You should assume that todays date is 1 April 2021

You are a senior accountant of ABC firm, and you have just had a meeting with Alex who is one of your clients.

1 March 2021, Alex commenced self-employment as a sole trader. During the first month of operations, March 2021, the following transactions took place.

1 March	Started with cash and ordinary shares of 10,000
1 March	Raised loan from bank of 10,000.
1 March	Paid monthly rental of shop for 2,000 in advance.
1 March	Purchased 5,000 of goods for cash from Amy.
5 March	Sold 7,000 of goods to Bill for cash.
11 March	Purchased 10,000 of goods for cash from Candy.
15 March	Sold 14,000 of goods to Dee on credit.
20 March	Received 13,720 cash on account from Dee.
22 March	Purchased 15,000 of goods for cash from Eric.
25 March	Received sales return of 400
31 March	Sold 20,000 of goods to Frank on credit with 5% sales discount
31 March	Paid monthly freight expense of 1,500 by cheque.
31 March	Paid a telephone bill of 110 by cheque.
31 March	Paid wages of part-time employee of 1,500 by cheque
31 March	Paid monthly interest of 100.
31 March	Alex paid himself 2,000 in 'wages'.

Alex is going to expand his business in the future. He realizes that he is going to need more money in business.

Required

Write 300 words

Draft a report to answer Alex for the following questions:

1. Post to the ledger and show the balance in each account after all transitions have been posted.
2. Prepare the Income Statement for the month ended 31 March 2021, and the Balance Sheet at 31 March 2021
3. How to solve the cash problems in his business?