Eric Chan operates cleaning and gardening business. Mr. Eric contributed $500,000 on 1 June 2015 into his business. The following transactions occurred in the month of June. Ignore GST.

June 1 Eric purchased a car for the business for a total cost of $60,000. The useful life was expected to be 12 years with a residual value of $3,000. Insurance for the car was also purchased for $12,000 p.a.

1 Eric signed a lease agreement to lease a suitable storage shed for a monthly rental of $12,000. Rent for 4 months was paid in advance. He also hired an assistant to help him with cleaning and lawn mowing tasks.

2 The business purchased equipment for a total cost of $180,250. A deposit of $40,000 was paid immediately and the balance was to be paid in 30 days. The equipment was expected to have a useful life of 7 years.

3 Purchased washing supplies for $4,800 cash. Purchased fuel and oil supplies for cash $7,900.

4 Signed a contract with Gulshan Advertiser Newspaper for 12 weeks of advertisements in its weekly newspaper. The business paid $9,600 in advance for these advertisements.

6 Received cash of $800 and $13,500 from clients for cleaning and law mowing services respectively.

8 Signed a contract with a new client to provide cleaning services for a monthly fee of $20,000. The client paid for 3 months’ service in advance.

13 Received cash of $14,000 for lawn mowing services provided to clients during the past week.