**********************************Recording transactions by using accounting equation******************************

Q1. Hussain decides to open a new services business called ABACO .

1-On January 1, 2018 he invests $ 10,000 cash in the business.

2-ABACO purchases $ 500 supplies from MACRO company on account.

3-ABACO receives $ 1,200 cash from customers for programming services it has provided.

4-ABACO paid $ 200 cash from the local newspaper for advertising expense.

5-ABACO purchases computer equipment for $ 7,000 cash.

6-Ali withdrew $ 600 in cash from the business for his personal use.

Question:

1. Record the Previous transactions by using accounting equation.
2. Prepare income statement and Balance sheet.

Q2.Transactions made by Virmari & Co., a public accounting firm, for the month of August, 2018 are shown below.

1. The owner invested $25,000 cash in the business.

2. The company purchased $7,000 of office equipment on account.

3. The company received $8,000 cash in exchange for services performed.

4. The company paid $850 cash for this months rent expense.

5. The owner withdrew $1,000 cash for personal use.

Required:

1. Record the transactions by using accounting equation.
2. Prepare income statement and balance sheet statement.