Question

1.      Ruwi Construction Company had the following transactions during June 2016.

Transactions
(1) Issued ordinary shares in exchange for R.O.35,000 cash on June 1.
(2) Purchased equipment for R.O.6,000 paying R.O.2,500 in cash and the remainder in the future.
(3) Purchased supplies for R.O.2,200 on account.
(4) Received a bill from Oman News for R.O.800 for advertising.
(5) Received R.O. 10,500 in cash from customers for services provided.
(6) Paid salaries of R.O. 2,100 to the company employees.
(7) Billed its customers R.O. 2,000 for services provided.
(8) Paid R.O. 800 to Oman News for advertising that was previously billed in Transaction 4.
(9) Paid dividends of R.O. 6,200.
(10) Received a utility bill for the month for R.O. 1,500.
Use the basic accounting equation to record these transactions

Answer 1

					Assets				Liabilities						Stockholder's		Equity				Amount $
Transaction	Cash	+	Equipment	+	Supplies	+	Accounts receivable	=	Accounts payable	+	Ordinary Share	-	Dividends	+	Service Revenue	-	Salaries Exp.	-	Utility Exp.	-	Advertising Exp.
1	35,000	+		+		+		=		+	35,000	-		+		-		-		-
2	-2,500	+	6,000	+		+		=	3,500	+		-		+		-		-		-
3		+		+	2,200	+		=	2,200	+		-		+		-		-		-
4		+		+		+		=	800	+		-		+		-		-		-	800
5	10,500	+		+		+		=		+		-		+	10,500	-		-		-
6	-2,100	+		+		+		=		+		-		+		-	2,100	-		-
7		+		+		+	2,000	=		+		-		+	2,000	-		-		-
8	-800	+		+		+		=	-800	+		-		+		-		-		-
9	-6,200	+		+		+		=		+		-	6,200	+		-		-		-
10		+		+		+		=	1,500	+		-		+		-		-	1,500	-
Balance	33,900	+	6,000	+	2,200	+	2,000	=	7,200	+	35,000	-	6,200	+	12,500	-	2,100	-	1,500	-	800