Andrew Joel is a market trader, he opened a business named Joel Co. Thecompany's Trial balance as at 1 December 20X8, appears below:

$

Inventory 5,000

Equipment3,700

Payables 500

Receivables300

Cash at Bank1,200

Capital ?

During December, Andrew Joel:

1.Transferred $300 of his savings into a business bank account

2.Received loan from D.Watson, $100 cheque, repayable in 5 years

3.Bought goods for resale on time, $320 from S.Holmes

4.Bought a motor van by cheque, $500

5.Goods returned to S.Holmes, $20

6.Sold goods to AB Ltd valued $1,000, customer paid by cheque $400

7.A Joel took goods from inventory for his own use, cost $220

8.Sold motor van no longer required for $500 on credit to K.Lamb

9.Purchased goods from C.Swiff $500, less 10% trade discount, pays by cheque

10.Paid $120 to hire a van for December, using debit card

11.Paid staff wages for December, $210 cheque

Requires:

a.Calculating the balance of Capital account as at 1 December, 20X8.

b.Record all the transactions using double entries and ledger accounts (T-accounts).

c.Prepare Trial Balance as at 31 December 20X8.

d.Assuming that Inventory on 31 December 20X8 is $5,130. Prepare IncomeStatement for the period.

e.Prepare Balance Sheet as at 31 December 20X8.