VOVA is a service business established by MR. Karim from 2 years ago. MR. Karim asked your group to complete the entire accounting cycle for the first Month of 2020 using the following accounts: I Asset Accounts: Cash Accounts Receivable Prepaid Rent Prepaid insurance Office Supplies Liability Accounts: Owner's Equity Accounts Karim, Capital Withdrawals Accounts Payable Salaries Payable Rent payable Interest payable Bank loan Revenue Accounts Fees revenue Expense Accounts Salaries Expense Interest expense Rent Expense Office Supplies Expense The opening balances of Asset, liability, and Owner's Equity accounts of ROMA business at January 1, 2020 are: Karim, Capital S640,000. Cash S100,000. Land S 600,000. Accounts receivable S 300,000 - Accounts payable $240,000- Bank loans 120,000. The following are the transactions of January, 2020: Jan 2: Collected $40,000 on an open accounts receivable 3: Purchased an additional tract of land for $80,000 cash 4: Purchased office supplies on account, S5,000 5: Provided services on account to a customer for $60,000 6- Purchased insurance policy for one-year for $12,000 7: Borrowed 548,000 from ABC Bank. II: Paid salaries of $12,000 12: Provided services to customers for cash, 544,000 13- Purchased office supplies on account 58,000 17: Paid rent in advance for one-year 56,800 20: Paid salaries of $16,000 24: Paid $64,000 on the open accounts payable. 28: Repaid bank loans of $88,000 30-Paid interest on bank loans of $2,400. Adjusting data A-One-month insurance expired. B-Office supplies used $2,000 C- Accrued interest 5800 D- One month rent expired Page 8 of 8 VOVA is a service business established by MR. Karim from 2 years ago. MR. Karim asked your group to complete the entire accounting cycle for the first Month of 2020 using the following accounts: I Asset Accounts: Cash Accounts Receivable Prepaid Rent Prepaid insurance Office Supplies Liability Accounts: Owner's Equity Accounts Karim, Capital Withdrawals Accounts Payable Salaries Payable Rent payable Interest payable Bank loan Revenue Accounts Fees revenue Expense Accounts Salaries Expense Interest expense Rent Expense Office Supplies Expense The opening balances of Asset, liability, and Owner's Equity accounts of ROMA business at January 1, 2020 are: Karim, Capital S640,000. Cash S100,000. Land S 600,000. Accounts receivable S 300,000 - Accounts payable $240,000- Bank loans 120,000. The following are the transactions of January, 2020: Jan 2: Collected $40,000 on an open accounts receivable 3: Purchased an additional tract of land for $80,000 cash 4: Purchased office supplies on account, S5,000 5: Provided services on account to a customer for $60,000 6- Purchased insurance policy for one-year for $12,000 7: Borrowed 548,000 from ABC Bank. II: Paid salaries of $12,000 12: Provided services to customers for cash, 544,000 13- Purchased office supplies on account 58,000 17: Paid rent in advance for one-year 56,800 20: Paid salaries of $16,000 24: Paid $64,000 on the open accounts payable. 28: Repaid bank loans of $88,000 30-Paid interest on bank loans of $2,400. Adjusting data A-One-month insurance expired. B-Office supplies used $2,000 C- Accrued interest 5800 D- One month rent expired Page 8 of 8
