Q13. lments of Comptency How to Record the financial transaction. > Producing Financial statements or Reports (Income, Equity Statement & Balance sheet) After several months of planning, John starts an Accounting firm called John consultancy. During his first month he performed several transactions. 1.) Jan 1, 2020: Invested $45,000 in cash start-up investment in the business. 2.) Jan 3: Purchased office supplies $2500 on credit. 3.) Jan 4: John paid the rent for the office $750 to plaza owner. 4.) Jan 7: He equipped the shop by installing the new equipment that she bought on credit for 12000$. 5.) Jan 10: Provided accounting services in total of $3500 to a client on credit. 6.) Jan 14: Paid the office supplies purchased on credit on Jan 3. 7.) Jan 15: Payment of utility bill $860, Salaries $2600, Advertisement Expense $300 by cash. 8.) Jan 18: John provided service to Anna for $7500 on cash 9.) Jan 18: He interviewed a job applicant, and it was successful, and she will receive 400$ per week starting February. 10.) Jan 21: John withdrew $800 cash from the business for personal use. Required: 1. Prepare the journal entries for the preceding transactions. (20pts) Q12. a.) You are planning to start your own business. To record all the information what would the steps in accounting cycle that you need to follow to prepare the Financial statements for your business? (3pts) b.) What are the major financial statements? (3pts) c.) Your friend wants to know about these statements, he is having no idea about the accounting and business. Try to make him understand by explaining the statements. (9pts)