Use
the Following information for the Question Numbers 5 to 10.
Mr.
Mazin started a business in the month of March 2020. He has to
prepare a financial statement at the end of the month for review of
the operation of his business. The following transactions are given
below. You are required to help Mr. Mazin to prepare his financial
statement.
March
1. Invested a cash of RO 50,000 and land worth RO 20,000 to start a
new business
March
2. Purchased machinery and other equipment’s on account RO
15,000
March
3. Purchased office supplies for cash RO 1,500
March
3. Purchased insurance policy for the building RO. 960 for one
year.
March
4. Decided to recruit a helper next month.
March
8. Provided services to a client RO 2,000 and received 60% of the
amount and remaining after two months
March
10. Service provided to another client Mr. Salim RO 1,200 but he
agreed to pay later.
March
12. Purchased Office supplies for cash RO 5,000
March
14. Mr. Mazin agreed to purchase a new machinery for RO 5,800 in
the month of December 2020.
March
15. Received remaining cash from the client services provided on
March 8th .
March
17. He purchased a new car RO 12,000 for personal use with his own
money.
March
17. He purchased a new television for RO 889 with the money given
by his father.
March
18. Provided services to another client for RO 500 and he paid only
RO. 150 remaining, he agreed to pay next month.
March
22. Purchased a packing machine and returned it back on the same
day as it was defective OMR 299.
March
25. Paid cash RO. 5000 for the machinery purchased on March 2nd
.
March
28. Took money from the business for personal use RO 1,200
March
30. Received amount from the customer whose service is provided on
March10th..
March
31. Paid wages for the month RO 3000
March
31. Planned to purchase additional office supplies for RO 4,580
next month.
March
31. Received water and electricity bill for the month RO. 89.
From
the above transaction you are required to prepare:
5.
Analyze the transaction by using accounting equation. (0.5 Mark*13
= 6.5 marks)
6.
Prepare the Journal entries for the month of March. (0.25 for each
account= 7 marks)
7.
Post the entries and calculate the balances. (0.5 Mark*13 = 6.5
marks)
8. Use
the balances to prepare the unadjusted trial Balance.
9.
After completing the Unadjusted trial balance use the below
information to prepare the Adjusted Trial Balance.
Additional information
a. The
revenue earned but not recorded at the end of the month is RO
2,000
b.
Insurance expense for the month RO 80
c. The
machinery has a useful life of 5 years and a residual value of RO
500.
d.
Office supplies at the end of the month 3200.
e.
Depreciation on all fixed asset to be provided 6% of the asset
value.