Prepare journal entries, income statement and balance sheet in the books of

Mr ONeil of Wonder Records

June 1 Commenced business with 30,000 of capital which was paid into a business bank account.

1 Transferred 1,000 from the bank to the petty cash.

2 Purchased equipment for 5,000 by cheque.

3 Paid rent of 150 by bank transfer.

4 Paid wages 200 by bank transfer.

5 Purchased a stock of 5,000 records for 5,000 on two months credit from A Black.

6 Sold 2,500 records for 5,000, for cash which was paid into the bank account

7 Returned goods of 1,000 to A Black which were faulty.

8 Customers returned faulty goods to us of 100 in exchange for a cash refund.

10 Sale of goods 500 to V Ahmed on credit terms of one month with a trade discount of 5%.

11 Sale of goods 100 to S Broady on credit terms of three months, with a 5% cash discount for prompt payment.

20 S Broady unexpectedly received some money and paid his bill early by cheque.

30 Paid A Black in full by cheque, after deducting 100 for prompt payment.