Reference no: EM132724364

Everest Sports owned by Dean Jones sells sports equipment to schools and sporting clubs in Victoria. The following balances were reported in the Balance Sheet as at 30 June 2020.

Account Name Balance ($)

Cash at bank 19 700
Accounts receivable 1 400
Accounts payable 600
Capital - Tim Lane 20 500

Transactions for July 2020 were as follows:

1. July 2 Received $1400 from accounts
2. 3 Paid $500 of accounts payable 
3. 4 Paid rent for July $700
4. 5 Sent invoice to customer $5600 
5. 7 Purchased office equipment for cash $2000 
6. 9 Recorded cash sales $800 
7. 10 Recorded credit sales $1500 
8. 14 Purchased office supplies for cash $330 
9. 23 Recorded cash sales $2000
10. 31 Cash drawing by Dean Jones $800

Required:

Problem A. Prepare worksheet entries for the business transactions for the month ended 31 July 2020.

Problem B. Summarise the procedures you would undertake if an accounting worksheet does not balance.