In: Accounting
As the accountant of the company, you have been asked to do the following:
A) summary of transactions
Accounting equation assets = liabilities + owners equity
summary showing effects on accounting equation
Sept1 - aseets( cash increase) and owners equity increase
Sept3 - assets(fixed assets) increase and asset (cash) decrease
Sept4 - assets( computer paper ) increase and liabilities( payable to ACME ) increase
September 10 - owners equity increase (via profit and loss account) and assets ( cash increase)
Sept 11 - owners equity decrease ( via profit and loss account) and liabilities ( payable to daily news ) increase
Sept 12 - owners equity increase (via profit and loss account) assets increase ( cash (1500) and debtors (2000)) increase
Sept 23 - asset ( cash ) decrease and liabilities ( payable to daily news ) decrease
Sept 28 - asset (cash) increase and assets (debtors ) increase
Sept 29 - assets ( cash) decrease and owners equity decrease (drawings)
Sept 30 - assets ( cash decrease) and owners equity decrease ( via profit and loss account)
INCOME STATEMENT
REVENUES
sales 4700
less EXPENCES
Rent salary and utilities 1700
advertisement expense 250
NET INCOME. 2750
BALANCE SHEET OF COMFORT REALITY FOR PERIOD SEPTEMBER
Particulars | liabilities | particulars | assets |
Owners equity (15000+2750-1300) add netincome less drawings | 16450 | computer equipment | 7000 |
Payable to acme | 1600 | Computer paper | 1600 |
Debtors | 1400 | ||
Cash | 8050 | ||
18050 | 18050 |
As it is a general question no specific format is followed for income statement and balance sheet
computer paper is treated as fixed asset as it is given it will last for several months