Teena Spagetti Footsies Co Transactions for November 20X1

Part D

1) Teena Spagetti buys and sells shoes in bulk lots. Her business trading name is Footsies Co. Teena is in her first year of business, so is not yet registered for GST, and uses a perpetual inventory accounting system. Assume transactions are on credit, unless stated as ‘paid’ or for ‘cash’. Teena’s transactions for November 20X1 were as follows:

	$
? Teena commenced business by depositing cash into her business account	30,000	Owners Equity and Asset
? Teena also invested: inventory valued at	14,000
: equipment valued at	27,000
? Land and buildings costing $240,000 were purchased with a cash deposit of	110,000
? The balance was raised by a mortgage with the BNZ Bank	130,000
? Purchased shoes (inventory) on credit from Don Givup Ltd	40,000
? Paid for a patent on a shoe design	6,000
? Delivery expenses on the shoes purchased by Teena were	2,000
? Wages paid were	9,000
? Sold shoes for cash (cost price was 26,000)	91,000
? Paid business insurance	500
? Paid personal insurance	700
? Sold goods on behalf of Glasson’s and received cash commission of	4,000