7. Said Company established a petty cash fund on March 1, cashing a check for OMR 100. The company reimbursed the fund on June 1 and July 1 with the following results. April 1: Cash in fund OMR 4.5. Receipts: delivery expense OMR 29.75: postage expense OMR 42.00; and miscellaneous expense OMR 20.00. May 1: Cash in fund OMR 2.25. Receipts: delivery expense OMR 22.00; entertainment expense OMR 45.00; and miscellaneous expense OMR 30.75. On May 10, Said increased the fund from OMR 100 to OMR 200. Instruction: Prepare journal entries for Said Company for March 1, April 1 May 1 and May 10 8. Indicate how the following business transactions affect the basic accounting equation. (asset, liability, or owner Equity) A. Made cash investment to start business. (Already Done) B. Paid insurance expenses in advance. C. Purchased Car for cash. D. Perform service on credit E. Received cash in advance for service provided next month. F. Incurred rent expenses that will be paid next month. G. Withdrawal of cash by owner. H. Billed customers for services performed. I. Purchase supplies on account. Solution: A. Increase in Asset and increase in Owner Equity. 9. Presented below are transactions related to Star Company. 1. On June 4, Star Company sold OMR670,000 of merchandise to Ahmed Co., terms 2/10, n/30, FOB shipping point. The cost of the merchandise sold was OMR450.000. 2. On June 9, Ahmed Co. was granted an allowance of OMR30.000 for merchandise purchased on June 4. 3. On June 14, Star Company received the balance due from Ahmed Co. Instructions: a. Prepare the journal entries to record these transactions on Star Company records, using a perpetual inventory system. b. Assume that Star Company received the balance due from Ahmed Co. on July 2 of the following year instead of June 14. Prepare the journal entry to record the receipt of payment on July 2