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 1. 1 Started business by issuing capital tek focus 5300000 Borrowed loan from Bank Muscat on a note payable S500 Recruited a staff agreed a salary of 10 Purchased washing machine for 5000 paid 45% cash and the remaining amount will be paid later 5. Performed laundry services to a customer who promised te Ny later.32000 6 Paid rent for the building for the whole year 6000 8 Mr. Snow white ordered for three steam Iron Bes for $300 which will be delivered in May Supplies were purchased on account for use in this month 56000 10 Cleaning of carpet services were performed to a customer who paid immediately 44000 10. Received cash 4000 from a client for the Laundry service to be provided for the month of February 11 MR. Snow white ordered goods from Mart for 5 500 but they were not delivered 12 25 Owner withdrew cash to pay his wife's medical bits 53000 13 A bill for $800 was received for utilities for this month 14. 28 Collections were made for the services performed on 6 15.31 Paid salaries to the employees at the end of the month $300 16. 31 Paid dividend to his shacholders 4000 17.31 The owner paid donations from his personal funds 2000 Oman charitable panication 8 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 Rent for the month amounted to S 500 C. The life span of the washing machine was 5 years and residual value 2000 D. Salary of $ 150 will be paid in February Uneared 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) B. E. 2. 3 3 4. 4 5. 6 6. 7. 8 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 1. 1 Started business by issuing capital stock for cash $300000 Borrowed loan from Bank Muscat on a note payable $80000 3. Recruited a staff agreed a salary of $300. Purchased washing machine for $50000 paid 45% cash and the remaining amount will be paid later. Performed laundry services to a customer who promised to pay later32000 7 Paid rent for the building for the whole year $ 6000 Mr. Snow white ordered for three steam Iron Box for $300 which will be delivered in May Supplies were purchased on account for usage in this month $6000 Cleaning of carpet services were performed to a customer who paid immediately $44000 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 $ 500 but they were not delivered. Owner withdrew cash to pay his wife's medical bills $3000 A bill for $800 was received for utilities for this month Collections were made for the services performed on 6" $ 16000 15. Paid salaries to the employees at the end of the month $ 300 16. Paid dividend to his shareholders $4000 17. The owner paid donations from his personal funds $200 to Oman charitable organization 8. 9 9. 10 10. 14 11. 16 12. 25 26 13. 14. 28 31 31 31 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 $ 150 will be paid in February E. Unearned 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)