-To work on the statement of financial position

In January 2018, Carmen Ding decided to open a small ribbon shop in Bandar Baru Nilai. During the month she put together i finance the new venture. Two of her cousins agreed to loan the business RM10,000 for one year at a 6 percent interest rate. Fc On March 1, 2018, with the help of an uncle who practiced law. Carmen formally incorporated her business, which she named simple incorporation, but since Carmen was family, he waived the fee As soon as the new business was incorporated, Carmen opened a bank account with CIMB bank and deposited the cousins R RM600 per month. paid on the last day of the month The agreement was for an 18-month period beginning April 1. The agreer signing Over the next few weeks, Carmen was actively engaged in getting ready to open the store for business on April 1. Fortunately addition, the landlord agreed to repaint the store at no cost, using colors of Carmen's choice. For her part. Carmen ordered, rec register with credit card processing capabilities from the local credit card charge processing company after paying a refundable store supplies and placed and paid for advertising announcing the store opening in the April 2 edition of the local paper. In add of her business transactions and correspondence On March 31, before opening for business the next day, Carmen reviewed the activity in the company's cash bank account. Fo 1 Last two months' rent 2 Opening merchandise inventory 3 Cash register deposit 4 Store supplies 5 April 2 edition advertising 6 Used computer purchase RM 1 200 3.300 250 100 150 2.000 After reviewing her cash transaction records, Carmen prepared a list of Ribbons an' Bows assets and sources of its capital (ser Exhibit 1: Carmen's 31 March 2018, Ribbons an' Bows and Capital Sources List Assets Cash 4,000 RM Inventory 3,300 Supplies 100 Prepaid Rent 1.200 150 Prepaid Advertising Computer/Software Cash register deposit 2.000 250 11,000 Sources of Capital Cousin's loan Carmen's equity 10,000 1,000 11,000 Carmen eventually decided to expand her business by selling custom-designed ribbon table arrangements for weddings and e May 1 Later, at a family function, one of Carmen's cousins reminded her that she had promised to send the cousins a financial report The next day, Carmen reviewed the following Ribbons an' Bows information she had gathered over the last four months Customers had paid RM7 400 cash for ribbons and accessories but she was still owed RM320 for ribbon arrangements A part-time employee had been paid RM1,510 but was still owed RM90 for work performed during the last week of Jun Rent for the three-month period had been paid in cash at the end of each month, as stipulated in the rental agreement Inventory replenishments costing RM2,900 had been delivered and paid for by June 30. Carmen estimated the June 30 The small opening office supplies inventory was nearly all gone She estimated supplies costing RM20 had not been us Carmen believed that the initial three months of business had been profitable, but she was puzzled by the fact that the cash in Carmen also was cancemed about how she should reflect the following in her financial report No interest had been paid on the cousins' loan The expenditures made for the desktop computer and its related software and the commercial sewing machine. She be commercial sewing machine Carmen estimated that it would be used for about five years from its May 1 purchase date software would have to be replaced in two years' time. Carmen believed the sewing machine and the computer along The free legal work performed by her uncle and the free cash register provided by the Local credit card charge process Carmen had not paid herself a salary or dividends during the four months of operations. If cash was available, she anti business Before starting her business, Carmen had worked for RM1,300 a month as a cashier in a local grocery store