On Jan 1, 2020, Agha Noor established a new advertising agency. The following transactions were completed during the month of January.

Jan1 Agha Noor invested $10,00,000 in the business. Out of $10,00,000, $800,000 is cash and $200,000 is a cost of office equipment.

Jan 4 Purchased office furniture costing $40,000 on account. The market price is now $38,000.

Jan 9 Provided $100,000 of services to its customers and amount is due on Jan 20,2020.

Jan10 Purchased $8000 of office supplies on credit.

Jan15 Received $50,000 cash from customers for advertising

Jan 20 Withdrew $40,000 cash from the business.

Jan 20 Received cash from customers. (refer to Jan 9 transaction)

Jan 27 Paid employees salaries, $30,000

Jan 29 Paid rent $10,000, insurance expense 500, Utilities $4000 for the month

Jan 30 Owner invested additional $10,000 cash in the business

Instructions (10)

Use the accounting equation and prepare a tabular analysis of each transaction for the month of January. Use the following account titles, cash, office equipment, office furniture, owners capital, owner drawings, Service revenue, account receivable, office supplies, accounts payable.