1. Prepare journal entry.

2. Prepare ledger.

3. Prepare trial balance.

4. Prepare statement of profit and loss account.

5. Prepare statement of financial position.

b) Set out the Income Statement for the Grace Bert commenced business on 1st January 20X7 with a capital in cash of 10,000. Her transactions in the PQ 5.8 From prime entry to Balance Sheet (1) first month were as follows: Date Transaction 121 Purchased goods for sale from City Stores for 8,200 Purchased more goods for sale for 3,800 21 Sold goods for 1,200 2. Sold goods to Sally Jones for 4,200 Acquired a motor vehicle for 6,000 2 Paid 300 for office stationery 4 Proc Date Transaction Retumed to City Stores goods purchased from them for 1,200 Sold goods to Jim Mitchie for 7.200 Received 5,000 as a long-term, interest-free, loan from Zoe Budd 34 Paid 250 for advertising 7 Jim Mitchie returned goods sold to him for 1,500 91 Sold goods for 1,500 91 Sold goods to S.M. Patel for 3,600 Purchased goods for sale for 2,400 10/1 11,1 Received 3,000 from Jim Mitchie 11.1 Purchased goods for 4,600 from VC Ltd 14.1 Sold goods for 1,400 14.1, Sold goods to Bob Cameron for 1,600 14:1 Paid 150 for stationery 17.1 Grace Bert took 500 for household expenses 19.1 Sold goods to S.M. Patel for 4,200 194 Purchased goods from City Stores for 3,800 191 Paid 150 for advertising 22.1 Paid 90 for vehicle fuel and oil 22 Sold goods to Jim Mitchie for 5,200 Paid 1,800 as staff salaries 24.1 24, Purchased goods for ES,400 from Latiff Bros 271 Sold goods for 1,800 27,1 Sold goods to R. Rajan for 3,400 27.4 Purchased goods from City Stores for 2,600 274 Paid 1,000 as rent 29.1 Rajan returned goods sold to him for 900 If a transaction identifies the other party assume it to be on credit terms. There are no um the month-end and ignore depreciation. Required: a) Record the transactions in appropriate books of prime entry. b) Post them to the Nominal Ledger, Receivables Ledger and Payables Ledger, as appre c) Extract a trial balance from the books of Grace Bert as at 31.1.20X7 d) Prepare the Income Statement for the month ended 31.1.20X7 and a Balance Sheet