Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The transaction below happened at Oman Cement Company: 1. 1st of January, the owner invested cash 200,000 and Equipment 50,000 in the company. 2. 2nd

image text in transcribed
image text in transcribed
The transaction below happened at Oman Cement Company: 1. 1st of January, the owner invested cash 200,000 and Equipment 50,000 in the company. 2. 2nd of January, the company converted 44,000 Note payable to ordinary shares. 3. 3rd of January, the company bought land for 35,000 , paid cash 20,000 and the rest on credit. 4. 4th of January, the company paid electricity 3,400 and rent 5,000 by cheque. 5. 7th of January, the owner of the company withdrew 15,000 for his personal use. 6. 10th of January, the company sold a used delivery truck for 5,000 . The company received 2,000 and sent a bill for the rest. 7. 12th of January, the board of directors declared dividends 6,800 for the ordinary shareholders. 8. 15th of January, the company received maintenance services for their equipment for 5,900 but didn't pay the provider. 9. 18th of January, the company paid 7,200 for one year insurance starting from the 1st of January. 10. 21st of January, the company received 55,000 for services that should be provided next month. 11. 22nd of January, the owner of the company returned the amount withdrew on the 7th of January. 12. 24th of January, the company issued ordinary shares for 100,000 to settle a note payable. 13. 25th of January, the company billed the customers 33,000 for the services provided. 14. 27th of January, the company sold an old office furniture and billed the purchaser for 6,300 . 15. 30th of January, paid dividends for the ordinary shareholders 10,300 . 16. 31st of January, the company paid the credit on the land bought on the 3rd of January. Q5. Consider the following transaction happened next month and prepare the adjusting entries. 1. 1st of February, the company paid the maintenance services received on the 15 th of January. 2. 3rd of February, the company used two months of the insurance services paid for on the 18th of January. 3. 12th of February, the company provided services for 44,000 from the services paid on the 20th of the January. 4. 20th of February, the company received 15,000 of the amounts billed on the 25th of January. Q6. Prepare the adjusting Trial Balance according to the above adjustment. Q7. Prepare the Income Statement of the company. Q8. Prepare the statement of Retained Earnings Q9. Prepare the statement of Financial Position

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting Principles A Business Perspective Financial Accounting Chapters 9 To 18

Authors: Bill Buxton, Amy Sibiga

1st Edition

1461160863, 978-1461160861

More Books

Students also viewed these Accounting questions

Question

Were any of the authors students?

Answered: 1 week ago

Question

What are some tips to consider when writing a business document

Answered: 1 week ago

Question

Compare and contrast verbal and nonverbal codes

Answered: 1 week ago

Question

Define and discuss the nature of ethnocentrism and racism

Answered: 1 week ago

Question

Define and discuss racial and ethnic stereotypes across cultures

Answered: 1 week ago