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1 Problem 1-7B Analyzing transactions and preparing financial statements Nihal Naser launched a new business, Naser's Maintenance Co., that began operations on June 1. The

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1 Problem 1-7B Analyzing transactions and preparing financial statements Nihal Naser launched a new business, Naser's Maintenance Co., that began operations on June 1. The following transactions were completed by the company during that first month. June Nihal Naser invested 5130,000 cash in the company 2 The company rented a furnished office and paid $6,000 cash for June's sont 4 The company purchased $2,400 of equipment on credit. 6 The company paid $1,150 cash for this month's advertising of the opening of the business. 8 The company completed maintenance services for a customer and immediately collected $850 cash 14 The company completed $7.500 of maintenance services for Sun City Mall credit 16 The company paid $800 cash for an assistant's salary for the first half of the month 20 The company received $7,500 cash payment for services completed for Sun City Mall on June 14. page 44 21 The company completed $7.900 of maintenance services for Woooh Beauty Shop on credit 24 The company completed $675 of maintenance services for Built Coop ce credit 25 The company received $7.900 cash payment from Wojoch Beauty Shop for the work completed on June 21. 26 The company made payment of S2.400 cash for equipment purchased on June 4 28 The company paid $800 cash for an assistant's salary for the second half of this month 29 Nihal Naser withdrew $4,000 cash from The company for personal use. 30 The company paid $150 cash for this month's telephone ball 30 The company puid 8890 cash for this month's utilities Required 1. Arrange the following asset, liability, and equity titles in a table like Exhibit 1.9: Cash; Accounts Receivable; Equipment; Accounts Payable; N. Naser, Capital; N. Naser, Withdrawals; Revenues; and Expenses. 2. Show the effects of the transactions on the accounts of the accounting equation by recording increases and decreases in the appropriate columns. Do not determine new account balances after each transaction. Determine the final total for each account and verify that the equation is in balance. 3. Prepare a June income statement, a June statement of owner's equity, a June 30 balance sheet, and a June statement of cash flows. Check (2) Ending balances: Cash, $130.060: Expenses, $9,790 (3) Net income, $7,135; Total assets, $133,135

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