Question
Rahim Ali owns and operates the Car Repair Shop. A list of the transactions that took place in August 2002 follows: August 1 Rahim began
Rahim Ali owns and operates the Car Repair Shop. A list of the transactions that took place in August 2002 follows:
August 1 | Rahim began the business by depositing Tk. 50,000 of his personal funds in the business bank account. |
August 2 | Rahim rented space for the shop and paid August rent of Tk. 8,000. |
August 3 | The shop purchased supplies for cash, Tk. 30,000. |
August 4 | The shop paid Daily News, a local newspaper, Tk. 3,000 for an advertisement. |
August 5 | Rahim repaired a car for a customer. The customer paid cash of Tk. 13,000 for services rendered. |
August 11 | Car Repair Shop repaired a car for a customer, Mr. Nazrul Islam, on credit, Tk. 5,000. |
August 13 | The shop purchased supplies for Tk. 9,000 by paying cash of Tk. 2,000 and charging the rest on account. |
August 14 | The shop repaired a car for Zonab Ali, for Tk. 19,000. Rahim collected Tk. 10,000 in cash and put the rest on account. |
August 22 | Rahim took home supplies from the shop that had cost Tk. 1,000 when purchased on August 3. |
August 24 | The shop collected cash of Tk. 4,000 from Mr. Nazrul Islam. |
August 26 | The shop paid of Tk. 2000 for clearing expense. |
August 29 | Rahim repaired a car for Abul Kashem for Tk. 12,000 on account. |
August 31 | Rahim transferred Tk. 5,000 from the business bank account to his Personal bank account. |
Instructions:
- Prepare a tabular analysis of the transactions.
- Prepare an income statement for the month of August, 2002.
- Prepare a statement of owners equity for the month of August, 2002.
- Prepare a balance sheet on August 31, 2002.
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