a) Prepare T accounts for Service Revenue, GST Clearing & Cash. (Marks :5) b) Prepare income statement for the month of July 2018 based on c) above. (Marks: 5) c) Prepare statement of changes in Retained Earnings. (Marks: 3) d) Prepare balance sheet as at 31/7/2018. (Marks:7)

Kargil P/L began operations and completed the following transactions during July 2018 as follows: 1Sold ordinary shares for cash for $25,000 2 Set up a petty cash for $200, to be managed by the receptionist. 2Paid quarterly office rent, $3,300 3 Paid cash for office computers, $4,400. This equipment is expected to remain in service for 5 yearsS 3 Employed a full-time draftsman at the rate of $800 per fortnight. 3 Purchased milk, coffee, sugar, tissues etc for office amenities for $49.25 This total amount included GST of $13.74 4 Purchased office furniture on credit for $3,960. The furniture should last for 7 years. 4 Purchased supplies on credit, $990, terms 2/20 net 30 9 Performed Design services for a client on credit, $2,420 terms 1/20, net 30 18 Paid electricity bill for the p 18 Paid wages $800 to the draftsman for the fortnight ending July 17 21 Received $1,980 advance from a client for job to be performed in d July 1-15, $275 September 2017 22 Hired a secretary to be paid $2,055 on the 20thof each month. The secretary began work immediately 23 Performed service for a client & received cash of $4,400 24 Paid for supplies purchased on July 4th 28 Received $1,197.90 on account. Additional Informati 1) Kargil P/L is registered for GST 2) Depreciation on office equipment & furniture is calculated using straight line depreciation. The residual value of computers is nil. The residual value of furniture is $100 (excl GST). 3) Petty cash is reimbursed on the last day of each month. 4) Supplies inventory on hand at the end of the month was $370