Reference no: EM132613888

Question - The following information was obtained from the records of Mercury Traders at the end of the first month of trading (January 2020):

Date Transaction

1 The owner deposited R200 000 into the bank account for day-to-day expenses

2 The following assets were purchased on credit from Makro:

Machinery: R40 000

Computer: R10 000

The outstanding amount is payable within two months.

3 Cheque no. 001 was issued to Mr. Lion for a receipt book and sundry stationary purchased. The amount was R372

4 Mr. Infinity was so impressed with the service rendered to him that he ordered services to the amount of R3 600 for another one of his businesses. The services were rendered on the same day and Mr. Infinity promised to pay the outstanding amount before the end of the month.

8 Cheque no. 002 to the amount of R448 was issued to Telkom for the installation of the telephone line.

16 The bank statement reflected the following:

Bank charges R128

Interest received R200

22 Services were rendered to Mr. Power for R3 600. He asked the cashier whether he could get a discount for settling his account immediately. The cashier made him aware that they do not grant discounts on cash payments. Mr. Power decided to rather wait until the end of the month to settle his account.

30 Mr. Infinity used a cheque to settle his account in full.

Mr. Power was declared insolvent and his full amount outstanding was written off as irrecoverable.

You are required to:

Record the above transactions in the accounting equation schedule of Mercury traders for the month of January 2020 indicating accounts affected , amount and impact ("+"/"-").