Prepare journal entries and a balance sheet from simple transactions North Shore Manufacturing Ltd had this balance sheet:

BALANCE SHEET AS AT 30 JUNE 2022 Assets $ Liabilities and shareholders’ equity $

Current assets Current liabilities Cash 20 000 Accounts payable 80 000 Accounts receivable 70 000 Taxes payable 20 000 Inventories 110 000 Wages payable 10 000 200 000 110 000 Noncurrent assets Noncurrent liabilities Land 200 000 Long-term loan 200 000 Plant and equipment 400 000 Provision for employee entitlements 100 000 Accum. depreciation (100 000) 300 000 500 000 Shareholders’ equity Share capital 200 000 Retained profits 90 000 290 000 700 000 700 000 During July 2022, North Shore Manufacturing experienced the following transactions:

a An amount of $8000 of accounts payable was paid.

b A customer paid one of the accounts receivable, $13 280.

c Additional inventory costing $8000 was purchased on credit.

d The company issued new shares for $50 000 cash.

e The proceeds of the share issue were used to reduce the long-term loan.

f More land costing $54 000 was purchased for $14 000 cash plus a new long-term loan for the rest.

g More equipment costing $33 900 was purchased on credit, with $13 900 due in two months and the remainder as a long-term loan.

Required:

1 Prepare journal entries for each transaction.

2 Prepare a new balance sheet for the company as at 31 July 2022.