Jack Smith, a baker, has been working at his friend's bakery a part time basis for the past 3 years. As of January 1, 2018," Jack decided to pursue his own dreams of buying and selling pastries. He rented a space from his friend and entered the following transactions during January 2022: Jan 1 Jan 2 Jan 3 Jan 3 Jack invested the following assets into the business: cash, $12,000; office equipment, $30,000 and a bank balance of $80,000. Paid rent for January by cheque $15,000 and purchased motor vehicle on credit from Deals on Wheels Ltd. for $50,000. Bought office furniture from Kurtz JA. Ltd, paying by cheque $15,000 and bought merchandise for resale by cheque $20,000. Jan 4 $40,000. Jan 5 $4,500. Jan 6 Jan 6 Sold merchandise to Candy Lou, for cash $10,000. Sold merchandise on credit to Patrick Poser Sold merchandise on credit to Janice Russell Patrick Poser settled his account with cash receiving a 5% cash discount. (Tip: do a rough check of the balance owed by Patrick Poser) Merchandise valued at $1,050, sold to Janice Russell on January 5, was returned to Jack Smith. A credit note was given to Janice Russell. Jan 7 Sold merchandise on credit to J.F. Mills Ltd $33,000. Jan 8 Bought merchandise on credit from Natalie Lowe $12,000. Jan 11 Received a long-term loan from VTBC Bank for $ 45,000 by cheque and bought stationery for cash $12,000. Jan 15 Bought merchandise on credit from Nikkita Morgan $17,500. Jan 18 account Jan 201 Lodged cash of $13,500 to the business bank Jack took pastries for his daughter's 5th birthday party amounting to $7,000 Jan 20 Paid Natalie Lowe $10,800 in full settlement of the balance outstanding by cheque having received a discount of $1,200 (Tip: do a rough check of the balance owed to Natalie Lowe) Jan 25 Commission was received by cash, $5,000 and paid wages by cash $15,000. Jan 27 Purchased merchandise on credit from Kukupas Creations for $8,000. Jan 30 by cheque. Paid electricity by cash $5,600, insurance $12,000 g) Prepare the Statement of Profit or Loss and the Statement of Financial Position for the period under review. For use in the financial statements, closing stock amounts to $5,000 at the end of the month. Question 2 (18 marks) The Bank Statement and Cash Book (bank columns only) for Jennie Brown for the month of July 2021 are as follows. Bank Statement Debit Credit Balance 2021 $ July 01 Balance 57 O/D July 03 123456 150 207 O/D July 14 Sundry credit 210 3 July 18 Interest Charge July 20 Sundry credit July 22 123457 July 24 Standing order-rent 10 24 21 O/D 350 329 222 107 97 July 25 Sundry credit 410 507 July 25 Sundry credit 121 628 July 26 Credit transfer - Mills 25 653 July 28 423460 100 553 July 30 123459 405 148 Cash Book (bank columns only) 2021 July 14 Cheque G Smith July 20 Cash Sales July 25 Cheque F Jones July 25 Cheque R Black July 30 Cheque W Wayne July 31 Balance c/f $ 2015 210 July 01 Balance b/f 57 350 July 03 Electricity (123456) 150 410 July 22 Wages (123457) 121 July 23 Purchases (123458) 196 July 30 Rent (123459) 9 July 30 Purchases (123460) 4,180 222 415 405 47 1,296 a) Prepare the updated Cash book to show the adjusted balance. (4 marks) b) Starting with the updated cash book balance, draw up a bank reconciliation statement for Jennie Brown for the month of July 2021