Month

Day

Event

February

1

Natasha opened a business bank account to begin the business, contributing $12,000 cash in exchange for shares in the company. The company obtained a bank loan for $38,000. 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 3 months, so there is no interest on the bank loan for the first 3 months.

2

Natasha entered into a 12-month rental agreement over commercial premises with the 12-month cost being $27,000. The first monthly rent expense for the premises of $2,250 was directly debited from the business bank account.

4

Purchased a laptop computer at a cost of $3,000 and a new office desk and chair costing $1,200.  These purchases were paid by transfer from the business bank account.

5

Purchased office supplies costing $1,100 on credit.

10

Hired a new landscape design assistant to help with drafting and finalising landscape designs. The annual salary payable on a pro-rata basis is $42,500. Wages are paid monthly at the end of the month.

15

Recorded revenue for the first half of the month of $6,750 deposited to the business bank account as cash and $4,200 on credit.

18

Paid $880 of the office supplies purchased on 5 February by transfer from the business bank account.

19

Paid electricity expense for February of $250 by transfer from the business bank account.

24

Received cash of $2,750 from customers who purchased earlier in the month on credit.  This cash was deposited to the business bank account.

28

Paid assistant's monthly wages expense of $1,771 by transfer from the business bank account.

28

Recorded revenue for the second half of the month of $10,460 deposited to the business bank account as cash and $3,500 on credit.

28

Entered into a contract for delivery of electric vehicle, at a cost of $60,000 which is to be used for the business. The vehicle will be delivered in 2 weeks’ time. No cash payments have yet been made in relation to the contract.

28

Invoice received from the local nurseries association for advertising of $1,350. The invoice was paid by transfer from the business bank account.