On 1 January 20x1, Dr Jack Lane opened a surgery in Wynberg, Cape Town and engaged in these transactions:

1 Opened a bank account under the business name of Dr Jack Lane and paid in an amount of R50 000.

2 Purchased rooms for the use as surgery and consulting rooms for R40 000, paying R10 000 by cheque and raising a 10-year mortgage loan for the balance.

4 Bought equipment and furniture on credit from Medical Suppliers Limited for R9 500.

13 Dr Lane drew a cheque on his personal bank account for R2 500 in part payment of the Medical Suppliers Limited account.

16 Paid R820 for surgical supplies.
17 It was discovered that part of the furniture purchased on 4 January was not suitable for his office needs. So, instead Dr Lane sold it on account to a fellow practitioner, Dr Upson, at its cost of R1 000.

31 Received R700 from Dr Upson on account.

You are required to:

1. Show the impact of each transaction on the accounting equation. Your entries must show the effect on the accounting equation.
2. Show the statement of profit or loss & other comprehensive income of Dr Lane for the month ended on 31 January 20x1. By how much has his equity increased?

3. Show the statement of financial position of Dr Lane as at 31 January 20x1.

4. List other factors that should be accounted for to obtain a more accurate measure of financial performance and position.