ACCT1110 Financial Reporting and Analysis

Month

Day

Event

February

1

Kerry opened a business bank account to begin the business, contributing $7,500 cash in exchange for shares in the company. The company obtained a bank loan for $35,000. The loan will be repaid in 5 years’ time (treat as a non-current liability). The bank has offered the loan interest-free for the first 6 months, so there is no interest on the bank loan for the first 6 months.

1

Kerry was able to transfer the business phone number to an old mobile phone she owns.

2

A business insurance package, including public liability insurance, was arranged by Kerry with Small Business Insurance Pty Ltd. The annual cost is $1,380, which will be invoiced in twelve monthly instalments. The first monthly insurance expense of $115 was directly debited from the business bank account.

5

Purchased a used coffee van at a cost of $24,500. Various related coffee machines and fridges were also purchased for $2,350.

8

Consumable items, including coffee beans, milk and snacks, were purchased from a supplier for $1,080 on credit.  These items will all be used in the month.

9

A local school requested a quote for attendance at their annual athletics carnival to be held later in the month. The quote provided to the school was for $1,240 with all takings on the day being processed through the school's EFTPOS machine. Terms included in the quote are payment due within 7 days of the carnival date. The school will respond to Kerry within 5 working days.

10

Kerry applied for a one-off mobile food business licence. She paid the fee of $895 by transfer from the business bank account.

12

The local school advised they have accepted the quote and returned the signed quote accepting all terms and conditions.

12

Cash of $1,160 was received from sales at a local sporting club over the prior weekend. It was deposited into the business bank account. Invoices for other work completed on the weekend were issued for $1,275 for which payment has not been received.

14

Planning for the local school job was undertaken by Kerry who arranged for a casual employee to assist on the day. The casual employee, a trained barista, charges $40 per hour and is expected to be needed for 6 hours.

15

Paid $864 of the suppliers’ invoices received on 8 February by transfer from the business bank account.

19

Issued an invoice for $1,240 to the local school for the work completed on the prior weekend.

23

Received payment of the invoice issued on 19 February from the local school for the carnival of $1,240.

26

Recorded revenue from the prior weekend of $1,320 on credit. Cash sales of $1,195 were deposited to the business bank account. The invoices issued on 12 February for $1,275 remain outstanding.

27

Paid Kerry's monthly wages expense together with the casual employee’s wages for the local school event totaling $3,161.

28

Motorpass fuel card statement in the amount of $225 was received. The statement, which represented fuel costs for the coffee van during the month, was paid by transfer from the business bank account.