Question!5 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 Business Activit 11 Jan- Maxon deposited $100,000 of his personal funds in a current account 2018at a bank opened in the name of the business. He also provided 4-Jan-18 4-Jan-18 equipment of $50,000, which was paid from his personal account. 2 | | Pay $14,000 to landlord for premises. 50% of the amount is a refundable deposit, the remainder is the first month's rent. | Purchase office equipment for $5,000, of which 40% was paid 3 | instantly. The equipment has an estimated lite of four years with no salvage value 45-Jan-18Borrow $25,000 from a friend for working capital. This interest-free 511-Jan-18Purchase 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, $250 715-Jan-18 |Equipment was purchased at a cost of $16 000, of which $10,000 was 818-Jan-18 Spend $12,000 on TV and radio advertising during the month loan must be repaid in 4 vears. total cost of $15,000. Payment is due in 30-da Assume that these are costs that were incurred for this month so far aid in cash. A loan payable was given for the remainder of $6 000 921-Jan-18Hire a consultant to conduct a survey on the needs of the local 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 Februar 1031-Jan-18Delivered 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 entries are not required] i) Following the format in Exhibit 6 (page 51) of your text book, identify the above accounting entries for each business activity 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]