Questions: 1. Listed below are several transactions that occurred during the month of December 2019. Using the principles of transaction analysis, record each of the following transactions on the worksheet provided. Opening balances of accounts are already recorded on the worksheet for you. (10 marks) Transactions a) Investment of $3,000 by owners. b) Equipment costing $2,500 was purchased for cash. c) The company is found guilty in a court case. However they are yet to be sentenced. They do expect to have to pay a fine within the range of $10,000 - $20,000. The accountant discloses this as a contingent liability." The company bought more equipment costing $8,000. Half of it was paid for with cash the other half was put on account. e) Inventory costing $12,500 was purchased for re-sale. The company promised to pay the supplier for the inventory within a month. f) The company sold a vehicle for $1,200 cash. There was no gain on sale. g) The company paid a dividend to their shareholders totaling $3,000.- h) The company paid for the rest of the equipment. i) The company sold inventory on account for $15,000. The original cost was $8,200.- j) A payment was made on the loan to the bank. The principal amount paid (in cash) was $14,000 and there was also a $1000 interest payment. 2. Offer at least one piece of financial advice to this business based on your worksheet. What is the most important thing that they need to focus on based on your calculations? (2 marks) 3. Explain the difference between cash accounting and accrual accounting. Hint: Ensure you include in your answer a definition of both cash accounting and accrual accounting. Also include examples of transactions to show how a business could have high profit but low cash and vice versa. (3 Marks) Add or remove additional rows and/or columns as needed. Transaction Cash $e | Accounts Receivable Accounts payable $e Inventory Property $ Plant & Equipment Se 6,2154 72,553 Long term loan Contributed Retained Capitak earnings $ $ Income | Expenses | Se $ $ $ Opening balances 13,2504 2,4404 6,5884 23,500 30,000 34,370 04 1. 1. 1. 1. 1. 1. 1 1. 1 Totale 1