Question

Use the following information for the Question Numbers 5 to 10. Mr. Mazin started a business in the month of March 2020. He has to prepare a financial statement at the end of the month for review of the operation of his business. The following transactions are given below. You are required to help Mr. Mazin to prepare his financial statement March 1. Invested a cash of RO 50,000 and land worth RO 20,000 to start a new business March 2. Purchased machinery and other equipment's on account RO 15.000 March 3. Purchased office supplies for cash RO 1,500 March 3. Purchased insurance policy for the building RO 960 for one year. March 4. Decided to recruit a helper next month. March 8. Provided services to a client RO 2,000 and received 60% of the amount and remaining after two months March 10. Service provided to another client Mr. Salim RO 1.200 but he agreed to pay later. March 12. Purchased Office supplies for cash RO 5,000 March 14. Mr. Mazin agreed to purchase a new machinery for RO 5,800 in the month of December 2020. March 15. Received remaining cash from the client services provided on March 8 March 17. He purchased a new car RO 12,000 for personal use with his own money March 17. He purchased a new television for RO 889 with the money given by his father. March 18. Provided services to another client for RO 500 and he paid only RO. 150 remaining, he agreed to pay next month March 22. Purchased a packing machine and returned it back on the same day as it was defective OMR 299. March 25. Paid cash RO 5000 for the machinery purchased on March 2u March 28. Took money from the business for personal use RO 1.200 March 30. Received amount from the customer whose service is provided on March 10 March 31. Paid wages for the month RO 3000 March 31. Planned to purchase additional office supplies for RO 4,580 next month. March 31. Received water and electricity bill for the month RO. 89. From the above transaction you are required to prepare: 5. Analyze the transaction by using accounting equation. (0.5 Mark*13 - 6.5 marks) 6. Prepare the Journal entries for the month of March. (0.25 for each account= 7 marks) 7. Post the entries and calculate the balances. (0.5 Mark 13 = 6.5 marks) 8. Use the balances to prepare the unadjusted trial Balance (7 marks) 9. After completing the Unadjusted trial balance use the below information to prepare the Adjusted Trial Balance (10 Marks) Additional information a. The revenue earned but not recorded at the end of the month is RO 2.000 b. Insurance expense for the month RO 80 c. The machinery has a useful life of 5 years and a residual value of RO 500. d Office supplies at the end of the month 3200. e. Depreciation on all fixed asset to be provided 6% of the asset value. 10. Use the adjusted Trial Balance to prepare Income statement, statement of owners' equity and statement of financial Position. (8 marks)

answers for 7 and 8 please if you can do 9 and 10 that would be perfect too, please label each answer for the question number

Answer 1

QUESTION 7 Dr Cr Cr Dr Capital Date Particulars Amount Date Particulars 28/03/2020 Cash 1,200 01/03/2020 Cash 01/03/2020 Land Amount 50,000 20,000 Date Particulars 01/03/2020 Capital 08/03/2020 Service Revenue 15/03/2020 Account Receivable 18/03/2020 Account Receivable 30/03/2020 Account Receivable Cash Amount Date Particulars 50,000 03/03/2020 Office Supplies 1,200 03/03/2020 Pre-Paid Insurance 800 12/03/2020 Office Supplies 150 25/03/2020 Account Payable 1,200 28/03/2020 Capital 31/03/2020 Wages Amount 1,500 960 5,000 5,000 1,200 3,000 Closing Balance 36,690.00 Closing Balance 68,800 Dr Cr Cr Particulars Dr Account Payable Date Particulars Amount Date Particulars 25/03/2020 Cash 5,000 02/03/2020 plant and machinery Land Amount Date 20,000 Particulars Date 01/03/2020 Capital Amount Amount 15,000 Closing Balance 20,000.00 Closing Balance 10,000 Dr Cr Dr Cr Particulars Plant and machinery Amount Date 15,000 Particulars Amount Date 02/03/2020 Account Payable Date Service Revenue Particulars Amount Date Particulars 08/03/2020 Account Receivable 08/03/2020 Cash 10/03/2020 Account Receivable 18/03/2020 Account Receivable Amount 800 1,200 1,200 500 Closing Balance 15,000.00 Closing Balance 3,700 Dr Cr Dr Cr Particulars Particulars Amount Date Date 03/03/2020 Cash 12/03/2020 Cash Office Supplies Amount Date 1,500 5,000 Loan Particulars Amount Date Particulars 17/03/2020 Television Amount 889 Closing Balance 6,500.00 Closing Balance 889 Dr Cr Date Outstanding Expenses Particulars Amount Date Particulars 31/03/2020 Water and Electricity Amount 89 Closing Balance 89 Dr Cr Particulars Pre-Paid Insurance Amount 960 Date Particulars Date 03/03/2020 Cash Amount Closing Balance 960.00 Dr Cr Particulars Particulars Amount Date 08/03/2020 Service Revenue 10/03/2020 Service Revenue 18/03/2020 Service Revenue Account Receivable Amount 800 1,200 500 Date 15/03/2020 Cash 18/03/2020 Cash 30/03/2020 Cash 800 150 1,200 Closing Balance 350.00 Dr Cr Television Particulars Particulars Amount Date 17/03/2020 Loan Amount Date 889 Closing Balance 889.00 Dr Cr Particulars Wages Amount Date 3,000 Particulars Date 31/03/2020 Cash Amount Closing Balance 3,000.00 Dr Cr Date Water and Electricity Amount Date 89 Particulars Particulars 31/03/2020 Outstanding Expenses Amount Closing Balance 89.00 9.00 QUESTION 8 &9 Un Adjusted Trial Balance Adjusted Trial Balance Adjustment Cr Dr Cr Dr Dr Cr 36,690 20,000 15,000 6,500 3300 3,300 80 36,690 20,000 15,000 3,200 3,300 80 880 2,350 889 80 2,000 Cash Land Plant and machinery Office Supplies Supplies Expense Insurance Pre-Paid Insurance Account Receivable Television Wages Water and Electricity Depreciaiotn Accumulated Depreciation-machinery Accumulated Depreciation-television Capital Account Payable Service Revenue Loan Outstanding Expenses 960 350 889 3,000 89 3,000 89 2,953 2,953 2900 2,900 53 53 68800 10000 3700 889 68,800 10,000 5,700 889 2000 89 83,478 89 88,431 83,478 8,333 8,333 88,431 15000 Working 1 Cost of machine Salvage Value No of Years Depreciation for machine 500 5 2900 2 Depreciation for television 53 (6%*889) QUESTION 10 Statement of Profit and Loss Service Revenue Supplies Expense Insurance Wages Water and Electricity Depreciaiotn Net Profit/(Loss) 5700 (3300) (80) (3000) (89) (2953) (3722) Statement of Financial Position Fixed Asset Television Less:Accumulated Depreciation-television 889 53 836 20000 Land Plant and machinery Less:Accumulated Depreciation-machinery 15000 2900 12100 Current Asset Office Supplies Pre-Paid Insurance Account Receivable Cash 3200 880 2350 36690 43120 Total Asset 76056 Equity and Liability Equity Capital Net Loss 68800 -3722 65078 Current Liability Account Payable Loan Outstanding Expenses 10000 889 89 10978 Equity and Liability 76056 Statement of Equity Revaluation Capital reserve Accumulated profit Total 0 0 0 68800 68800 Opening balances Capital Introduced Revaluation Surplus Net Profit/Loss dividends 0 0 0 0 -3722 -3722 0 (3722) 0 68800 0 65078