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Transaction Details

$30$ Sep $2021$

Received a capital payout of $$100,000$ from the partnership with which she used to work. She decided that she needed to invest

$$20,000$ in BHP shares as part of her personal share portfolio and deposit the rest of the payout into a separate business bank account.

$01$ Oct $2021$

Entered into a rental agreement with the local business centre to lease a two connecting rooms from which to run the law practice. The rental is $$1,200$ per month in arrears. She paid a deposit $($bond$)$ of $$2,000.$

Purchased the following office equipment $($total $$25,000),$ office and waiting room furniture $$15,000,$ a computer $$6,000,$ and second hand photocopier $$4,000.$ Total was paid in cash.

$02$ Oct $2021$

Employed a legal secretary to act as her assistant and receptionist. Agreed on a fortnightly salary of $$1,000,$ with the period of service beginning on $7$ October $20$X$1.$

$05$ Oct $2021$

Ordered stationery supplies, such as paper, disks and files to be delivered on $7$ October, and paid for by the October $31.$ Total cost was $$1,500.$

Paid $$300$ cash for advertising to promote the business.

$07$ Oct $2021$

Received ordered goods. Began seeing clients.

$12$ Oct $2021$

Government steps up attempts to get all sole Legal Practitioners to accept a $$5,000$ grant in return for agreeing to certain quality assurance measures and undertaking a certain level of voluntary legal aid. Jobeth sent a letter off for the information.

$15$ Oct $2021$

Paid the telephone bill for $$300$ and the electricity bill of $$100.$

$20$ Oct $2021$

Purchased birthday present for mother for $$250$

$21$ Oct $2021$

Paid legal secretary$$s salary

$28$ Oct $2021$

Sent two cheques $-$ one to Simpson$$s Stationery Supplies to pay off the full amount owing and one to the landlords $($local business centre$).$

$31$ Oct $2021$

Her work performed for October was charged out as shown below. The two columns represent those clients who paid cash immediately and those who requested that their bills be put on one week's credit.

Cash

Credit

Total

$7-13$ Oct

$$300$

$$1,450$

$$1,750$

$14-20$ Oct

$$400$

$$1,500$

$$1,900$

$21-27$ Oct

$$500$

$$700$

$$1,200$

$28-31$ Oct

$$200$

$$400$

$$600$

Total

$$1,400$

$$4,050$

$$5,450$

$31$ Oct $2021$

By the end of the month, Jobeth had received $$1,000$ from the clients who had received credit.

Required:

$$ Using a worksheet, record the above transactions and prepare the financial statements for Jobeth Marshall at October $31,2021.$

$$ Office waiting room furniture is depreciated using the straight$-$line method. Estimated scrap value is $$3,000$ with a useful life of $4$ years. The computer and photocopier are depreciated using the reducing balance method at $15\%$ p$.$a$.$ and $18\%$ p$.$a$.$ respectively.

$$ Advise Jobeth on the results of her first month of business.

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