Q$\mathrm{.}2.$ Geo Broadcasting was organized in May $2002$ to operate as a localtelevision station. The account titles used by sole proprietorship are: Cash Accounts receivable Suppliers Land Building Transmitter Telecasting equipment Film library Notes payable Accounts payable Shaukat Aziz capitalThe transactions for May $2002$ were as follows:

May $1$: Shaukat Aziz deposited Rs$350,000$ cash in the company in thename of business Geo Broad casting.

May $3$: The new company purchased land, buildings, and telecastingequipment previously used by local television station which had gonebankrupt. The total purchase price was Rs$325,000$ of which Rs$120,000$was attributable to the land, Rs$95,000$ to the building, and the remainderto the telecasting equipment. The terms of payment required a cashpayment of Rs$200,000$ and issuance of a note payable for the balance;notes payable due in $3$ years.

May $5$: Purchased a transmitter at a cost of Rs$225,000$ from Shahji Co$.$making cash down payment of Rs$75,000.$ The balance in form of notespayable was to be paid in monthly installments of Rs$12,500,$ beginning May $15.($interest expense is to be ignored$).$

May $9$: Purchased a film library at a cost of Rs$50,000$ from Yash RajProductions, making a down payment of Rs$15,000$ cash, with thebalance on accounts payable in $30$ days.

May $12$: Bought supplies costing Rs$3,190,$ paying cash.

May $15$: Paid Rs$12,500$ to Shahji Co as the first monthly payment on thenotes payable created on May $5.($interest expense is to be ignored$).$

May $25$: Sold part of film library to Red Chillies Inc; cost was Rs$8,900$and the selling price was also $8,900.$ Red Chillies Inc. agreed to pay fullamount in $30$ days.Instructions:a$)$ Prepare Journal entries for the month of May? $(8$ Marks$)$b$)$ Mention the effect of May $12$ th transaction upon the following terms:$1.$ Net income;$2.$ Assets;$3.$ Liabilities; and$4.$ Owners equity? $(2$ Marks$)$