Transactions for July 2019 were as follows:

1. July2 Received $2800 from accounts receivable
2. July3 Paid $1000 of accounts payable July
3. 4 Paid rent for July $700
4. July 5 Sent invoice to customer $5600 7 Purchased office equipment for cash $2000
5. July9 Recorded cash sales $800 10 Recorded credit sales $1500
6. July14 Purchased office supplies for cash $330 23 Recorded cash sales $2000
7. July31 Cash drawing by Tim Lane $800

Required:

a. Prepare worksheet entries for the business transactions for the month ended 31 July 2019.(7 marks)

b. Describe how an accounting worksheet assists in the preparation of the statement of profit or loss and the balance sheet. (3 marks)