Johnny, a sole proprietor, has the following account balances: Cash, RM5,000; Accounts Receivable, RM2,000; Prepaid Rent RM1,500; Supplies, RM850; Equipment, RM6,000; Accounts Payable, RM2,500; Capital, RM5,000; Profit b/d RM7,850. Business transactions during December are presented as follows: Company received cash from clients for services, RM4,500 Johnny paid to creditors RM500, Paid office rent for the month of December, RM750, Company billed client for maintenance services on account, RM5,200 Supplies were purchased on account, RM650, Company received cash from clients billed previously, RM6,000 Johnny received an invoice for office equipment repair services for December (the invoice will be paid next month), RM850, Johnny paid monthly salaries, RM2,700, Utilities expense were paid, RM280, Miscellaneous expense were paid, RM550, Johnny withdraw RM3,000 for his personal use i. ii. ii. iv. V. vi. vii. vii. ix. X. xi. Required: Using the following format, complete the fundamental accounting equation for the business: ASSETS Cash Liabilities Accounts Equity + Net Income Capital Profits b/d Prepaid Supplies rental Equipment Expenses Accounts Revenue receivable payable

Johnny, a sole proprietor, has the following account balances: Cash, RM5,000; Accounts Receivable, RM2,000; Prepaid Rent RM1,500; Supplies, RM850; Equipment, RM6,000; Accounts Payable, RM2,500; Capital, RM5,000; Profit b/d RM7,850. Business transactions during December are presented as follows: Company received cash from clients for services, RM4,500 Johnny paid to creditors RM500, Paid office rent for the month of December, RM750, Company billed client for maintenance services on account, RM5,200 Supplies were purchased on account, RM650, Company received cash from clients billed previously, RM6,000 Johnny received an invoice for office equipment repair services for December (the invoice will be paid next month), RM850, Johnny paid monthly salaries, RM2,700, Utilities expense were paid, RM280, Miscellaneous expense were paid, RM550, Johnny withdraw RM3,000 for his personal use i. ii. ii. iv. V. vi. vii. vii. ix. X. xi. Required: Using the following format, complete the fundamental accounting equation for the business: ASSETS Cash Liabilities Accounts Equity + Net Income Capital Profits b/d Prepaid Supplies rental Equipment Expenses Accounts Revenue receivable payable

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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