3. Accounting transactions: Amy Earhart Designs: 14 marks Amy Earhart set up her own design agency "Amy Earhart Designs creating custom and on trend T-shirts. During her first month of business in March 2019 Amy had several transactions which are summarised in the worksheet on PAGE 4 of the ANSWER BOOKLET. Amy would like to know if she has made a profit during her first month of trading. There are five accounting transactions missing in the worksheet. Required (a) Record the following five missing accounting transactions into the worksheet on page 4 of the ANSWER BOOKLET and then enter in totals for each column. (i) Sold 150 T-shirts on credit for $5,700 during the month of March, and the cost of sales for the 150 T-shirts are $1,500. The cash is expected to be received in April 2019. (2 mark) Rent expense for the month of March. (1 mark) Amy owed $300 for electricity in March. This will be paid in April. (ii) (iii) (1 mark) (iv) Depreciation for the computer Amy bought at 1 March. She intends to use the computer for two years before replacing it. She anticipates that the residual value will be nil and she would like to use the straight line method of depreciation. (2 marks) A customer paid $400 deposit for 40 T-shits to be delivered in April. (v) (1 mark) 3. Accounting Transactions - Amy Earhart Designs: 14 marks (a) Transaction worksheet (7 marks) ASSETS = LIABILITIES + EQUITY Cash Accounts Receivable Prepaid Rent Inventory Computer Accounts Payable Revenue received in advance Capital Revenue Expenses 20,000 20,000 Detail of transaction Paid money into business account from personal account (1 March) Bought a new computer (1 March) Purchased 500 T-shirts on credit (1 March) -1,920 1,920 5,000 5,000 Paid store rent in advance for March, April and May (1 -2,100 2,100 March) -700 -700 15,280 0 2,100 5,000 1,920 5,000 0 20,000 0 -700 Paid wages in cash for March (31 March) Sub Totals (1) (ii) (iii) (iv) (v) Totals