1/7- 100% ACCT1000 Written Assignment Name Student no.: Section No. Date: Class No. Chapter 1 - Accounting in Action P1.2 Analyze transactions and prepare Income Statement, Retained Earnings Statement and Statement of Financial Position Ai Fang Co. opened on July 1, 2020. On July 31, the statement of financial position showed Cash 5,000, Accounts Receivable 1,500, Supplies 500, Equipment 6,000, Accounts Payable 4,200, Share Capital-Ordinary 4,000, and Retained Earning of 4,800 (amounts in thousands). During August, the following transactions occurred. Instructions (A) Write the effect, account title and amount of each of the following transactions. (B) Prepare a tabular analysis of the August transactions beginning with July 31 balances. (C) Prepare an Income Statement for August. (D) Prepare a Retained Earnings Statement for August. (E) Prepare a Statement of Financial Position at August 31, 2020. (List Assets in reverse order of liquidity.) (A) 1. Collected 1,200 of accounts receivable. Item Effect Account Title Dr./Cr. Amount 2. Paid 2,800 cash on accounts payable. Item Effect E Account Title Dr./Cr. Amount 3. Recognized revenue of 7,500, of which 4,000 is collected in cash and the balance is due in September. Item Effect Account Title Dr./Cr. Amount 4. Purchased additional equipment for 2,000, paying 400 in cash and the balance on account. Item Effect Account Title Dr./Cr. Amount 5. Paid salaries 2,800, rent for August 900, and advertising expenses 400. Item Effect Account Title Dr./Cr. Amount 6. Declared and paid 700 dividend. Item Effect Account Title Dr./Cr. Amount 7. Received 2,000 from Standard Bank-money borrowed on a note payable. Item Effect Account Title 8.Incurred utility expenses for month on account 270. Item Effect Dr./Cr. Amount Account Title Dr./Cr. Amount wnloads/Ch1%20Que%20%20ws%20(1).pdf July 31 Balances (1) (2) (3) (4) (5) (6) (7) (8) 4/7 100% PROBLEM 1.2 (Continued) Ai Fang Co. opened on July 1, 2020. On July 31, the statement of financial position showed Cash 5,000, Accounts Receivable 1,500, Supplies 500, Equipment 6,000, Accounts Payable 4,200, Share Capital Ordinary 4,000, and Retained Earning of 4,800 (amounts in thousands). During August, the following transactions occurred. (B) Prepare a tabular analysis of the August transactions beginning with July 31 balances. (If a transaction results in a decrease in Assets Liabilities or Equity, place a negative sign (or parentheses) in front of the amount entered for the particular Asset, Liability or Equity item that was reduced. Balances ASSETS = Liabilities + Equity + Cash Accounts Supplies Equipment Receivable = Notes Payable + Accounts Payable Share Retained Revenues Expenses Dividends Capital Earnings 4 PROBLEM 1.2 (Continued) (C) Prepare an Income Statement for August. PROBLEM 1.2 (Continued) (D) Prepare a Retained Earnings Statement for August. 100% + 6 PROBLEM 1.2 (Continued) (E) Prepare a Statement of Financial Position at August 31, 2020. (List Assets in reverse order of liquidity.)