1.Prepare journal entries for the following ten transactions that occurred in August:
	A/c name:	Dr	Cr
1.Cash sales of $300
2.Credit sales of $2 678
3.Received $423 cash, relating to July credit sales
4.Paid suppliers $196 for inventory purchased on credit in July.
5.Purchased $220 of inventory on credit from suppliers
6.The August COGS was $1 780
7.Depreciation expense for August was $31.
8.Accrued $15 of electricity for August
9.Electricity of $6, accrued for in July, was paid
10.An item of PPE was sold for $95 cash; the PPE had an original cost of $1 500 and an AD balance of $1 408.

 

2. The effect on the cash balance was:	$
Workings:

 

 

3. The profit or loss for August was:	Total income
	Less total expenses
	Profit	$
Workings for the total income figure:
Workings for the total expenses figure:

 

4. Explain why the answer for 2. is different from your answer for 3.