A spreadsheet is provided for use in part (b) of this question. The following list of transactions relates to a television repair business, Peter (Television) Company, during July, which is its first month of business.

Required:

(a) Analyse the above transactions to show the two aspects of each transaction.

(b) Prepare a spreadsheet similar to that presented in Table 5.3 of the text book.

(c) Show that the spreadsheet totals satisfy the accounting equation

(d) Using the spreadsheet from (b), prepare one of each of the following financial statements for the television repair business, Peter (Television) Company, for the month of July:

(i) a statement of cash flows;

(ii) a statement of profit or loss; 

(iii) a statement of financial position (balance sheet).

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July 1 2 3 4 5 6 7 9 10 11 12 13 14 15 Transaction Owner puts cash into the business Buys a vehicle for cash Receives a bill for electricity consumed Purchases stationery for office use, paying cash Pays the electricity bill in cash Pays monthly rental for a computer used to keep customer records Buys spare parts for cash to use in repairs Buys spare parts on credit terms Pays garage service bills for van using cash Fills van with petrol using credit account at local garage, to be paid at the start of next month Carries out repairs for customers for cash Carries out repairs for customers on credit terms Pays wages to an employee Owner takes cash for personal use Owner checks the inventory (stock) of spare parts at the end of the month and estimates it to be worth 1,600 measured at cost price 10,000 6,500 125 250 125 240 150 3,750 360 85 4,060 1,605 850 1,350 1,600