Question

Question 4 Kyoto Japanese Restaurant Part I. Consider the following transactions which occur in the month of January, 2018 for Kyoto Japanese Restaurant: (1) Jan 1, Caleb Young invested S55,000 in exchange for common shares of Kyoto Japanese Restaurant (KJR). (2) Jan 1, KJR paid three months office rent in advance, totaling S6,000. (3) Jan 2, KJR paid $30,000 for a vehicle. (4) Jan 2, purchased kitchen equipment for cash, $20,000. (5) Jan 3, purchased office supplies, $600, and kitchen equipment, $3,500, on account. (6) Jan 5, paid $1,500 of the amount owed for the kitchen equipment (Transaction #5) (7) Jan 15, provided catering service and billed the customer $12,000. (8) Jan 15, paid the chefs salary for the first two weeks of the month, $1,000. (9) Jan 20, collected the $6,000 from the customer (Transaction #7) (10) Jan 31, paid a S200 dividend to Caleb as the sole shareholder. (11) Jan 31, paid the monthly telephone bill, $70. (12) Jan 31, paid for gas and oil used in the vehicle, $250.

Prepare the financial statements: Classified Balance Sheet, Single-step Income Statement, and Statement of Changes in Equity.

Answer 1

Answer.

Kyoto Japanese Restaurant

Balance Sheet

as at 31 January, 2018

Particulars	Amount $
Assets
Casha and Cash Equivalents	7980
Trade Receivables	6000
Inventories	260
Other Current assets	6000
Fixed Assets
Vehicles	29750
Kitchen Equipment	23397
TOTAL	73387
Liabilities and equity
Current Liabilities
Trade Payables	2600
Short term borrowings	-
Outstanding Expenses	3000
Long term liabilities
Shareholders Equity
Capital	55000
Retained Earnings	12787
TOTAL	73387

Single Step Income Statement

In the books of Kyoto Restaurant

Income Statement

For the month ended 31 January,2018

Particulars	Amount $
Revenue & Gains
Sales Revenue	12000
Other Income	-
Total Revenue and Gains	12000
Expenditure and Losses
Cost of Goods sold	340
Salaries and Wages	2000
Rent	(4000)
Depreciation	353
Dividend	200
Telephone Expenses	70
Gas, oil	250
Expenditure and Losses	(787)
Net INCOME	12787

Kyoto Japanese Restaurant

Statement of Changes in Equity

Changes in equity for the month of January

Issue Of Share Capital 55000

Income of the year 12787

Revaluation -

Dividend 200

67987