Dec-1: Received a cash investment from the owner of the business, totaling $42,440.
This cash infusion likely contributes to the capital or operating funds of the company.
Dec-3: Purchased a truck using cash for $25,500.
This transaction implies an acquisition of a capital asset, the truck, which would be recorded on the balance sheet and depreciated over time.
Dec-4: Purchased supplies on account from Boat World Inc. for $2,425. This means the supplies were obtained, but payment will be made at a later date, usually specified by the terms of the account.
Dec-8: Paid $1,500 in cash for an annual vehicle insurance policy.
This expense is likely recorded in the income statement, impacting the profitability for the period.
Dec-10: Provided shipping services for Tina's Crab Shack on account, totaling $1,200.
This signifies revenue earned but not yet received in cash; it will be recorded as accounts receivable.
Dec-12: Received a cash injection from a bank loan from First Southern Bank, amounting to $15,000.
This loan increases the company's liabilities but also adds to its available cash.
Dec-19: Received $600 in cash on account from Tina's Crab Shack, reducing the accounts receivable and increasing cash.
Dec-23: Paid $1,000 in cash on account to Boat World Inc., decreasing accounts payable and reducing cash.
Dec-27: Baruch, the owner, withdrew $2,500 from the business.
Owner withdrawals are distributions of profits or funds by the owner and are not business expenses.
These transactions impact different aspects of the company's financials, affecting cash flow, assets, liabilities, equity, and ultimately, the profitability and financial position of the business.
Tracking and properly recording these transactions are crucial for accurate financial reporting and decision-making.