1.) Prepare an Income Statement, Owners Equity Statement, and Balance Sheet.

Journal Entries for the month of July 2021

Number	Account	Debit ($)	Credit($)
1	Cash	100,000
	Mr X		100,000
2	Salary	15,000
	Cash		15,000
3	Rent	18,000
	Cash		18,000
4	Legal Expense	4,000
	Cash		4,000
5	Purchase	45,000
	Cash		45,000
6	Vehicle (Truck)	112,000
	Mr A		112,000
7	Mr X	5,000
	Cash		5,000
8	Cash	130,000
	Account Receivable	75,000
	Sales		205,000
9	Electricity	3,500
	Cash		3,500
10	Advance Salary	1,000
	Cash		1,000

Trial Balance

Account	Debit ($)	Credit ($)
Capital (Mr X)		100,000
Salary	15,000
Salary Advance	1,000
Legal Expense	4,000
Purchase	45,000
Vehicle(Truck)	112,000
Mr A		112,000
Drawings	5,000
Sales		205,000
Account Receivable	75,000
Electricity	3,500
Cash	138,500
Rent	18,000
Total	417,000	417,000

Adjusting Trial balance

Adjusted Trial Balance
Account	Debit	Credit
Capital (Mr. X)		$100,000
Salary	$15,000
Salary Advance	1,000
Legal Expanse	3,000
Prepaid Expense	1,000
Purchase	45,000
Truck	112,000
Accumulated Depreciation - truck		850
Mr. A		112,000
Drawings	5,000
Sales		205,000
Account Receivable	75,000
Depreciation Expense	850
Electric	3,500
Cash	138,500
Rent payable		2,000
Rent	20,000
Total	419,850	419,850