Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

$ 7. 5. Mr. Snow white opened a Laundry services in January 2019. He plans to prepare the monthly financial statement dated 31 January 2020.

image text in transcribed
$ 7. 5. Mr. Snow white opened a Laundry services in January 2019. He plans to prepare the monthly financial statement dated 31 January 2020. During this month period he completed the following transaction S.NO January Transactions Started business by issuing capital stock for cash 10000 Borrowed loan from Bank Muscat on a note payable S50000 Recruited a staff agreed a salary of $300. Purchased washing machine for 5000 paid 45% cash and the remaining amount will be paid later Performed laundry services to a customer who promised to pay later 12000 7 Paid rent for the building for the whole year $ 6000 8 Mt. Snow white ordered for three steam Iron Box for $300 which will be delivered in May 9 Supplies were purchased on account for usage in this month SO 10 Clearing of carpet services were performed to a customer who paid inmedimely $48000 14 Received cash 4000 from a client for the Laundry service to be provided for the month of February MR. Snow white ordered goods from K Mart for so but they were not delivered 12 25 Owner withdrew cash to pay his wife's medical bills $3000 13 26 A bill for $800 was received for utilities for this month Collections were made for the services performed on 6$ 16000 15 31 Paid salaries to the employees at the end of the months to 16 31 Paid dividend to his shareholders S4000 17. 31 The owner paid donations from his personal funds S200 Oman charitable organization . 1. 16 From the above information you are required to: 5. Analyze the transaction by using accounting equation. (0.5 Mark*13 = 8 marks) 6. Prepare the Journal entries for the month of January. (0.25 for each account= 7 marks) 7. Post the entries and calculate the balances. (0.5 Mark*13 = 6.5 marks) 8. Use the balances to prepare the unadjusted trial Balance (7 marks) 9. Consider the following adjustments to prepare the Adjusted Trial Balance after completing the unadjusted trial balance. (10 Marks) Adjusting entries for A Supplies at the end of the month amounted to $ 4000 B. Rent for the month amounted to $ 500 C. The life span of the washing machine was 5 years and residual value 2000 D. Salary of S 150 will be paid in February Uneamed revenue was 1000 at the end of the month 10. Use the adjusted Trial Balance to prepare Income statement, statement of owners' equity and statement of financial Position. (6.5 marks) E

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

The ASQ Auditing Handbook

Authors: J. P. Russell,

4th Edition

0873898478, 978-0873898478

More Books

Students also viewed these Accounting questions

Question

Define facework and identify three primary facework strategies

Answered: 1 week ago