Aurora Goodwin started her own consulting firm, Best Consulting Pty Ltd, on 1 May 2016. The following transactions occurred during the month of May:

Required

(a) Show the effects of the previous transactions on the accounting equation using the following format:

Include margin explanations for any changes in Retained Earnings.

(b) Prepare a statement of profit or loss for the month of May.

(c) Prepare a statement of financial position as at 31 May 2016.

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May 1 2 3 5 9 12 15 17 20 23 26 29 30 Shareholders invested $10 000 cash in the business. Paid $1050 for office rent for the month. Purchased $250 of supplies on account. Paid $75 to advertise in the Auckland News. Received $1250 cash for services provided. Paid $100 for telephone. Performed $3500 of services on account. Paid $2000 for employee salaries. Paid for the supplies purchased on account on 3 May. Received a cash payment of $2250 for services provided on account on 15 May. Borrowed $2500 from the bank. Purchased office equipment for $1200 on account. Paid $125 for electricity.