c) Based on your answer in (b), state whether the balance of cash account is debit balance or credit balance. d) Identify the above business transactions which above transaction(s) no journal(s) is/ are needed. Give reason to support your answer

Question 1 (Total 22 marks) Fado commenced his consulting service business named as "Fado Service Company [Fado] on January 1, 2022. The followings were business transactions during January 2022. Date Business transactions Jan. 1 Fado introduced cash $40,000 and a notebook valued at $17,000 [Hint: create an account Notebook). Jan. 1 Fado rented an office at a monthly rent $1,200. The landlord required Fado to pay 3-month rent in advance covering January to March rental. Jan. 5 Supplies $3,500 were purchased by cash. Jan. 10 Consulting service was provided to Leonardo Company (Leonardo] at $8,000. Leonardo paid Fado on the same date. Jan. 12 An equipment of $550 was purchased from Furniture Accessories Company on credit. Jan. 15 Consulting service was rendered to Kiwi Company [Kiwi). Kiwi received the bill of $6,000 for the payment on the same date. Kiwi paid $2,000 cash at once and the remaining amount to be paid within 10 days. Jan. 19 Fado withdrew cash $2,600 Jan. 23 Kiwi paid to Fado remaining amount of the bill on 15 Jan.. Jan. 26 An service agreement was signed between Fado and Brighton Company (Brighton). Based on the terms of service agreement, Fado will start to provide consulting services on 1 February and Brighton will pay the service fee on the date of service provision. Jan. 27 Fado settled credit purchase of the equipment on Jan. 12. The payment was made in cash. Jan. 31 Fado paid electricity of $700 for January (Hint: create an account named "electricity expense"). Required: a) Write up journals for the above transactions. No explanation of each journal is required. (14 marks) b) Draw up a T-account for cash and do the posting for cash account only. Show the ending balance in the cash account. (2 marks) c) Based on your answer in (b), state whether the balance of cash account is debit balance or credit balance. (2 marks) d) Identify the above business transactions which above transaction(s) no journal(s) is/ are needed. Give reason to support your answer. (4 marks) 2