The Puffing Billy is a small business entity, owned and managed by Neil Strong. He contributed C2 000 capital on formation of the business a few years ago and no further contributions have been made.

The entity offers rides over weekends in an old steam train that it hires from a railway museum. School groups can book and take rides on credit, with payment due within three weeks. Members of the public are required to pay cash at the time of taking the rides.

The following is a list of the assets and liabilities of The Puffing Billy at 30 June 20X5:

	C
Bank	8 000
Accounts receivable	4 200
Supplies on hand	1 200
Insurance paid in advance	1 800
Accounts payable	1 400

The transactions for July 20X5 were as follows:

1. Paid C600 of the accounts payable.

2. Paid C3 600 to the railway museum for hiring of the steam train.

3. Received C2 000 owing from school groups.

4. Purchased supplies on credit costing C500.

5. Billed C11 500 to school groups for train rides.

6. Paid employees' wages amounting to C2 400.

7. Received C2 000 in cash from members of the public for train rides.

8. Paid C180 for advertising.

9. Distributed C900 cash to Neil Strong.

10. Counted supplies on hand at the end of March costing C980.

11. The C1 800 insurance paid in advance at 30 June 20X5 relates to a one year policy effective from 30 June 20X5.

Required:

a. Enter the balances on 30 June 20X5 on an accounting equation worksheet and determine the equity at that date.

b. Enter transactions (1) to (11) on the accounting equation worksheet, and total the columns to prove that total assets equal liabilities plus owner's equity at 31 July 20X5.

c. Prepare a statement of profit or loss of The Puffing Billy for the month ended 31 July 20X5.

d. Prepare a statement of changes in equity of The Puffing Billy for the month ending 31 July 20X5.

e. Prepare a statement of financial position of The Puffing Billy at 31 July 20X5.