Question Maxon Ltd. is a new entrant to the market for providing widgets to consumers in Australia. As the business commences, various business activities will occur. Exhibit 1 provides a list of the activities that have taken place in the first month of operation. Exhibit 1 Business Activities for Maxon Ltd. SL Date a 2018 Business Activi 1 Maxon deposited $100,000 of his personal funds in a current account at a bank opened in the name of the business. He also provided | Pay $14,000 to landlord for premises, 50% of the amount is a | Purchase office equipment for $5,000, of which 40% was paid ment of S50,000, which was paid from his account 2 | 4-Jan-18 refundable d the remainder is the first month's rent 3 | 4-Jan-18 instantly. The equipment has an estimated life of four years with no salvage value loan must be repaid in 4 years total cost of $15,000. Payment is due in Assume that these are costs that were incurred for this month so far 45-Jan-18 Borrow $25,000 from a friend for working capital. This interest-free 5 1Jan-18 Purchase and receive raw materials to manufacture 1,500 widgets at a 614-Jan-18 Wages of $500 were paid as well as an account for electricity, s250. 7 5-Jan-18 Equipment was purchased at a cost of $16 000, of which $10,000 was in cash. A loan le was given for the remainder of $6 000 8 18-Jan-18 921-an-18 Hire a consultant to conduct a survey on the needs of the local nd $12,000 on TV and radio advertising during the month. community. The assistant works a total of 8 hours, at $30p.h., prior to the end of the month but will not be paid until Fe 10 31-Jan-18 Delivered 100 widgets at $20 each to the customer on account. Using the information provided in Exhibit 1 you are required to do the following [Adjusting ntries are not required i) Following the format in Exhibit 6 (page 51) of your text book, identify the abowe accounting entries ii) Prepare an income statement for Maxon Ltd. for the period 01 January 2018-31 January 2018. Show the detailed elements in income statement. iii) Prepare a balance sheet statement for Maxon Ltd. as at 31 January 2018. Show the detailed elements in balance sheet 5 marks) 3 marks] 3 marks] for each business activity