PART C Total 60marks] Question 1 The account records of City Ltd. Show the following assets, liabilities and equities as of 1 August 2017 (carried forward from July 2017): Accounts Debit Credit Cash $30,000 Accounts receivable 6,000 Prepaid insurance 11,000 Office Supplies 8,000 Truck 30,000 Accumulated Depreciation - Truck 2,000 Equipment 40,000 Accumulated Depreciation - Equipment 3,200 Accounts payable 7,000 Salaries payable 6,200 Common stock 89,800 Retained earnings 16,800 Total 125,000 125.000 Business transactions completed by City Ltd. during the month of August 2017 are as follow. Aug 1 Prepaid six months' rent in advance, $9,000. Aug 2 The company completed services for a client and immediately received $4,000 in cash. Aug 3 Aug 5 Aug 7 Aug 11 The company paid $2,000 to settle part of accounts payable. The company purchased equipment value at $20,000. The purchase is paid with $5,000 cash and a long-term note payable for $15,000. Performed service for a customer on account, $8,000. Paid salary, $9,000 (of which $6,200 is for work carried out in July 2017, remaining for work carried in first two weeks of August 2017). Aug 17 Aug 19 Received $4,600 in cash from a customer for services to be performed later. Purchased $2,500 of additional office supplies on account. Aug 20 Aug 20 The company signed a service contract with a customer for $50,000. paid $500 cash for this month's utility bill. Aug 23 Aug 28 Received $1,800 cash from a customer for the work completed on July 3. Paid $2,200 cash in dividends to stockholders.