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PART 1 Angela Dully, opens her own law office on July 1 2018 During the first month of operations, the following transactions occurred 1. Invested

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PART 1 Angela Dully, opens her own law office on July 1 2018 During the first month of operations, the following transactions occurred 1. Invested BHD10,000 in cash in the law practice 2. Paid BHD800 for July rent expense on office space 3. Purchased office equipment on account BHD3,000 4. Provided legal services to clients for cash BHD1,500. 5. Borrowed BHD700 cash from a bank on a note payable. 6. Performed legal services for a client on account BHD2,000. 7. Paid monthly expenses salaries BHDS00, utilities BHD300, and telephone BHD100 Instructions 1. Use a tabular summary to record the previous transactions Marking Scheme: 1 mark cach x 7 entries= 7 Marks Lists Oral Fun Rescue 2. Produce the income statement for the month of July (3 marks) 3. Produce the balance sheet at July 31 (2 marks) PART 2 ARAMCO company purchases factory machine at a cash price of $100,000. Related expenditures are sales taxes $3000, Insurance after the installation is $6000 and Installation and testing $1,500. The machine has an estimated useful life of 6 years and salvage value is $2,000. 1. Compute the cost component of the machine. Marking Scheme: S mark for every cost component x 4 - 2 Marks 2. Compute the total costs of the machine. MarkinScheme: Correct formula & answer = 2 marks 3. Using straight line method, how much will be the annual depreciation cost? Marking Scheme: Correct formula & answer = 2 marks 4. Compute the book value of the machine at the end of the 4th year? Marking Scheme: Correct Presentation 2 mark; Correct Amount-1 mark; Total 3 Marks PART 3 Prepare a Cash flow statement by using the below data of the Cash account 31.12.2017 Spring 11.30 50 Payam topplis. yar 300 Proff Feel freedom al 200 100 250 Duded Rupayment of em one 2017 1. Compute the operating activities Marking Scheme Computation: 2 Marks, Correct Anr: Mark Total 3 Marks 2. Compute the investment Activities Marking Scheme Comp wtation: 2 Marks, Correct Answer: Mark Toral:3 Marks 3. Compute the Financial Activities Marking Scheme Computation: 2 Marks, Correct Annwer: Mark Total 3 Marks

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