Tony started Dream Consulting on 1 July 2019. During the first month of operations, the business completed the following transactions.

1 July Tony invested $50,000 cash in the business.

1 July Paid office rent of $48,000 for two years.

1 July Paid $1,200 for fire insurance for one year.

3 July Purchased office supplies for $500 on account.

5 July Paid a downpayment of 40% of $10,000 for office furniture from DH Furnishings. The remaining 60% to be paid upon delivery of the office furniture.

10 July Received $6,000 from a client as advance payment for services to be performed next month.

15 July Received a $2,000 bill for advertising expense that will be paid next month.

27 July Paid utilities bill of $200.

29 July Performed service for a client and received cash of $12,000.

31 July Received delivery of the office furniture from DH Furnishings.

31 July Paid salary of $5,000.

31 July Signed an agreement to buy a new machine costing $20,000 to be delivered three months later. No down-payment was given.

(a) Analyse the above and prepare the necessary entries for the month of July 2019. Narrations are not required. (15 marks)

(b) Prepare the trial balance as at 31 July 2019. (9 marks)

(c) Identify the following from the trail balance:

(i) The net profit for the month ending 31 July 2019.

(ii) The total assets as at 31 July 2019.

(iii) The total liabilities as at 31 July 2019. You do not need to prepare the financial statements. However, you need to show the workings. (10 marks)