The Transactions for October, the First Month of Operation, for Paul's

question 80

Essay

The transactions for October, the first month of operation, for Paul's Pet Services are summarized below.
1) Paul invested $5,000 of cash, and equipment and furniture worth $2,400 for shares.
2) Paid $1,000 for first month's rent.
3) Paid $500 for advertising and promotion.
4) Received $180 from a client for 6 monthly grooming appointments for a dog.Paul performed the grooming for October.
5) Bought $2,000 worth of inventory for the store and paid immediately.
6) During the month sold 60% of the initial inventory for $2,400 cash.
7) Purchased another $1,000 worth of inventory, to be paid on November 25^th.
8) Estimated that the equipment and furniture would last six years before needing to be replaced or upgraded.Required:
A) Use the accounting equation spreadsheet given to record the transactions.You may add columns to the equation to represent accounts.
B) Prepare the income statement for the month and the balance sheet as at October 31^st.

• A) Use the accounting equation spreadsheet given to record the transactions.You may add columns to the equation to represent accounts.
• B) Prepare the income statement for the month and the balance sheet as at October 31^st.

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Definitions:

Business Ethics

Principles and standards that govern the conduct of individuals and organizations in the business world.

Routine Practices

Established procedures and standards that are followed regularly by organizations or individuals.

Whistleblowing

The act of exposing any kind of information or activity deemed illegal, unethical, or not correct within an organization.

Communication Costs

Expenses associated with the transfer of information, such as telecommunications, mailing, and meetings.