Reference no: EM133457238

Fundamental Accounting

1. Mimi started a new business called Omo Company and completed the following transactions during November:
Nov.1 Mimi transferred 56,000 out of a personal savings bank account to a checking accounts her in the name of the business.
1. Rented office space and paid cash for the month's rent of 800
3. Purchased electrical equipment for 14,000 by paying 3,200 and agreeing to pay the remaining balance in six months.
5. Purchased office supplies by paying 900 cash.
6. Completed electrical work and received 1,000 cash for doing the work.
7. Purchased 3,800 of office equipment on credit
15. Completed electrical work on credit in the amount of 4,000
20. Paid for the office equipment purchased on Nov.9
24. Billed a customer for electrical work completed 600
28. Received 4,000 for the work completed on Nov.15
30. Paid salary of employees 1,200
30. Paid the monthly utilities bill 440
30. Withdrew 700 from the business for personal use

Required:

Question 1. Use additions and subtractions to show the effect of each transaction on the items in the equation. Show new totals after each transaction.

Question 2. Prepare an income statement, a statement of owner's equity, and a balance sheet

2. Worksheet two from chapter two
Given below is a list of selected transactions performed by John Décor during the month of September 2021, the first month of operation.

A. Record the transactions in General Journal
B. Post each entry to the perspective account. Use the four - column account.
C. Prepare a trial balance
D. Prepare a worksheet. Assume the following adjustment for the accounts and journalize them.
E. Prepare a Balance sheet, Income statement and statement of owner's equity
F. Close the temporary accounts.

Sept. 10 Mr. John transferred cash from his personal account to be used in the business, Birr 10,000.
" 10. Paid rent for the month, Birr 500
" 11. Purchased a truck for Birr 12,000 by paying Birr 3,000 Cash and giving a notes payable for the difference.
" 12. Purchased equipment on account Birr 1,460.
" 13. Purchased supplies on account Birr 240.
" 14. Paid insurance premiums of Birr 170 (Dr. prepaid insurance)
" 15. Received cash for services completed Birr 360.
" 16. Purchased Supplies on account Birr 240.
" 18. Paid salaries of Birr 900.
" 21. Paid its liabilities for the purchase of equipment
" 24. Recorded sales on account Birr 2,080
" 26. Received an invoice for truck expense Birr 115
" 27. Paid utilities expense Birr 205.
" 27. Paid miscellaneous expenses Birr 73.
" 28. Received cash from customers on account birr 1,420
" 30. Paid salaries to employees Birr 950
" 30. The owner withdrew Birr 1, 750 for personal use.