Reference no: EM133012374

Question - Adam set up a business and in the first nine days of trading thefollowing transactions occurred:

(1) January Adam introduces $10,000 capital by cash.

(2) January Adam buys supplies worth $4,000 and pays by cash.

(3) January Adam buys a delivery van for $2,000 and pays by cash.

(4) January Adam buys $1,000 of purchases on credit.

(5) January Adam sells goods for $1,500 and receives a cash of that amount.

(6) January Adam sells all his remaining goods for $5,000 on credit.

(7) January Adam pays to his supplier payable of $800 by cash.

(8) January Adam pays rent of $200 by cash.

(9) January Adam draws $100 for living expenses from the business bank account.

There is no closing stock. Both Supplies and Purchases will be accounted for as inventory for sale.

Required -

(a) Write double entries of the given transactions.

(b) Complete the relevant ledger accounts.

(c) Extract a trial balance.

(d) Prepare the income statement for the first nine days.

(e) Prepare the Statement of financial position as at 9 January.