Colombo Commenced Business as a Sole Proprietor Providing Computer Repair

question 46

Essay

Colombo commenced business as a sole proprietor providing computer repair services on 1 June. Colombo contributed land and buildings at $120 000, equipment at $19 000 and cash of $13 000. Transactions during June were as follows:
(a) Complete a worksheet for the month of June, including any final adjustments. Record all property, plant and equipment in a single column of that name.
(b) Prepare the statement of comprehensive income for June and the balance sheet at 30 June.

---

Definitions:

Parking

The act of bringing a vehicle to a stop and leaving it unoccupied for a duration of time in a designated or permissible area.

Shims

Gaskets or spacers of a specific thickness used for setting such things as endplay, preload, or tolerances. May be steel plate or fiber.

Worm Gear

A type of gear consisting of a worm (screw) that meshes with a gearwheel, used in mechanisms where large gear reductions are needed.

Preload

A predetermined force applied to a component, such as a bearing on assembly, usually with the objective of preventing unwanted (end) play in operation.