I need the solution to all the sub-parts of the problems. Please help me James J

Question

I need the solution to all the sub-parts of the problems. Please help me

James Jackson has decided to establish a Pet Warehouse business as a sole trader. For the six months to 30 June 2017 he has the following transactions: 1. James invested $20000 in savings into an account for the business venture. 2. James located a small building that he could rent for $250 per month and pays 6 months rent which he records as an expense 3. He also purchases stock of pet supplies worth S5500. He pays $1500 in cash and agrees to settle the balance in 60 days. 4. Sales for the six months were $6000 cash and $12000 on credit. 5. He received $11000 in cash from customers and paid $3600 to suppliers 6. In April the business bought grooming equipment worth $7500 and paid S1000 in cash taking out a loan of $6500 for the balance. 7. Electricity expense for the peniod paid in cash totalled $850; and James has received a bil for 1 month owing $310 that he has not yet paid and he wants recorded. 8. Advertising cost $650 for the six months was paid in cash 9. James has withdrawn $1400 to pay for personal expenses. 10. At the end of the month there is $2900 worth of pet supplies in stock. James has no accounting knowledge and has asked you to: A. Draw up an excel spreadsheet similar to the template below and enter the transactions into the template adjusting the account balances after each transaction.

Explanation / Answer

Excel Spreedsheet Assets Liablities Equity Transaction No Cash at bank Account Recievable Pet Supplies grooming equipment Account payable Loan Payable J Jackson Capital 1 20000 20000 2 -1500 -1500 3 -1500 5500 4000 4 6000 12000 18000 5 1000 -1000 -3600 -3600 6 -1000 7500 6500 7 -850 -850 310 -310 8 -650 -650 9 -1400 -1400 10 -2600 -2600 Total 16500 11000 2900 7500 710 6500 30690 2 Income Statement as on 30th June 2017 Particulars Amount Sales 18000 Total Revenue (A) 18000 Expenses Advertisement expenses 650 Supplies Expenses 2600 Rent Expenses 1500 Electricity expenses 1160 Total Expenses (B) 5910 Net Income (A-B) 12090 Statement of Change in Owner Equity Particulars Amount in $ Initial Capital 20000 Add: Net Income 12090 Less : Drawings (Withdrawn for self) -1400 Owner Equity 30690 Balance Sheet Amount in $ Assets Cash 16500 Account Receivable 11000 Pet Supplies 2900 Grooming Equipment 7500 Total 37900 Liablities & Equity Account Payable 710 Loan Payable 6500 Owner Equity 30690 Total 37900

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