P S A 3.9 (j) The business purchases cleaning supplies which are 'environmentally friendly' but cost twice the price of an alternative brand. Joe, a potential investor, doesn't understand why a business would not just try to reduce costs. "Prepare a" short response to Joe explaining why a business would choose to operate this way. Journalize transactions and follow through accounting cycle to preparation of nancial statements. LO4, 5, 6, 7, 8 On 1 July 2019, the following were the account balances of Bulwara Ltd: Cash Accounts receivable Supplies S tore equipment Accumulated depreciation Accounts payable Service revenue received in advance Salaries payable S hare capital Retained earnings Debits $ 5 000 5 600 2 000 20 000 $32 600 Cred its $ 1 000 4 200 800 1 000 20 000 5 600 $32 600 During July the following summary transactions were completed: July 8 10 12 15 17 24 24 25 27 27 Paid $3000 for salaries due to employees, of which $2000 is for July and $1000 is for June. Received $2000 cash from customers in payment of their accounts. Received $800 cash for services performed in July 2019. Purchased store equipment on account $8000. Purchased supplies on account $3400. Paid accounts payable $2000. Paid July/August rent $800. Paid salaries $3000. Performed services on account and invoiced customers for services provided $2300. Received $1300 from customers for future service. Other data: 1. Supplies on hand are valued at $3200. 2. Accrued salaries payable are $1000. 3. Depreciation for the month is $240. 4. Services have been performed in relation to $600 recorded in service revenue received in advance. Require d (a) Prepare a chart of accounts. ( Hint: Refer to Wong Pty Ltd in chapter 2 of this text.) (b) Enter the 1 July balances in the ledger accounts (use T accounts). (c) Journalise the July transactions. (d) Post to the ledger accounts you prepared for part (c) above. Use service revenue, depreciation expense, supplies expense, salaries expense and rent expense. (e) Prepare a trial balance at 31 July before adjusting entries. (f) Journalise and post adjusting entries. (g) Prepare an adjusted trial balance. (h) Prepare a statement of profit or loss and a calculation of retained earnings for July and prepare a statement of financial position as at 31 July 2019. (i) Optional: Using the information in this problem starting at part (e), prepare a worksheet using the format in figure 3.25.