McDonald's exercise McDonald's completed the following transactions during June and July 2017. McDonald's started its operations on 1st of June 2017. 1 June: The company established its capital. The capital consisted of 35,000 cash, 55,000 Land, 2,000 Vehicles and 15,000 Buildings. 4 June: The company purchased supplies for 12,000 on credit. 8 June: The company purchased supplies for 2,500, 50% on credit and 50% by cash. 13 June: The company sold goods 14,050 and received cash. 17 June: The company purchased supplies for 30,000, 50% by cash and 50% on credit. 20 June: The company sold goods 20,000, 50% on credit and for the remaining 50% the company received cash. 23 April: The company paid for rent 500. 27 June: The company paid for advertisement 250 and for telephones 235. 30 June: The company received from its customers 9,000. 4 July: A customer paid in advance 250 for future purchases. 8 July: The company paid 2,180 to its suppliers. 12 July: The company received 400 from rent. 13 July: The company took up a short term loan of 1,200. 20 July: The company purchased Vehicles 4,450, 60% of the amount was paid by cash and for the remaining 40% the company signed a lease agreement. 21 July: The company purchased Machinery 5,500 by cash. 26 July: The company sold goods 13,050 and received cash. 27 July: The company sold goods 1,000 on credit. 28 July: The company paid for rent 200. 29 July: The company paid for electricity 250 and for Sundry expenses 100. 31 July: The company prepaid the insurance for the car 120 (the contract refers to the next 12 months i.e. August 2017 - Sept 2017). Required: 1. Record the above transactions in the journal. 2. Post the entries to the ledger, using T-accounts 3. Prepare the trial balance 4. Prepare Income statement (close all necessary accounts using income and expense account) 5. Prepare the statement of financial position