(a). Using the list of transactions at question B6.2 above, prepare a spreadsheet similar to that presented in Table6.8.

(b). Show the resulting impact on the accounting equation and demonstrate that it remains in balance.

B6.2

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Table 6.8 Spreadsheet analysing transactions into the elements o fthe accounting equation Date Business transactions Assets Liabl ities Ownership interest Irventory Non-currert (stock) of fixed) assets goods Cash at Capitd Revenue Expenses Trade payables contr buted/ withdrawn bank and trade (creditors) receivables (debtors) May 1 The owner provides the business with cash. 50,000 50,000 May 2 Thebusness acquires buildings for cash (30,000) 30,000 May 4 Thebusiness acquires equipment for cash. (6,000) 6,000 May 6 Thebusiness purchases an inventory (stodk) of goods for cash. (6,500) 6500 May 7 The business purchases an inventory (stock)ofgoodson credit from R. Busby and receives an invoice. 5,000 5,000 May 11 Thebusiness pays R. Busby in cashfor the goods it acquired on (5,000) (5,000) credit. May 14 The business pays an electricity bill in cash. (100) 100 May 17 Some of the goods purchased for resale (items costing 3,500) (3,500) 3,500 are removed from the store because sales have been agreed with customers for this date May 17 The business sells some of the purchased goods for cash. May 17 Thebusiness sells the remaining purchased goods on redtto R. 4,000 4,000 3,000 3,000 Welsby and sends an invoice. May 24 R. Welsby pays in cash for the goods obtained on aredt 3,000 (3,000) May 28 The owner dravscash from the busines for personal use (1,000) (1,000) May 30 Thebusiness pays wages to an employeefor thepastmonth (2,000) 2,000 in cash. May 31 The business discovers that its equipment has fallen in value (250) 250 over the month. Totak atthe end of the period 6,400 8,000 35,750 nil 49,000 7,000 5,850 50,150