Jones’ Mower Repairs began operations on 1 August 2016 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.
Prepare a worksheet using the above information. List the following assets, liabilities and equity as column headings: Cash at Bank; Supplies; Equipment; Loan Payable; Accounts Payable; D. Jones, Capital. Show the effects of each of the transactions on the accounts listed. Indicate totals after each