1."Accounting is all about numbers." Evaluate.

2.Luci and Sherry have decided to lease some newly built premises for the purpose of opening a seafood outlet. They intend to provide a wide range of different products, including a variety of seafood for sale and take-away fish and chips.

Discuss the types of economic decisions that they will be required to make, and the information that they will need to make those decisions. Distinguish non-economic and economic information, identify non-economic decisions that they will also be required to make. Discuss why Luci and Sherry may require the services of an accountant.

3.You have decided that now is the time to buy a new laptop. List the factors that are important in choosing a new laptop and gather relevant information from various sources about different models on the market. Given that you have a maximum of $1600 to spend, identify which model you will buy and discuss the reasons for your choice. Present your answer so as to illustrate the steps required in the decision-making process as discussed in this chapter.

4.Jones' Mower Repairs began operations on 1 August 2019 and completed the followin

transactions during the first month.

1. Darren Jones deposited $35 000 of his personal funds in a current account at a bank

opened in the name of the business.

2. Mower repair equipment was purchased at a cost of $24 000, of which $14 000 was

paid in cash. A loan payable was given for the remainder.

3. Darren collected $5000 from customers for repair services performed.

4. Shop rent was paid for the month of August, $1500.

5. Supplies amounting to $2100 were purchased on credit.

6. Wages of $1200 were paid as well as an account for electricity, $250.

7. Darren paid for the supplies purchased in (5) above.

8. Supplies used during August amounted to $750.

Required

a. Prepare a schedule. List the following assets, liabilities and equity as column headings

under the accounting equation:

Cash at Bank;

Supplies;

Equipment;

Loan Payable;

Accounts Payable;

D. Jones, Capital.

b. Show the effects of each of the transactions on the accounts listed. Indicate totals after

each transaction and complete the schedule.

c. Prepare the following financial statements:

an income statement;

a statement of changes in equity for the month ended 31 August 2019;

a balance sheet as at 31 August 2019 (Narrative Format).