10 Further practice at recording transactions using statements of financial position

Amy opened a health food store called Glowing with Health on 1 July 2014. The business’s first statement
of financial position was as follows:

The following transactions occurred during the period 2-8 July 2014:

July

2 Paid trade payable $4 300 by cheque

3 Arranged a bank loan for $5 000; funds were transferred to the business bank account

4 Purchased additional shop fittings and paid by cheque $4 000

5 Cash was withdrawn from the bank for business use $800

6 Amy withdrew cash $400 for private use

7 Some shop furniture was sold on credit $1 200

8 Amy invested a further $3 000 in the business from her private funds; the amount was paid into the

business’s bank account

Prepare ledger for the journal transaction above and prepare an updated statement of financial position.

The last statement of financial position (at 8 July 2014) should be set out as a fully classified statement of

financial position.