BO Inc set up a bookshop and an education consultancy business on January 01st 2019

a) On Jan1st, BO Inc put $65000 cash into a checking account for his new business.

b) On Jan2, BO Inc purchased $4500 computer machines for the shop on terms 5/10,n30

c) On Jan3, he paid $6000 (for six months) cash as prepaid rent a space in the mall

d) Jan 3, He bought 600 Books from Osman at $20 each on account 10/10, n15

e) On Jan4, he bought store equipment for $5000 on credit n15 from Aysha Inc

f) Jan7, He sold 250 Books to Ronald Inc at $100 each on account 2/10, n30

g) Jan7, he paid $3000 in salaries to his staff

h) Jan 8, He paid for his purchase of Jan3 (d)

i) Jan 9, he paid for his purchase from Jan 2.

j) Jan 10th He received payment from Ronald in full for the sale made on Jan7

k) Jan 11, He sold 50 books at $60 each for cash

l) Jan 11, he bought a car for business use for $5000 on terms 5/5,n15

m) Jan 19, He paid for his purchase of January 04th (e)

n) Jan 21, he withdrew $1000 for his personal use (NO tax)

Following is additional information provided for the month just ended

a) Computer machines will have a salvage value of 800, and has a useful life of 6 years

b) Used one month of rent

Required:

- Prepare journal entries for adjustments

- Prepare all financial statements

- Calculate the Gross Profit ratio

- Calculate ROI percentage

- Calculate the current ratio

Give your recommendation with regard to the company