The summarised Balance Sheet of the Minerva Trading Company at 31 January 1984 was:

Fixed assets Current assets:

Stock Trade debtors Cash Owners' interest Current liabilities:

Trade creditors Total assets Total equities 7200 4650 2820

£

17400 14670 ----

£32070 27220 4850 ---

£32070

£1100

£1100

(a) Analyse the effect of the transactions listed below, which were undertaken during February 1984, on the opening Balance Sheet figures:

For example , transaction (i) involves decrease in cash decrease in current liability

(i) Payment of £1100 to trade creditors.

(ii) Purchase of goods for resale on credit terms, £3060.

(iii) Sale of goods for £6200. These goods were originally acquired at a cost of

£2750.

(iv) Payment of wages for month, £375.

(v) Payment of property insurance for the year commencing I February 1984,

£480.

(vi) Payment of motor expenses for February, £246.

(vii) Purchase of additional fixed assets on credit terms, £2400.

(viii) Withdrawal of cash by owner, £420.

(b) Prepare a summarised Income Statement for the Minerva Trading Company for the month of February 1984 and a Balance Sheet at 29 February 1984.