In 2018, after graduating from the KNUST School of Business, Jade decided to follow her passion and start hair retail shop. Thus, Mane Agenda was born with GHs 5,236 in a business bank account and GHs 515 in a vintage cash box Jade inherited from her grandma (worth Ghs 520 currently). Her mother was supportive of Jades dreams and offered her part of her shop located in the central business district. Jade had to only pay for the maintenance and utility cost of the space. This was calculated as GHs 90 monthly. With the blessing of her mother she set a launch date of 1st September 2018 and started preparing for it. Below is a record of her activities for the first month of her operations.

15th August 2018	The first thing Jade did was to contract some labourers she knew to clean out the shop for her. The labourers charged GHs 15 per day, for 3 days payable in cash at the end of each day. They started immediately the agreement was made.
16th August 2018	Then Jade commissioned a carpenter to make display shelves for her. It took a day to make and cost GHs 605 in total. Jade immediately paid GHs 400 cash and asked the carpenter to return in a week for the balance. The same day, Jade paid GHs 820 online for mannequin heads from MargueInc. It will take a week to be delivered to her.
20th August 2018	Jade decided that she would launch the shop with a party for about 50 people. She placed an order with a caterer for food and drinks worth GHs 500 payable on the day of the party. She also bought party decorations for GHs 200 cash from GHs 3,000. She had withdrawn from the bank that morning.
21st August 2018	First thing the next morning, she met with a wholesaler of hair pieces. She left the meeting with GHs 5,600 worth of supplies for her shop, but paid GHs 2000 cash.
28th August 2018	She picked up a neon sign she had made for the shop and paid GHs500 by an online bank transfer. On that same day, she took delivery of the mannequin heads
30th August 2018	Jade realized that she needed help to get the shop ready for the big day so she got some friends together to help in exchange of refreshments. She ordered pizza and drinks worth GHs100 cash. Whiles chatting with a friend who is an accountant she mentioned that the cost of transportation for business rounds must be recorded. Jade thought back and estimated that she had spent at least GHS100. That evening, the carpenter came for the rest of the money.
1st September 2018	On the launch day, the caterers arrived early to set u and were duly paid by cheque. Every thing had been neatly set up. At the end of the party, only about a quarter of the hair pieces were left and Jades cash box was GHs3,650 heavier. Jade had allowed a few of her close friends to take some pieces on credit, GHs2,015 in total. Jade ended the day quite pleased with herself
2nd September 2018	In order to keep the momentum going, Jade decide to start an Instagram page for her shop. This worked really well and she received orders worth GHs1,150 within a day. She received fulfilment for them and had them delivered within the day. She realised she was running low on stock and made an order for GHs10,000 with a down payment of GHs3000 cash. The hair was bought to her that evening.
4th September	The day went well with total sales of GHs2615 cash by the end of the day. However, Jade realised that walk-in customers wanted places to sit so she ordered for chairs online for GHs350 delivery in days 3 days
5th September	Jade had a very quiet day with no customers coming in but had the surprise of her life when her parents showed up with old VW Golf. They gave her the car worth GHs12,000 on the market as their contribution to her business. Jade accepted it gratefully. Then as a joke she handed the GHs90 maintenance and utility fee to her mother.
6th September	Jade realised her box needed emptying and so she made a deposit of Ghs3,000 in the business bank account. By the end of the day, 2 friends who one of them owes her GHs1,000 paid back through her bank.
7th September	Early that morning, she took delivery of the chairs and paid for them from her cash box. After a customer came in that day to buy hair piece for GHs250, asked for wig-making services, Jade decided to look into it.
8th September	The very next morning, she signed up for an online wig-making class for GHs150. She also went shopping for supplies worth GH315 for the class.
10th September	Jade transferred Ghs3,000 to her supplier to settle her obligations due. The total sales for the day amounted to Ghs2,560 cash, Ghs2,000 of which she banked immediately.
15th September	Between the 11th and 14th of September, Jade sold only GH500 of hair. She decided to use the money to get equipment and supplies to start her wig-making services. Unfortunately, on her way to the market, her purse was snatched containing GHs650 of money from the shop.

REQUIRED;

1. Write out the accounting equation and show the daily change in her assets, liabilities, capital, income and expenses for the stated period of activities.

2. Enter all the transactions into the accounts of Mane Agenda, balance the accounts and prepare a trial balance.

3. Assuming that the closing stock of hair for Mane Agenda is GHS3,000, prepare the Statement of Profit or Loss and the Statement Of Financial Position for the shop for the first month of operation.

4. Discuss how, in your view, the use of her mothers shop should be accounted for.