Question

Rivera Roofing Company, owned by Reyna Rivera, began operations in July and completed these transactions during that first month of operations.

July 1 Reyna Rivera invested $80,000 cash in the company.

The company rented office space and paid $700 cash for the July rent.

The company purchased roofing equipment for $5,000 by paying $1,000 cash and agreeing to pay the $4,000 balance in 30 days.

The company purchased office supplies for $600 cash.

The company completed work for a customer and immediately collected $7,600 cash for the work.

The company purchased $2,300 of office equipment on credit.

The company completed work for a customer on credit in the amount of $8,200.

The company purchased $3,100 of office supplies on credit.

The company paid $2,300 cash for the office equipment purchased on July 10.

The company billed a customer $5,000 for work completed; the balance is due in 30 days.

The company received $8,200 cash for the work completed on July 15.

The company paid an assistant’s salary of $1,560 cash for this month.

The company paid $295 cash for this month’s utility bill.

Reyna Rivera withdrew $1,800 cash from the company for personal use.

1- Draft the Accounting Equation -Create a table with assets = liabilities + equity

2- Prepare the income statement and the statement of owner’s equity for the month of July, and the balance sheet as of July 31. (2+.5+.5+1)

Part II: Answer the question Q-1 Explain the Principles and Assumptions of Accounting.

Answer 1