(a) Record the following transactions in a set of double-entry accounts:

(b) Balance the relevant accounts and prepare a trial balance (making sure that it agrees).

(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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1 February Lee (the owner) put £6,000 into a newly-opened business bank account to start a new business 3 February 5 February 6 February 9 February 10 February 11 February 15 February 19 February 21 February 25 February 28 February Bought inventories for £2,600 for cash Bought some equipment (non-current asset) for cash for £800 Bought inventories costing £3,000 on credit Paid rent for the month of £250 Paid £240 for electricity for the month Paid general expenses of £200 Sold inventories for £4,000 in cash; the inventories had cost £2,400 Sold inventories for £3,800 on credit; the inventories had cost £2,300 Lee withdrew £1,000 in cash for personal use Paid £2,000 to trade payables Received £2,500 from trade receivables