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The transactions relating to the formation of Momento Shop and its first month of operation are shown below. Prepare an answer sheet with the following

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The transactions relating to the formation of Momento Shop and its first month of operation are shown below. Prepare an answer sheet with the following columns, Ignore GST: Transaction Cash Supplies inventory Accounts receivable Inventory Equipment Loan payable Accounts payable Equity - Contributed capital Income Expense a) The shop was organised and the owner invested cash of $8,000 b) The shop borrowed $5,000 from the bank. Purchased a 6-months of shop supplies inventory (boxes, scissors, tape, glue gun, ribbon etc.) cash for $1,000. c) Display cases and other store equipment costing $1, 750 were purchased for cash. The original list price of the equipment was $1,900 but a discount was received because the seller was having a sale d) A store location was rented and $1,400 was paid for the first month's rent e) Inventory of $15,000 was purchased, $9,000 cash was paid to the suppliers and the balance will be paid within 30 days f) During the first week of operations, merchandise that had cost $4,000 was sold for $6,500 cash g) Additional inventory costing $4,200 was purchased, cash of $1,200 was paid and the balance is due in 30 days h) In the last three weeks of the first month, sales totalled $13,500, of which $9,600 was sold on account. The cost of the goods sold totalled $9,000 i) Collected a total of $3, 160 from the sales on account recorded in transaction (h) j) Paid a total of $4,720 of the amount owed to suppliers from transaction (@) k) At the end of the month, a stocktake of the supplies showed an amount of supplies worth $750. Requirements: 1. Record each transaction in the appropriate columns of your worksheet for the first month operation of Momento Shop. 2. From the worksheet prepare a balance sheet at the end of the month and an income statement for the first month

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