(a) Bailasha Shilabukha who had just graduated with a degree in marketing specializing in advertising decided to open an advertising agency in his local town of Bungoma. He had Sh. 290,500 in a savings account which he decided to invest in the business. Using part of the cash, he acquired office equipment at a cost of Sh.55,500 and a motor bike at Sh.90,000. He also decided to rent a furnished office and paid a three months deposit of Sh60,000 and one month rent in advance for the month of March 2021 of Ksh.30,000

Bailasha opened the new business in the name of Baishi Advertising Agency and completed the following transactions during the month of March 2021.

(i) Purchased office supplies, Sh.5,000, and additional office equipment Sh.7,000 on credit.

(ii) Collected Sh. 130,000 fee for an advertising campaign for a client

(iii) Purchased additional office equipment on credit, Sh.11,000

(iv) Paid for advertising that had appeared in a local magazine , Sh.18,000

(v) Paid the office secretarys salary for March, Sh. 18,500

(vi) Paid for supplies and equipment purchased in transaction (a) above

(vii) Completed a marketing research assignment for a client on credit , Sh,85,000

(viii) Collected a fee of Sh.29,500 from the sale of an advertisement for a client

(ix) The client of transaction (g) paid Sh.40,000 of the amount owed.

(x) Paid Sh.9,850 for a magazine advertisement that had already appeared

(xi) James Stewart withdrew Sh.15,000 from the business for personal use.

Required:

Prepare a statement of income and a statement of changes in equity for Baishi Advertising Agency for the month of March 2021