Exercise 1 The following are transactions for Sameer new bus

Exercise 1 The following are transactions for Sameer new business during the month of September, we a going to see their effect on the basic accounting equation: re 1- Sameer invested $15000 cash in the business 2- Purchase of equipment of $7000. 3- Purchase of supplies on credit of $1600. 4- Provide services of cash $1200. 5- Purchase of advertising on credit of $250. 6- Provide services of $3500, cash $2000 and $1500 billed on account 7- Payment of expenses of cash $1700. 8- Payment of accounts payable of $250. 9- Receipt of cash from customers on account of $600. 10- Withdrawal of cash by owner of $1300. Instructions: A: Prepare a tabular analysis for the previous transactions. B: Prepare Financial Statements

Solution

Solution A:

Solution B:

Accounting Equation for September
Event	Asset	=	Liabilities	+	Owner\'s Equity
Cash	+	Equipment	+	Accounts Receivabe	+	Supplies	Accounts Payable	Owner\'s Capital	+	Retained Earnings
1	$15,000.00										$15,000.00
2	-$7,000.00		$7,000.00
3							$1,600.00		$1,600.00
4	$1,200.00												$1,200.00
5									$250.00				-$250.00
6	$2,000.00				$1,500.00								$3,500.00
7	-$1,700.00												-$1,700.00
8	-$250.00								-$250.00
9	$600.00				-$600.00
10	-$1,300.00										-$1,300.00
Bal.	$8,550.00	+	$7,000.00	+	$900.00	-	$1,600.00	=	$1,600.00	+	$13,700.00	+	$2,750.00