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Created by Rangga Handika (Financial Accounting course) TOPIC 1: Introduction to Accounting Question 1 You own and run a company operating delivery service. The company is Kasumigaseki Co Ltd. and starts to operate on March 1, 2017. The following events occurred during the month of March: Mar 1 You invested JPY 10,000,000 cash in exchange for common stock. Mar 2 The company purchased a truck for deliveries for JPY 5,000,000. The company paid cash JPY 3,000,000 and signed a note payable for the remaining balance. Mar 3 The company paid JPY 400,000 for office rent for the month. Mar 4 The company hired two staffs with monthly salary JPY 300,000, paid every 25 of the month. Mar The company delivered service to the customer JPY 600,000 on account. Mar 5 10 The company declared and paid JPY 100,000 cash dividends. Mar 12 March 19 The company purchased supplies JPY 12,000 on account. The company received a cash payment of JPY 400,000 for services performed on March 20 March 5 March 21 The company purchased gasoline for JPY 80,000 on account. March 24 The company received a JPY 300,000 cash for services performed. March 25 The company paid JPY 1,000,000 on the note payable March 27 The company paid the salaries of the staffs hired on March 4. March 28 The company paid JPY 75,000 for utilities expenses. The company paid cash 80,000 JPY for gasoline purchased on March 20. Required: (a) Show the effects of the previous transactions on the accounting equation using the following format: Assets Liabilities Stockholders' Equity Cash + Accounts + Supplies + Truck = Accounts Note + Common Retained Earnings Receivable Payable Payable Stock Rev Exp Div (b) Prepare an income statement for the month of March. (c) Prepare a balance sheet at March 31, 2017