Exercise 3.5 (Solution on page 69) Record the following transactions in a set of double-entry accounts: 1 february The owner put 6.000 into a newly-opened business bank account to start a new business. 3 february Bought inventories for 2.600 for cash. 5 February Bought some equipment (non-current assets) for cash for 800. 6 february Bought inventories costing 3.000 on credit. 9 February Paid rent for the month of 250. 10 February Paid fuel and electricity for the month of 240. 11 February Paid general expenses of 200. 15 February Sold inventories for 4.000 in cash; the inventories had cost of 2.400. 19 February Sold inventories for 3.800 on credit; the inventories had cost at 2.300 21 February Lee withdrew 1.000 in cash for personal use 25 February Paid 2.000 to trade payables 28 February Received .500 from trade receivables Required: a) Record the transactions in a set of double-entry accounts b) Balance the relevant accounts and prepare a trial balance. c) Prepare an income statement for the month and a statement of financial position at the month end. Assume that there are no prepaid or accrued expenses at the end of the month and ignore any possible depreciation
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