Question $1$:

James starts a business as a sole trader$/$proprietor on $01$ February $20$X$7,$ known as The Pop, providing balloons

decorations for parties. Transactions for February are as follows:

$1.$ He invests R $7000$ cash into the business, deposited into the business bank account.

$2.$ The Pop borrows R $3000$ from a James' uncle. Interest of $4\%$ per annum is payable every six months$($ see Transaction

$3.$ The Pop buys equipment for R $2500$ and pays cash.

$4.$ The Pop buys supplies of balloons on credit for R $1000.$

$5.$ The Pop provides balloans for a $21$st birthday and receives R$800$ in cash.

$6.$ The Pop provides balloons for a graduation party on credit for R $1000.$

$7.$ Customer from transaction $6$ pays.

$8.$ The Pop pays assistants wages of R$200$ in cash.

$9.$ The Pop pays, the supplier $($from $4)$ R $700$ in cash.

$10.$ Supplies of balloons costing R $300$ were used during the period.

$11.$ Recognise the interest expense for February $20$X$7.$

You are required to:

b$.$ Prepare a statement of Profit or Loss for the month of February $20$X$7.$

c$.$ Prepare a statement of Changes in Equity for the month of February $20$X$7.$

d$.$ Prepare a statement of finanical positionfor the month of $28$ February $20$X$7.$

QUESTION $2$

Sam Sisulu Started a new busioness entity, The Berverage Wagon on $011$ April $20$X$7$ selling artisanal coffeee from a converted camper van at corporate events.

The transactions of The Berverage Wagon for the month of April $20$X$7$ are as follows:

$1.$ Sam deposited R $10000$ cash in the business bank$2.$ Paid R $600$ for three months'rent, from $01$ April

$2.$ Paid R$600$ for three months rent, from $01$ April to $30$ June.

$3.$ Purchased a second$-$hand camper van at a cost R $7500.$ Paid R $5000,$ in cash with yhe balance to be paid within three

months. The camper van is expected to have a useful life of five years with a residual value of R $1500.$

$4.$ Paid R$300$ got repairs and srvicing of the camper van.

$5.$ Bought supplies of coffee beans, milk and a recylclable cups

$6.$ Took the camper van to a company's premises in Knysna for a week$-$long promotional event and provided coffee to

staff and clients amounting to R $3000.$ The company agreed to pay the full amount within $30$ days.

$7.$ Paid salaries of R $1000.$

$8.$ Distributed R$500$ to Sam for his own use.

$9.$ Received R $2500$ from the company in Kynsna,.

$10.$ Paid the R$800$ owing owing for the purchase of supplies

$\mathrm{.}11.$ Placed an advert that appeared in the April edition of local magazine. The cost of the advert is R$125$ and the amount

will be paid during May.

$12.$ Supplies on hand at the end of April had a cost of R$100.$

$13.$ Recognised the usage of the camper van for the period.

$14.$ Recognised the rent expense for the period.

required to:

a$.$ Record the above transactions in an accounting equation worksheet.

Use the following columns: Assets: Bank, Accounts reeivables, Rent Prepaid, Supplies, Equipment.

Liabilities: include description or account affecteLiabilities: include description or account affected

b$.$ Prepare a statement of Profit or Loss of The Beravage Wagon for the month of $3020$X$7.$

c$.$ Prepare a statement of Changes in Equity of The Beravage Wagonfor the month of $30$ April $20$X$7.$

d$.$ Prepare a statement of finanical position of The Bererage Wagon $30$ April $20$X$7.$