Question

1 Nunya Business started operations on july 1, 2019 with an initial issuance of common stock. $31,700

2 Nunya business performed services for one month on account. $26000

3. Nunya Business has received 25% of the amount you recorded in Transaction#2 as partial payment of its accounts receivable. 4. Nunxa Business paid 10% of the amount you recorder in Transaction#2 as salary expense. 5. Nunya Business paid 5% of the amount you recorder in Transaction#2 as rent expense.

Answer 1

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Profit & Loss Entry # Cash Liabilities + Shareholder's Equity Common Retained = Liabilities + Stock + Earnings 31,700 26,000 Revenue - Expenses Assets Accounts + Receivable 31,700 26,000 6,500 (6,500) (2,600) (1,300) 34,300 19,500 = Net Income 26,000 26,000 Cash Flow Account Name FA Cash/Common Stock NA Accounts Receivable/Revenue OA Cash/Accounts Receivable OA Salary/Cash |ОА Rent Expense/Cash Check TRUE TRUE TRUE TRUE TRUE 3 (2,600) (1,300) 22,100 2,600 1,300 (2,600) (1,300) 31,700 26,000 3,900 22,100

Nunya Business Balance Sheet as at 31 Dec 2019 Particulars Cash Accounts Receivable Total Assets Amount $ 34,300 $ 19,500 $ 53,800 Liabilities Common Stock Retained Earnings Total Liabilities/Equity $ $ $ $ 31,700 22,100 53,800 Working Notes: 1. Cash = 31700+6500-2600-1300 2. Accounts Receivable = 26000-25% of 26000)

Nunya Business Income Statement for the period ended 31 Dec 2019 Particulars Revenue Amount $ 26,000 $ 3,900 Total Expenses Salary Expense Rent Expense $ 2,600 $ 1,300 Net Income $ 22,100

Chart of Accounts Cash Common Stock Revenue Accounts Receivable Salary Expense Rent Expense

$ General journal in the books of Nunya Business for the year ending 31 Dec 2019 Date Account Titles and Explanation Debit Credit 01-07-19 Cash $ 31,700 Common Stock $ 31,700 (Being cash invested into business as common stock) Accounts Receivable $ 26,000 Revenue $ 26,000 (Being services performed for one month on account) Cash 6,500 Accounts Receivable $ 6,500 (Being 25% of $26000 received from customers on account) Salary Expense $ 2,600 Cash $ 2,600 (Being Salary Expenses paid for the month) Rent Expense $ 1,300 Cash $ 1,300 (Being rent paid for the month) $