Softbyte SA Income Statement For the Month Ended September 30, 2020 Revenues Service revenue 64.700 Expenses Salaries and wages expense E900 Rent expense 600 Advertising expense 250 Utilities expense 200 Total expenses 1.950 Net income C2,750 Softbyte SA Retained Earnings Statement For the Month Ended September 30, 2020 Retained earnings, September 1 E 0 Add: Net income 2,750 2.750 Less: Dividends 1.300 Retained earnings, September 30 C1,450 Softbyte SA Statement of Financial Position September 30, 2020 Assets Equipment E 7.000 2 Supplies 1.600 Accounts receivable 1.400 Cash 8.050 Total assets E18.050 Equity and Liabilities Equity Share capital-ordinary E 15.000 Retained earnings 1,450 - E16.450 Liabilities Accounts payable 1.600 Total equity and liabilities (18.050 Softbyte SA Statement of Cash Flows For the Month Ended September 30, 2020 Cash flows from operating activities Cash receipts from revenues E 3,300 Cash payments for expenses (1,950) Net cash provided by operating activities 1,350 Cash flows from investing activities Purchase of equipment (7,000) Cash flows from financing activities Sale of ordinary shares E15,000 Payment of cash dividends (1,300) 13,700 Net increase in cash 8,050 Cash at the beginning of the period Cash at the end of the period E 8,050Assets = Liabilities + Equity Trans Accounts Accounts Share Retained Earnings action Cash + Receivable + Supplies + Equipment = Payable + Capital + Rev. Exp. Div. (1) +15,000 + 15,000 IssuedShares (2) 4,000 +7,000 (3) +l,600 +l,600 (4) +1,200 + l .200 Service Revenue (5) +250 -250 Adver. Expense (6) +l,500 +2,000 +3,500 Service Revenue (7) 1,700 4500 Rent Expense +900 SalJWagesExp. 200 Utilities Expense (8) 250 250 (9) +600 600 (10) 4,300 l.300 Dividends 8,050 + 1,400 + 1,600 + 7,000 = 1, 0 + 15,000 + 4,700 1,950 1,300 x V 18,050 18,050 Yazici Advertising A.$. Trial Balance October 31, 2020 Debit Cash 15,200 Supplies 2,500 Prepaid Insurance 600 Equipment 5,000 Notes Payable Accounts Payable Uneamed Service Revenue Share CapitalOrdinary Dividends Service Revenue Salaries and Wages Expense Rent Expense Credit GENERAL LEDGER Cash No. 101 Accounts Payable No. 201 Date Explanation Ref Debit Credit Balance Date Explanation Ref. Debit Credit Balance 2020 2020 Oct. JI 10,000 10,000 Oct. 5 2,500 2,500 J1 1,200 11,200 JI 900 10,300 Unearned Service Revenue No. 209 4 JI 600 9,700 Date Explanation Ref. Debit Credit Balance 20 J1 500 9,200 2020 26 4,000 5,200 Oct. 2 J1 1,200 1,200 31 10,000 15,200 Share Capital-Ordinary No. 311 Supplies No. 126 Date Explanation Ref. Debit Credit Balance Date Explanation Ref. Debit Credit Balance 2020 2020 Oct. 1 JI 10,000 10,000 Oct. 5 JI 2,500 2,500 Dividends No. 332 Prepaid Insurance No. 130 Date Explanation Ref. Debit Credit Balance Date Explanation Ref. Debit Credit Balance 2020 2020 Oct. 20 500 500 Oct. 4 JI 600 600 Service Revenue No. 400 Equipment No. 157 Date Explanation Ref. Debit Credit Balance Date Explanation Ref. Debit Credit Balance 2020 2020 Oct. 31 J1 10,000 10,000 Oct. 1 JI 5,000 5,000 No. 726 Notes Payable No. 200 Salaries and Wages Expense Date Explanation Ref. Debit Credit Balance Date Explanation Ref. Debit Credit Balance 2020 2020 Oct. 26 J1 4,000 4,000 Oct. 1 J1 5,000 5,000 Rent Expense No. 729 Date Explanation Ref. Debit Credit Balance 2020 Oct. 3 900 900GENERAL JOURNAL PAGEJl Date Account Titles and Explanation Ref. Debit Credit 2020 Oct. 1 Cash 101 10.000 Share CapitalOrdinary 31 1 10.000 (Issued shares for cash) 1 Equipment 157 5.000 Notes Payable 200 5.000 (Issued 3-month, 12% note for ofce equipment) 2 Cash 101 1.200 Unearned Service Revenue 209 1.200 (Received cash from R. Knox for future services) 3 Rent Expense 7129 900 Cash 101 900 (Paid October rent) 4 Prepaid Insurance 130 600 Cash 101 600 (Paid one-year policy; effective date October 1) 5 Supplies 1 26 2.500 Accounts Payable 201 2.500 (Purchased supplies on account from Aero Supply) 20 Dividends 332 500 Cash 101 500 (Declared and paid a cash dividend} 26 Salaries and Wages Expense 726 4.000 Cash 101 4.000 (Paid salaries to date) 31 Cash 101 10,000 Service Revenue 400 10,000 (Recein cash for services performed)
