Question

EduOasis on or before September 28, 2020 Question The following are the business transactions of Rustic Camp Sites for November 2019. Date Narration Event 1 2 3 4 5 6 Acquired $150,000 from issuing common stock Bought a photocopier for $2,500, paying cash Received a bank loan $70,000 Bought Office premises $130,000, paying cash Revenue earned from providing services $35,000 Paid utility expenses $2,500 Bought furniture and paid 5,000 Salary paid to employees $10,000 Cash dividend paid $5,000 Paid interest expenses $200 Bought office equipment $2,000, paying cash 7 8 9 10 11 You are required to:

Answer 1

Date	Assets	=Liabilities	+ Equity
1	$150,000(Cash)	0	$150,000(capital)
2	+$2,500(photocopier) -$2,500(Cash)	0	0
3	$70,000(Cash)	$70,000(loan)	0
4	+$130,000(office premises) -$130,000(Cash)	0	0
5	+$35,000(cash)	0	+$35,000(revenue)
6	-$2,500(cash)	0	-$2,500(expense)
7	+$5,000(furniture) -$5,000(cash)	0
8	-$10,000(cash)	0	-$10,000(salary)
9	-$5,000(cash)	0	-$5,000(retained earnings)
10	-$200(Cash)	0	-$200(expense)
11	-$2,000(cash) +$2,000(office equipment)	0	0

Income Statement

Particulars	Amount
Service revenue	$35,000
Less:
Utility expense	$2,500
Salaries	$10,000
Interest expense	$200
Net income	$22,300

Statement of stcokholders equity

Particulars	Amount
Beginning common stock	$150,000
Add:Net income	$22,300
Less: Dividends	$5,000
Total stockholders equity	$167,300

Note: Cash dividend do not affect the Income statement. Cash Dividend only affects the Cash and Stockholders equity.