Transactions are as follows:

1. The friends used 4,000 of their own savings to set up the company. The money was banked on 1 January.
2. Sales income (Sales type a) of 1,020 was banked on 26 January.
3. The friends received an additional income of 400 from the sale of drinks and snacks (Sales type b). The cash was banked on 27 January.
4. The friends organised a competition for which the sales revenue (Sales type c) was 600. The money was banked on 29 January.
5. Expenditure was as follows (all paid for by cheque from the current account):
   1. 1 January 10 new bikes total cost 2,000 (expected to last 3 years)
6. 2. 1 January Purchase of a minivan - 860 on (expected to last 2 years)
7. 3. 16 January Spares and parts 320 (all used during year)
8. 4. 1 January Helmets 500 (expected life 5 years or until any serious crash)
9. 5. 26 January Postage 50
10. 6. 15 January Printing costs 64
11. 7. 3 January Petrol for mini-van 12
12. 8. 31 January Gross Wages 400

6. You advise the friends to adopt a straight-line method of depreciation. None of the assets is expected to have a residual value at the end of their useful lives.

Questions: (Show full working)

1. Enter each transaction ( debit and credit part )
2. What was the profit/Loss made?
3. What was the closing balance sheet?