Question

Prepare a classified statement of financial position, statement of changes in equity

On the 1^st of August, “Brothers haircut” had these transactions during this month.

1. On August 2, Paid $2200 cash for August salon rent.
2. On August 4, Incurred $380 of advertising costs due in 20 days
3. On August 5, Purchased salon equipment for $120
4. On August 7, Paid for supplies (shampoos, creams, and gels) $350
5. On August 8, received $280 for selling gels
6. On August 12, paid $180 water bill
7. On August 12, paid $160 for electricity bill
8. On August 14, incurred $1050 for the business’s bank loan due in 14 days
9. On August 16, purchased a new chair set up for $400
10. On August 17, paid the amount due for the influencer $380 for advertising
11. On August 19, paid $90 for my internet bill
12. On August 21, received for $200 selling of shampoos
13. On August 23, paid $110 for insurance
14. On August 24, cleaner $110
15. On August 27, paid $1050 for the business’s bank loan
16. On August 28, gas bills $35
17. On August 30, extra salary cost to a new trainee $400
18. On August 30, purchased a new tv screen $600
19. On August 30, paid $6000 in salaries for the month of August.
20. On August 30, received $14000 from haircuts services during the month of August. And $500 of selling gels, creams, and shampoos

Answer 1

Statement of profit and loss for the month os august 2020

Particulars	Amount	Amount
Revenue
Sales of supplies	980
Sale of service	14000	14980
Total		14980
Expenses
Supplies cost	350
Salary	6400
Rent	2200
Advertisement	380
Cost of equipment	120
Other expenses	1085	10535
Net profit		4445

Note: TV has been capitalised and will be depreciated accordingly. SInce, depreciation rate is not given so not provided depreciation. Bank loan includes no interest component.

Chnage in equity cannot be prepared as no deatil about equity balances is given. However, Equity will increase by 4445 as profit.