Recording transactions II Dick Dewy forms a company, Greenwood Transport plc, on 1 June. During the first week of its existence, it invests in the assets necessary to begin operations as a haulage company. Its balance sheet on 8 June is set out below:

Greenwood Transport plc Balance sheet at 8 June year 1 Assets Equities Current assets Current liabilities Cash 11,800 Accounts payable 200 Short-term securities 5,000 Office supplies 200 Prepaid insurance (for one year) 1,200 Prepaid rent (for three months) 1,500 19,700 Fixed assets Shareholders’ equity Truck 20,000 Office equipment 500 Share capital 40,000 20,500 Total 40,200 Total 40,200 The company makes its first shipments on 9 June. The following is a summary of the transactions and events that occur between 9 June and the end of the month.
1 Revenues from haulage of goods in June amount to 3,500, of which 500 represents cash business and the balance is undertaken on the company’s normal credit terms (in this case, unpaid amounts are due within 30 days of invoice date).
2 Fuel costs during June total 300, all paid in cash.
3 When Dewy bought the truck, the dealer agreed to provide free servicing, valued at 240, in the first six months. No service work was performed in June. (Dewy obtains fuel and servicing work from separate suppliers.)
4 The company buys a further 50 of supplies on credit. The cost of the supplies on hand at the end of the month is 150.
5 Wages earned by company staff in June total 1,800. By the end of June, the company has paid 2,000 of wages, including 200 of advance wages to staff who’ll be on vacation in early July.
6 By month-end, customers have paid 1,000 of the 3,000 they owe to the company.
7 At the end of June, the company recognises depreciation of 300 on the truck. (Depreciation on the office equipment is very small and is considered immaterial to the monthly accounts.)
8 At the same time, it recognises one month’s use of rented office space and one month’s benefit from insurance coverage on the truck.
9 Short-term securities yield 50 of interest revenue, all of which is received in cash.
10 Income tax on company profits in June is expected to be 150. None of this estimated liability has been paid by the end of the month.
Required

(a) Record the relevant transactions and events in 1 to 10 on a worksheet similar to that used in Exhibits 3.1–3.3.

(b) Prepare accounts (income statement and balance sheet) for the month of June for Greenwood Transport plc.AppenedixLO1