I need the solution to the sub-parts C and D of the problems (Not A and B). Plea

Question

I need the solution to the sub-parts C and D of the problems (Not A and B). 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 He also purchases stock of pet supplies worth S5500. He pays $1500 in cash and agrees to settle the balance in 60 days. Sales for the six months were $6000 cash and $12000 on credit. He received $11000 in cash from customers and paid $3600 to suppliers In April the business bought grooming equipment worth $7500 and paid S1000 in cash taking out a loan of $6500 for the balance. Electricity expense for the period paid in cash totalled $850; and James has received a bill for 1 month owing $310 that he has not yet paid and he wants recorded. 3. 4. 5. 6. 7. 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 James has withdrawn $1400 to pay for personal expenses. 10.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:

Explanation / Answer

PART C: Though you have specifically asked about part c & d only, yet to completely understand the information provided it seems essential to me to have a look at part a & b also to accurately and effectively answer part C.

Subject to the limitation of information provided one advice that I would like to give regarding financial outcome for first Six months is that, the venture is doing good as it is earning profits and also cash is being generated from its operating activity, so it can consider for repayment of loan as it would save interest cost and there is no crunch of cash at present.

PART D: No, James is not a separate legal entity from his business because it has been mentioned that james has established a Pet Warehuse business as a Sole trader and as per law the sole trader/(proprietor) and its business is deemed to be the same person i.e. the trader himself.

It is different from separate accounting entity beacuse it doesn't have the characteristics of a separate accounting entity some of which are mentioned below:

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