Question 5

1. Prepare general journal entries to record the following transactions for XYZ Group that occurred during January 2018:

Date occurred	Transactions
3 January 2018	A bill for utilities used was received $990
10 January 2018	Rent for the current month was paid by cheque $2,000
15 January 2018	A salary of $1,900 was paid by cheque
21 January 2018	Interest income accrued but not recorded $5,000
27 January 2018	Installation of furniture fitted to the clients premises for cash $4,500

2. If you make profit in your business, will you expect to see equity increasing or decreasing? Why?