Mr Sparks owns a shop called X-tinguish that sells and services fire extinguishers. X-tinguish has a 28 February financial year end and is not a registered VAT vendor. The above transactions took place during February 2021: 1. Rent for shop space must be paid on the last day of every month in advance. On 28 February 2021, X-tinguish transferred R42 600 into its landlords bank account in respect of the rent for February, March and April. The following journal entry was processed to account for the transaction in the accounting records:

Date Accounts Debit-R Credit - R 28/02/2021 Rent expense 42 600 Bank 42 600 [Recognising rent paid.) 2. The stationary on hand account (asset) has a balance of R5 200. Stationary to the value of R2 800 were still on hand at 28 February 2021. 3. On 28 February 2021 X-tinguish had not yet received their water and electricity bill from the municipality. It was estimated that, based on February's consumption, a water and electricity charge of R1 700 had been incurred during February 2021. 4. On 1 February 2021 X-tinguish renewed its annual insurance policies and paid R21 600 being the insurance premiums for one year (e. insurance coverage for the period 1 February 2021 31 January 2022. The following journal entry was processed to account for the transaction in the accounting records: Date Accounts Debit-R Credit-R 01/02/2021 Prepaid expenses 21 600 Bank 21 600 [Recognising rent paid.] 5. Fees for servicing fire extinguishers provided on credit but not yet billed totalled R3 000 6 Page CACB001 AEGROTAT EXAMINATION JUL 2021 MARKS [13] REQUIRED: a) Show the effect of transactions 1 to 5 ABOVE on the accounting equation, as they would appear in the accounting records of X-tinguish for the month of February 2021 Use the following format: For example: Ms X sold goods worth R1 000 cash to a customer on 1 February 2021: Trans Account Account Asset Equity Liability No debited credited 0. Bank +1 000 Sales +1 000 Show all calculations were applicable. b) In terms of the Conceptual Framework, discuss why you have chosen to debit the particular account you have debited in transaction 1. [7]