Reference no: EM132912532

Question - After several months of planning, Jasmine Worthy started a haircutting business called Expressions. The following events occurred during its first month of business.

a. On august 1, Worthy invested Rs 30,000 cash and Rs 150,000 of equipment in Expression in exchange for its share capital.

b. On August 2, Expressions paid Rs 6,000 cash for furniture for the shop.

c. On August 3, Expressions paid Rs 5,000 cash to rent space in a strip mall for August.

d. On August 4, it purchase Rs 12,000 of equipment on credit for the shop (using a long-term borrowings)

e. On August 5, Expressions opened for business. Cash received from haircutting services in the first week and a half of business (ended August 15) was Rs 8,250.

f. On August 15, it provided Rs 1,000 of haircutting services on credit.

g. On August 17, it received a Rs 1000 cheque for services previously rendered on credit.

h. On August 17, it paid Rs 1,250 cash to an assistant for hours worked during the grand opening. It is treated as current month expense.

i. Cash received from services provided during the second half of August was Rs 9,300.

j. On August 31, it paid a Rs 4,000 instalment toward principal on the long-term borrowings on August 4.

k. On August 31, it paid Rs 9,000 cash in dividends to Worthy (sole shareholder).

Required - Show the effects of each transaction using the accounting equation.