In April 20X1, Amy Rice opened the Rice & Noodles Restaurant in Sydney.

Amy has asked

you to identify the impact on the balance sheet of every transaction conducted in the first
30 days of trading. Each transaction for the month of April is listed below.

Use the template on the right to record the impact of each transaction. Remember each
transaction will affect more than one account. After recording the impact of each
transaction, calculate the column totals for each balance sheet account. Then replace the 1-Apr
red question marks in the Task#1 tab of the Excel template with the totals for assets, 2-Apr
liabilities, and owner’s equity. 4-Apr
The balance sheet accounting equation (A = L +OE) must balance at the end of this 5-Apr
exercise. Double-check your work to identify the error if this equation is not in balance. 7-Apr
Note that, if the equation balances, this does not necessarily mean that your analysis is 8-Apr
correct – but if the equation does not balance, this certainly means that your analysis is
incorrect. 14-Apr
18-Apr
27-Apr
28-Apr
30-Apr
Date Transaction 30-Apr
1-Apr Amy Rice deposited $40,000 in a newly opened business bank account
TOTAL
Bought $800 on 60-day credit from a local supplier for non-perishable food
2-Apr
items

Purchased a delivery van for $20,000. Twenty percent of the purchase price
4-Apr
was paid in cash and a loan was taken to cover the balance
5-Apr Purchased $1500 of wine stock using cash

7-Apr Banked the $1000 received for cash sales made in first week

8-Apr Paid $2000 rent for April

14-Apr Paid a kitchen assistant and waiter wages of $500 (total)
18-Apr Paid $400 as part settlement of the local food supplier’s account
It was noted that one third of the stock of wine purchased on 5th April has
27-Apr
been sold
28-Apr Banked $1200 received from cash sales
30-Apr It was noted that $150 of food inventory had been used

30-Apr It was noted that credit sales made in the first month of business were $700
 ASSETS LIABILITIES
Acccounts Accounts
Cash At Bank Inventory Equipment Loan Payable
Receivable Payable
$ 40,000
$ 800 $ 800
-$ 4,000 $ 20,000 $ 16,000
-$ 1,500 $ 1,500
$ 1,000
-$ 2,000
-$ 500
-$ 400 -$ 400
-$ 500
$ 1,200
-$ 150
$ 700

$ 33,800 $ 700 $ 1,650 $ 20,000 $ 400 $ 16,000

TOTAL ASSETS TOTAL LIABILITIES
= +
$ 56,150 $ 16,400
 OWNER'S EQUITY
Capital Profit & Loss

$ 40,000

$ 1,000
-$ 2,000
-$ 500

-$ 500
$ 1,200
-$ 150
$ 700

$ 40,000 -$ 250

TOTAL OWNER'S EQUITY

$ 39,750
 In April 20X1, Mark Baker opened the Buns & Bites Bakery Cafe in Melbourne. Mark has
asked you to identify the impact on the balance sheet of every transaction conducted in
the first 30 days of trading. Each transaction for the month of April is listed below.

Use the template on the right to record the impact of each transaction. Remember each
transaction will affect more than one account. After recording the impact of each
transaction, calculate the column totals for each balance sheet account. Then replace the 1-Apr
red question marks in the Task#1 tab of the Excel template with the totals for assets, 2-Apr
liabilities, and owner’s equity. 4-Apr
The balance sheet accounting equation (A = L +OE) must balance at the end of this 5-Apr
exercise. Double-check your work to identify the error if this equation is not in balance. 7-Apr
Note that, if the equation balances, this does not necessarily mean that your analysis is 8-Apr
correct – but if the equation does not balance, this certainly means that your analysis is
incorrect. 14-Apr
18-Apr
27-Apr
28-Apr
30-Apr
Date Transaction 30-Apr
1-Apr Mark Baker deposited $80,000 in a newly opened business bank account
TOTAL
Paid $3600 for food & beverage supplies from a local distributor, and this
2-Apr
payment was made half in cash and half on 60-day credit terms.

Purchased a baker's oven for $50,000. Half of the purchase price was paid in
4-Apr
cash and a loan was taken to cover the balance.
5-Apr Paid $2000 rent for April

7-Apr Banked the $2500 received for cash sales made in first week

8-Apr Paid an assistant baker wages of $800 cash

14-Apr Paid $400 as part settlement of the F&B distributor’s account

18-Apr It was noted that half of the supplies purchased on 2nd April has been sold

The electricity bill for $600 for the first 14 days of April was paid from Cash At
27-Apr
Bank.
It was noted that a further $4000 of wages have been incurred since 8th April,
28-Apr
and $2000 was paid in cash, while the remainder will be paid in May
30-Apr It was noted that $250 of food inventory had been used

