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Mr T Moleleng runs a small stationery business, Everydayneeds Traders. The entity is not registered as a VAT vendor and uses a perpetual $($continuous$)$ inventory control system $($When using the perpetual inventory system all inventory purchased is recorded in the inventory account and when it is sold the cost price of the inventory is recorded in the cost of sales account and the inventory account. Please refer to learning unit $6$ and $7$ if you want to know more about the topic$).$ A mark$-$up percentage of $20\%$ on cost is applicable. The following transactions by Everydayneeds Traders took place during January $2022$:

$1$ Purchased stationery for resale from Large Wholesalers, on credit, R$5000.$

$2$ Paid the carriage on purchases for the stationery purchased on $4$ January $2013,$ with cash, R$620$

$3$ Purchased stationery $($receipt books$)$ to be used by the entity and paid with the company debit card, R$1200.$

$4$ Cash sales of merchandise, R$2040.$

$5$ Record the cost of sales for transaction number $4.$ The cost of sales for the transaction is R$1700.$

$6$ Paid Everydayneeds Traders telephone account of R$1250$ with an electronic funds transfer.

$7$ The owner paid his personal insurance with an electronic funds transfer from the business bank account, R$2500$

REQUIRED:

Prepare a table in the format below. Analyse the above transactions by indicating what account must be debited and what account must be credited in the general ledger. Also indicate the effect of each transaction on the accounting equation by using a $+$ sign to indicate an increase and a $-$ sign to indicate a decrease. Where applicable, assume that the bank balance is positive.