Reference no: EM132573006

Question - King Sports owned by Tim Lane, sells sports equipment to schools and sporting clubs in Victoria.

The following balances were reported in the Balance Sheet as at 30 June 2019.

Account Name Balance ($)

Cash at bank 39 400

Accounts receivable 2 800

Accounts payable 1 200

Capital - Tim Lane 41 000

Transactions for July 2019 were as follows:

July 2 Received $2800 from accounts receivable

July 3 Paid $1000 of accounts payable

July 4 Paid rent for July $700

July 5 Sent invoice to customer $5600

July 7 Purchased office equipment for cash $2000

July 9 Recorded cash sales $800

July 10 Recorded credit sales $1500

July 14 Purchased office supplies for cash $330

July 23 Recorded cash sales $2000

July 31 Cash drawing by Tim Lane $800

Required -

a. Prepare worksheet entries for the business transactions for the month ended 31 July 2019.

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