(a) Using the list of transactions at question A6.4 above, prepare a spreadsheet similar to that presented in Table 6.8.
Refer to A6.4,

Table 6.8,
Spreadsheet analyzing transactions into the elements of the accounting equation

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

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Date Business transactions and events (nature of the entity: wholesale trader) Amount Apr. 1 The owner pays cash into a bank account for the business. 60,000 Apr. 2 The business acquires buildings for cash. 20,000 Apr. 4 The business acquires equipment for cash. 12,000 Apr. 6 The business purchases an inventory (stock) of goods for cash. 8,500 Apr. 7 The business purchases an inventory (stock) of goods on credit from R. Green and receives an invoice. 7,000 The business pays R. Green in cash for the goods it acquired on credit. Apr. 11 7,000 Apr. 14 The business pays a gas bill in cash. 400 Items costing £5,500 are removed from the store because sales have been agreed with customers for this date. Apr. 17 5,500 Apr. 17 The business sells some of the goods removed from store for cash of £6,000. 6,000 Apr. 17 The business sells the remainder of the goods removed from store 4,200 on credit to P. Weatherall and sends an invoice. P. Weatherall pays in cash for the goods obtained on credit. Apr. 24 4,200 Apr. 28 The owner draws cash from the business for personal use. 2,700 Apr. 29 The business pays wages to employees for the past month, in cash. 2,800 Apr. 30 The business discovers that its equipment has fallen in value over the month. 550