The following table sets out business transactions and events for Chris Brown Ltd

Required:

(a) Using the accounting equation spreadsheet provided, record the effect of each transaction and events of Chris Brown Ltd for its first year of trading.

(b) From the spreadsheet, prepare a statement of financial position (balance sheet) for Chris Brown Ltd as at 30 November Year 7

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Date Year 6 Dec 1 Dec 1 Business transactions and events of Chris Brown Ltd. (nature of the entity: clothing retailer) Chris Brown pays 50,000 in the bank account of the company at the date of its formation and is issued with 100,000 ordinary shares each of 50 pence nominal value Nov 30 The bank lends 80,000 as a 7-year loan at a rate of 20% per annum to the company The company acquires retail premises for cash The business acquires shop fixtures on 3 months' credit Dec 1 Dec 1 During the year to 30 November Year 7 The company pays for the shop fittings bought on credit on 1 December Year 6 The company purchases inventory (stock) of goods for cash The company purchases inventory (stock) of goods on credit terms The company pays cash to suppliers who have provided goods bought on credit Goods which cost Chris Brown Ltd 120,000 are delivered to customers Customers receive the goods on credit terms. Chris Brown Ltd sends them invoices totalling 210,000 Customers pay in cash for goods sold to them on credit The company pays expenses during the year The company pays wages to employees during the year At the end of the Year 7 Nov 30 Nov 30 The shop fixtures should be depreciated at 20% per year on cost No interest has yet been paid on the bank loan, the interest must be paid by 3 December Year 7 The directors pay a dividend of 24,000 Amount 50,000 80,000 110,000 15,000 15,000 22,000 140,000 115,000 120,000 210,000 182,000 21,000 24,000 24,000