CH1. Accounting in Action
Transactions Analysis and Financial statements  

You are given the following transactions related to the company you are an accountant in ( Softbyte SA).
1- Investment by shareholders.
Ray and Barbra Neal decided to start a smartphone company called Softbyte SA. On Sep.1.2019, they invest £15,000 cash in the business in exchange for £15,000 of ordinary shares. 
2- Purchase of Equipment for cash.
On Sep. 5.2019, Softbyte SA purchases computer equipment for £7,000 cash. 
3- Purchase of supplies on Credit. 
On Sep.20.2019 , Softbyte SA purchases headsets for its employees use for £1,600 from mobile solution. Mobile solution agrees to allow Softbyte to pay this bill in October.
4- Services performed for Cash.
On Sep. 25.2019, Softbyte SA receives £1,200 cash from customers for app development services it has performed at that date. 
5- Purchase of Advertising on Credit 
On Sep. 30.2019, Softbyte SA receives a bill from programming news for advertising on its website during the previous month but postpones payment until a later date.
6- Services performed for cash and credit 
On Sep. 30.2019, Softbyte SA performs £3,500 of app development Services for customers. The company receives cash of £1,500 from customer, and it bills the balance of £2,000 on account.
7- Payment of expenses 
On Sep.30.2019, Softbyte SA pays the following expenses in cash for September: office rent £600, salaries and wages of employees £900, and utilities £200. 
8- Payment of account payable 
On Sep.30.2019, Softbyte SA pays its £250 programming news bill in cash. ( see transaction 5)
9- Receipt of cash on account 
On Sep.30.2019, Softbyte SA receives £600 in cash from customers who had been billed for services ( transaction 6). 
10- Dividends 
On Sep.30.2019, The company pays a dividend of £1,300 in cash to Ray and Barbra Neal ( the shareholders of Softbyte SA).
11- Unearned service revenue
On Sep.30.2019, Softbyte receives £2,000 cash in advance for services to be performed next month. 
12- Prepaid expense 
On Sep.30.2019, Softbyte paid £2,000 cash in advance for insurance company. The insurance policy will cover Softbyte SA for the coming year. 
Required:
1- Analyse these transactions (prepare a tabular summary).
2- prepare financial statements.