Reference no: EM132975715
Question - Adam is a Graduate who was planning to start up his own business soon after his studies in Business Management. He achieved his goal by starting up Adam Enterprise on 01/07/2020 and completed the following transactions during the month.
01/07 Invested $25,000 in cash.
01/07 Employed a receptionist and agreed to pay $1,500 fortnightly.
03/07 Paid quarterly office building rent $3,300.
03/07 Paid for office computers $4,400. Computers are expected to remain in service for 5 years.
04/07 Purchased office furniture on credit $2,000. The furniture should last for 10 years.
05/07 Purchased supplies on credit, $1,000, terms 2/10, n/30.
08/07 Performed services for a client on credit $ 1,000.
11/07 Received an advance payment of $500 for a service to be performed.
12/07 Performed service for a client and received cash $2,000.
14/07 Paid for the supplies purchased on 05/07.
16/07 Sent an invoice for a client for services rendered $ 500.
17/07 Paid utility expenses $250.
18/07 Adam spent $ 500 for his birthday party which was funded by Adam Enterprise.
Required - Prepare the following for 30/07/2020.
(a) Journal entries
(b) Cash Ledger
(c) Statement of Financial Performance (Income Statement)
(d) Statement of Changes in Equity
(e) Statement of financial position.