equipment and $20,000 worth of computers.

2^nd Jack paid 10% deposit for a vehicle worth $71,500 (GST inclusive). The remaining amount was financed directly through ANP Bank and paid in monthly instalments over the next 5 years.

12^th Jack invoiced his client South Eastern Engineers $2,860 (including GST) for accounting service on credit.

15^th Jack called South Eastern Engineers to repair some equipment. The service costs $1,210 (including GST), which has not been paid for.

18^th South Eastern Engineers paid Jack the amount outstanding on their account, after netting off the current accounts receivable and accounts payable. i.e. South Eastern Engineers settled the difference.

22^nd Jack paid 80% of the following wage to its employees (Gross Wages of $30,000; PAYG Withheld of $4,500). The remaining amount is to be paid in the month of September 2020.

30^th Jack signed a $50,000 2-year contract to provide accounting service to Celcare Dental Pty Ltd.

Required -

a) Record the above transactions for the month of August 2020 in the General Journal below. GST needs to be accounted for. Narrations are not required.

b) Complete the Cash ledger for the month of August 2020. Assume that the account has a $125,000 DR Opening Balance. Make sure you calculate and show the running balances.