1. 1st of August, the owner of the company invested 40,000 in the company.

2. 2nd of August, the company converted 25,000 Note payable to ordinary shares.

3. 4th of August, the company bought land for 35,000 on credit.

4. 5th of August, the board of directors declared dividends 5,500 for the ordinary shareholders.

5. 6th of August, the owner of the company withdrew 11,000 for his personal use.

6. 8th of August, the company billed the customers 28,000 for the services provided.

7. 12th of August, the company paid electricity 3,400 and rent 5,000.

8. 14th of August, the company issued ordinary shares for 44,000

9. 16th of August, the company paid the land bought on the 4th of August.

10. 18th of August, the company paid 6,000 for one year insurance starting from the 1st of August.

11. 20th of August, the company received 55,000 for services that should be provided next month.

12. 22nd of August, the owner of the company returned the amount withdrew on the 6th of August.

13. 24th of August, the company received maintenance services for their equipment for 4,700 but didnt pay the provider.

14. 25th of August, the company sold a used delivery truck for 3,000.

15. 27th of August, the company sold an old office furniture and billed the purchaser for 2,200.

16. 31st of August, paid dividends for the ordinary shareholders 8,200.

Q1. Show the impact of the above transaction on the accounting equation.

Q2. Prepare the journal entries in the general ledger of the company.

Q3. Post the journal entries to each account ledger.

Q4. Prepare the Trial Balance report for the above.

Q5. Consider the following transaction happened next month and prepare the adjusting entries.

1. 1st of September, the company received the amount billed on the 8th of August.

2. 5th of September, the company used one month of the insurance services paid for on the 18th of August.

3. 10th of September, the company provided services for 33,000 from the services paid on the 20th of the August.

4. 14th of September, the company paid the maintenance services received on the 24th of August.

Q6. Prepare the adjusting Trial Balance according to the above adjustment.

Q7. Prepare the Income Statement of the company.

Q8. Prepare the statement of Retained Earnings

Q9. Prepare the statement of Financial Position

FIRS