QUESTION 0NE (15 MARKS) The following are the transactions relating to the formation of Prasads Mowing Services Pty Limited and its first month of operations January 2018. January 4 The business was registered and the owner invested cash of $700. January 5 The business borrowed $1000 from a relative of the owner January 6 Two lawn mowers costing $480 each and a trimmer costing $130 were purchased for cash. The original list price of each mower was $610, a discount was received because the retailer was having a sale. January 9 Petrol, oil and several packages of garbage bags costing $90 were paid. January 10 Advertising flyers announcing the formation of the business and a newspaper advertisement were purchased for Saturday 13 th of January. The cost of these items, $170, will be paid in 30 days. January 15 During the first two weeks of operations, 48 lawns were mowed. The total revenue for this work was $705; $465 was collected in cash and the balance will be received within 30 days. January 17 Employees were paid $410 for their work during the first two weeks. January 19 Additional petrol, oil and garbage bags costing $120 were purchased for cash. January 31 In the last two weeks of the first month, revenues totalled $920, of which $375 was collected. January 31 Employee wages for the last two weeks totalled $510; these will be paid during the first week of the next month. January 31 It was determined that at the end of the month the cost of the petrol, oil and garbage bags still on hand was $30. January 31 Customers paid a total of $150 due from mowing services provided during the first two weeks and recorded on January 15. 3 | P a g e Required a. Prepare a worksheet using the matrix on the next page. Record each transaction in the appropriate columns of the worksheet. Show the amounts involved and indicate how each account is recorded with + or -. After all transactions have been recorded. Calculate the total for each column followed by calculating total assets, liabilities and owners equity for the first month of the business. b. After you have correctly completed the worksheet : i. prepare an income statement and ii. a balance sheet using narrative or statement format for the month of January for Prasads Mowing Services Pty Limited in the spaces provided.