David Patton Tax Law Consultancy
uses accrual accounting to prepare financial
statements on a monthly basis, and maintains the following chart of
Cash, A/cs Receivable, Office Supplies, Prepayments, Office Equipment,
A/cs Payable, Bank Loan, Share Capital, Profit & Loss a/c, Fees Revenue,
Drawings, Rent Expense, Utilities Expense, Supplies Expense, Travel
Expenses, Bad Debts Expense, Interest Expense, Tax Expense.
1 August 2009
, David Patton showed the following opening balances: Cash
A/cs Receivable $2,700; Office Supplies $700; Prepayments $650; Office
Equipment $9,700; A/cs Payable 8,100; Bank Loan $5,000.
A list of transactions occurred during August 2009 are provided below.
Analyse the transactions using a worksheet and prepare financial
statements for August 2009:
Aug 1 A trade debtor pays $2,500 owed.
Cash received $5,700 for services provided worth of $12,500; the
remaining was provided on credit.