Dear sir/madam Joe decided to start a business selling second-hand boats. He had some money of his own, butthis was not enough so he borrowed money...

Dear sir/madam

Joe decided to start a business selling second-hand boats. He had some money of his own, butthis was not enough so he borrowed money (on interest –free terms) from a rich uncle. Thetransactions of the business during March were all cash transactions as follows:March:Day 1: Opened a bank account for the business and deposited $10,000 of his own moneyDay 2: Deposited $20,000 (borrowed from his rich uncle) in the business bank account.Day 3: Paid a fortnight rent ($500) on a yard suitable for use as a boat saleyard.Day 4: Went to an auction and was able to purchase the following boats (including trailers) forcash:Thunderbird: $4,000Chivers: $2,500Swiftcraft: $900Day 5: Furnished the yard office with second hand furniture costing $2,900Day 6: Employed a young nephew to clean the boats.Day 8: Advertising for all three boats in the local paper over two days cost $300, which includedphotos of the boats.Day 9: Sold the Thunderbird for $5,500 cashDay 10: Sold the Chivers for $3,200 cashDay 11: Attended another auction and bought a Bertram for $15,000Day 12: Paid his nephew $20 to clean the new boats.Day 15: Re-advertised the Swiftcraft for three days at a total cost $300.Day 17: Advertised the Bertram in a boating magazine at a cost of $800Day 18: Paid rent for the yard for the next fortnight.Day 19: Was offered $1,200 for the Swiftcraft.Day 20: Accepted the offer for the Swiftcraft and was paid $1,200Day 22: Sold the Bertram for $19,000Day 23: Went to another auction and bought a Sports Fisherman for $8,000.Day 24: Had the Sports Fisherman professionally cleaned at a cost of $180Day 25: Advertised the Sports Fisherman in a fishing feature in the newspaper at a cost of $300.Day 26: Decided things were going so well he would repay his rich uncle $3,000ASM Semester 2/2015 Unit Template Page 23 of 32Day 27: Took the Sports Fisherman on a test-run with a customer and damaged the hull on asubmerged reef.Day 29: Had the Sports Fisherman repaired at a cost of $900Day 30: Sold the Sports Fisherman for $9,300Day 31: Paid the Electricity bill of $180 for the month.Case Study 1: Requirements1. Complete a worksheet for the month using the provided data. (5%)2. Prepare an income statement for the accounting period form the worksheet. (5%)3. Prepare a balance sheet for the accounting period. (5%)