30-Apr It was noted that credit sales made in the first month of business were $1000
 ASSETS LIABILITIES
Acccounts Accounts
Cash At Bank Inventory Equipment Loan Payable
Receivable Payable
$ 80,000
-$ 1,800 $ 3,600 $ 1,800
-$ 25,000 $ 50,000 $ 25,000
-$ 2,000
$ 2,500
-$ 800
-$ 400 -$ 400
-$ 1,800
-$ 600
-$ 2,000 $ 2,000
-$ 250
$ 1,000

$ 49,900 $ 1,000 $ 1,550 $ 50,000 $ 3,400 $ 25,000

TOTAL ASSETS TOTAL LIABILITIES

= +
$ 102,450 $ 28,400
 OWNER'S EQUITY
Capital Profit & Loss

$ 80,000

-$ 2,000
$ 2,500
-$ 800

-$ 1,800
-$ 600
-$ 4,000
-$ 250
$ 1,000

$ 80,000 -$ 5,950

TOTAL OWNER'S EQUITY

$ 74,050
 Whales'R'Us is a whale-watching tour Accounts payable
company operating on the Gold Coast, Wages owing
Australia. The financial year ends on 30th
June. The first table on the right lists the tour Accounts receivable
company's account balances as of that date Business bank account
in 20X1.
Food inventory
The owner of Whales'R'Us wants you to Beverage inventory
prepare a simplified income statement, Safety equipment
statement of owner's equity and balance
sheet for the resort as of 30th June 20X1. Merchandise stocks
Tour boats
To complete this task, follow these steps: Wages incurred
(1) In the list of account balances, shade each
cell (i.e. add background colour) according to Loan payable
the colour key provided below; and Rent incurred
(2) Summarise the totals of the major by
completing the templates on the right for the Tax payable
income statement, statement of owner's Sales revenue
equity, and balance sheeet (hints: your colour Food and beverage used
coding should help you categorise each
account balance as to which financial report Pre-paid deposits (e.g. insurance, rent)
it belongs in, and you must start with the Miscellaneous expenses
income statement first)
Owner’s drawings
Owner’s equity

COLOUR KEY
Balance Sheet - Liability
Balance Sheet - Asset
Balance Sheet - Owner's Equity
Income Statement - Revenue
Income Statement - Expenses
Statement of Owner's Equity
 $53,000 Income Statement
$18,000 Total Revenues $675,000
$45,000 Total Expenses $410,000
$155,000 Profit/Loss $265,000
$10,000
$8,000 Statement of Owner's Equity (OE)
$30,000 OE (opening balance) $188,500
$20,000 Net Profit/Loss $265,000
$500,000 Owner's drawings $10,000
$95,000 OE (closing balance) $443,500
$250,000
$130,000 Balance Sheet
$25,500 Total Assets (A) $790,000
$675,000 Total Liabilities (L) $346,500
$73,000 Total Owner's Equity (OE) $443,500
$22,000 Total L + OE * $790,000
$112,000 * A must equal L + OE
$10,000
$188,500
 SpectacularEvents is a professional
conference organiser (PCO) operating across Accounts payable
Australia. The financial year ends on 30th Wages owing
June. The first table on the right lists the Accounts receivable
PCO's account balances as of that date in
20X1. Business bank account
Office supplies
The owner of SpectacularEvents wants you to
prepare a simplified income statement, Audio-visual equipment
statement of owner's equity and balance Wages incurred
sheet for the resort as of 30th June 20X1. Loan payable
To complete this task, follow these steps: Rent incurred
(1) In the list of account balances, shade each Tax payable
cell (i.e. add background colour) according to
the colour key provided below; and Sales revenue
(2) Summarise the totals of the major by Supplies consumed
completing the templates on the right for the Pre-paid deposits (e.g. insurance, rent)
income statement, statement of owner's
equity, and balance sheeet (hints: your colour Miscellaneous expenses
coding should help you categorise each Owner’s drawings
account balance as to which financial report Owner’s equity
it belongs in, and you must start with the
income statement first)

COLOUR KEY
Balance Sheet - Liability
Balance Sheet - Asset
Balance Sheet - Owner's Equity
Income Statement - Revenue
Income Statement - Expenses
Statement of Owner's Equity
 $145,000 Income Statement
$54,000 Total Revenues $1,675,000
$95,000 Total Expenses $1,045,000
$369,000 Profit/Loss $630,000
$52,000
$1,800,000 Statement of Owner's Equity (OE)
$250,000 OE (opening balance) $1,109,500
$500,000 Net Profit/Loss $630,000
$220,000 Owner's drawings $100,000
$51,500 OE (closing balance) $1,639,500
$1,675,000
$123,000 Balance Sheet
$74,000 Total Assets (A) $2,390,000
$452,000 Total Liabilities (L) $750,500
$100,000 Total Owner's Equity (OE) $1,639,500
$1,109,500 Total L + OE * $2,390,000
* A must equal L + OE