Kim Chan established a new business venture (Chan Consulting) on 1 June 2022 and the following events occurred during the first month of operations:
1 June: A business bank account was opened and capital of $25,000 cash was deposited.
1 June: Premises were rented at a cost of $1,400 per month and rent for the months of June and July was paid in cash.
1 June: A computer system costing $12,000 was purchased for cash. The system is expected to provide equal benefits throughout its useful life of three years
2 June: Interviews were conducted for the position of office assistant. At the conclusion of interviews the position was offered to Craig Jones, who has agreed to start work on 1 July at a salary of $58,000 per year.
3 June: Consultancy services were provided to clients for an agreed fee of $4,500. This amount was received in cash.
7 June: Office supplies were purchased on credit at a cost of $1,500. 15 June: A consultancy service was completed for an agreed fee of $2,400 and the client was sent an invoice requesting payment within 30 days.
27 June Bought a new printer $9,000 paying $5,000 cash and the remainder on credit
28 June: A public liability insurance premium of $1,200 was paid in cash. This insurance policy will cover the period from 1 June 2022 to 31 May 2023.
29 June: Kim Chan withdrew $400 worth of office supplies for her own personal use.
30 June: A telephone account of $220 for calls and equipment rental during June was received but has not been paid.
REQUIRED:
A. Prepare a worksheet using the format presented below to record each transaction for the month ended 30 June 2021.
B. Total the column amounts and prove the accounting equation is in balance.