Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

1. Shareholders invested 20,000 cash in the business in exchange for ordinary shares. 2. Purchased equipment for 2,000, paying 1,000 in cash and the balance

1. Shareholders invested 20,000 cash in the business in exchange for ordinary shares. 2. Purchased equipment for 2,000, paying 1,000 in cash and the balance on account. 3. Paid 600 cash for August office rent. 4. Purchased 500 of supplies on account. 5. Recognized revenue of 7,500, of which 4,000 is collected in cash with the balance to be collected later. 6. Paid for the supplies purchased in transaction (4). 7. Declared and paid 700 dividend. 8. Incurred utility expenses for the month on account 270. 9. Paid salaries of 2,800 for August. 10. Received 2,000 from Standard Bankmoney borrowed on a note payable. Instructions a. Prepare a tabular analysis of the August transactions. The column headings should be as follows: Cash + Accounts Receivable + Supplies + Equipment = Notes Payable + Accounts Payable + Share CapitalOrdinary + Revenues Expenses Dividends. b. Prepare an income statement and a retained earnings statement for August, and a statement of financial position at August 31, 2025, for Ai Fang Co. help me

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Advanced Accounting

Authors: Debra Jeter, Paul Chaney

6th edition

978-1118742945, 111874294X, 978-1119045946, 1119045940, 978-1119119364

More Books

Students also viewed these Accounting questions

Question

What are the advantages and disadvantages of ROWE?

Answered: 1 week ago