Extended exercise:

Shadriana Limited was recently incorporated on 1 July. It entered into the following transactions in it's first month of business:

Issued 100,000 shares for 60 cents each, in exchange for cash Took out a loan of $120,000 to purchase machinery, which was purchased using the cash Invoiced customers for $25,000 for services provided IV. Purchased supplies on account valued at $5,500 V. Received prepayment from a customer of $700 for services to be delivered in December VI. Received July internet bill for the amount of $250 VII. Received payment from customers totalling $21,250 for invoices issued in transaction (iii) VIII. Paid wages of $6,780 to employees IX. Paid supplier invoice in full for purchase on account in transaction (iv) X. Paid interest on loan, $580 XI. Paid dividends to shareholders, $2,000 XII. Completed early delivery of $600 worth of the prepaid services in transaction (v) Required A. Record the transactions in the journal. B. Post to the general ledger (Taccounts). C. Prepare a trial balance dated 31 July. D. Prepare an income statement for the month. E. Prepare a statement of retained earnings for the month. F. Prepare a balance sheet at 31 July