Financial balances for the business of Abu Enterprise on 30 th June 2009 are provided as below:


Question Description:

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Financial balances for the business of Abu Enterprise on 30 th June 2009 are provided as below: Assets Assets Assets Assets Assets Assets Assets = Liabilities Liabilities Liabilities + Equity Cash + Accounts Receivable + Office Supplies + Equipment = Accounts Payable + Note Payable + Abu, Capital Bal. 11,000 + 15,000 + 1,500 + 24,000 = 3,500 + 12,000 + 36,000 During July, the business of Abu entered into the following transactions: Collected RM8,000 of the accounts receivable. Paid RM1,800 on accounts payable. Purchased equipment for RM8,100. Paid RM3,000 in cash and signed a Maybank business loan agreement for RM5,100 to pay for the remainder of the equipment. Billed customers for the services performed, RM6,300. Purchased supplies on credit, RM375. Paid expenses in cash, RM2,925 (salary, RM1,650; filling fee RM825; assessment, RM450) The owner withdrew RM2,000 for personal use. Used RM900 of supplies. Abu invested another RM14,000 cash in the business. Paid RM 50 to advertise in the County News. Performed RM 3,300 of services on account. Received a cash payment of RM 4,300 for services provided on account on transaction 4. Paid for the supplies purchased on account on transaction 5. Paid RM 150 for utilities. Financial balances for the business of Abu Enterprise on 30 th June 2009 are provided as below: Assets Assets Assets Assets Assets Assets Assets = Liabilities Liabilities Liabilities + Equity Cash + Accounts Receivable + Office Supplies + Equipment = Accounts Payable + Note Payable + Abu, Capital Bal. 11,000 + 15,000 + 1,500 + 24,000 = 3,500 + 12,000 + 36,000 During July, the business of Abu entered into the following transactions: Collected RM8,000 of the accounts receivable. Paid RM1,800 on accounts payable. Purchased equipment for RM8,100. Paid RM3,000 in cash and signed a Maybank business loan agreement for RM5,100 to pay for the remainder of the equipment. Billed customers for the services performed, RM6,300. Purchased supplies on credit, RM375. Paid expenses in cash, RM2,925 (salary, RM1,650; filling fee RM825; assessment, RM450) The owner withdrew RM2,000 for personal use. Used RM900 of supplies. Abu invested another RM14,000 cash in the business. Paid RM 50 to advertise in the County News. Performed RM 3,300 of services on account. Received a cash payment of RM 4,300 for services provided on account on transaction 4. Paid for the supplies purchased on account on transaction 5. Paid RM 150 for utilities. Instructions: (a) Analyze the effects of the above business transactions on the accounting equation. (b) Prepare an Income Statement for the month of July 2009. (c) Prepare a Balance Sheet as at July 31, 2009. (a) Analyze the effects of the above business transactions on the accounting equation. (b) Prepare an Income Statement for the month of July 2009. (c) Prepare a Balance Sheet as at July 31, 2009.

Answer

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