Question $1$

Ai Fang Co$.$ opened as a new computer services business on August $1,2025.$ During August, the following transactions occurred.

Shareholders invested $$20,000$ cash in the business in exchange for ordinary shares.

Purchased equipment for $$2,000,$ paying $1,000$ in cash and the balance on account.

Paid $600$ cash for August office rent.

Purchased $500$ of supplies on account.

Recognized revenue of $7,500,$ of which $$4,000$ is collected in cash with the balance to be collected later.

Paid for the supplies purchased in transaction $(4).$

Declared and paid $700$ dividend.

Incurred utility expenses for the month on account $Y270.$

Paid salaries of $Y_2,800$ for August.

Received $$2,000$ from Standard Bank$--$money borrowed on a note payable.

Instructions

a$.$ Prepare a tabular analysis of the August transactions. The column headings should be as follows: Cash $+$ Accounts Receivable $+$ Supplies $+$ Equipment $=$ Notes Payable $+$ Accounts Payable $+$ Share Capital$-$Ordinary $+$ Revenues $-$ Expenses $-$ Dividends.

b$.$ Prepare an income statement and a retained earnings statement for August, and a statement of financial position at August $31,2025,$ for Ai Fang Co$.$

Question $2.$

Two items are omitted from each of the following summaries of statement financial position and income statement data for two proprietorships for the year $2025,$ Greene's Goods and Solar Enterprises.

$\backslash$table$[[,\backslash$table$[[$Greene$\text{'}$s$],[$Goods$]],\backslash$table$[[$Solar$],[$Enterprises$]]],[$Beginning of year:,,$],[$Total assets,$110,000,(c)$