Exercise 9: Bright Land company had the following transactions during August 2018: 1. The owner opened a business bank account and deposited OMR 50,000 from his personal fund. 2. Bright Land company purchased land for OMR 22,000. 3. Bright Land purchased supplies for OMR 4,000, and agreed to pay the supplier after one month. 4. Bright Land sold goods to customers on account OMR 6000. 5. Bright Land received cash of OMR 8,000, for providing services to the customer. 6. Bright Land paid the following expenses during the month, wages OMR 2,450 utilities OMR 550 and rent OMR 1000. 7. Bright Land paid creditors on account OMR 4000. 8. Bright Land received cash from the customers for goods sold on account OMR 6000. Indicate the effect of each transaction on the accounting equation and state the balance after recording each transaction.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Topic Video
Question
100%
Exercise 9: Bright Land company had the following transactions during August
2018:
1. The owner opened a business bank account and deposited OMR 50,000
from his personal fund.
2. Bright Land company purchased land for OMR 22,000.
3. Bright Land purchased supplies for OMR 4,000, and agreed to pay the
supplier after one month.
4. Bright Land sold goods to customers on account OMR 6000.
5. Bright Land received cash of OMR 8,000, for providing services to the
customer.
6. Bright Land paid the following expenses during the month, wages OMR
2,450 utilities OMR 550 and rent OMR 1000.
7. Bright Land paid creditors on account OMR 4000.
8. Bright Land received cash from the customers for goods sold on account
OMR 6000.
Indicate the effect of each transaction on the accounting equation and state the
balance after recording each transaction.
Transcribed Image Text:Exercise 9: Bright Land company had the following transactions during August 2018: 1. The owner opened a business bank account and deposited OMR 50,000 from his personal fund. 2. Bright Land company purchased land for OMR 22,000. 3. Bright Land purchased supplies for OMR 4,000, and agreed to pay the supplier after one month. 4. Bright Land sold goods to customers on account OMR 6000. 5. Bright Land received cash of OMR 8,000, for providing services to the customer. 6. Bright Land paid the following expenses during the month, wages OMR 2,450 utilities OMR 550 and rent OMR 1000. 7. Bright Land paid creditors on account OMR 4000. 8. Bright Land received cash from the customers for goods sold on account OMR 6000. Indicate the effect of each transaction on the accounting equation and state the balance after recording each transaction.
Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Accounting Equation
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education