Assignment

ON: CHAPTER 1

Prepared by:
PARVEZ RAHMAN
ID : 193-11-6362
Section :B
Department : BA

Submitted to:
Sayed Farrukh Ahmed
Department: BA
Daffodil International University
E1.6
The effect of each transaction on have been given below.
1. Increase in assets and increase in owner’s equity.
2. Decrease in assets and decrease in owner’s equity.
3. Increase in assets and increase in liabilities.
4. Increase in assets and increase in owner’s equity.
5. Decrease in assets and decrease in owner’s equity.
6. Increase in assets and decrease in assets.
7. Increase in liabilities and decrease in owner’s equity.
8. Increase in assets and decrease in assets.
9. Increase in assets and increase in owner’s equity.

E1.7
Indicated the transaction with the appropriate letter.
1. c 5. d
2. d 6. b
3. a 7. e
4. b 8. f

E1.8 (a)
The transactions have been given below.
1. Owner invested £15,000 cash in the business.
2. Purchased equipment by paying £2,000 in cash
And £3,000 on account.
3. Paid £750 cash for supplies.
4. Performed £8,500 of services, receiving £4,000
Cash and £4,500 on account.
5. Paid £1,500 cash on accounts payable.
6. Owner withdrew £2,000 cash for personal use.
7. Paid £560 cash for rent
8. Collected £450 cash from customers on account
9. Paid salaries and wages of £4,800.
10.Incurred £400 of utilities expense on account.
E1.8 (b)
Kang & Co. owner’s equity increase for the month of August:

Beginning Owner’s Equity + Additional Investment + Total Revenue – Total Expense

– Drawing
= £0 + £15,000 +£8,500 - £ (560 + 4,800 +400) - £2,000

=£23,500 - £5,760 - £2,000

=£17,740 - £2,000

=£15,740

E1.8 (c)
Kang & Co.
Income Statement
For the month ended 31 August

Service revenue............................................... £8,500

(-)Expenses
Rent expense.................................................... £560
Salaries and wages expense.......................... 4,800
Utilities expense.............................................. 400
5,760

Net income £2,740

E1.11 (a)
Greene’s Goods, Beginning of the year:
Assets = Liabilities + Owner’s Equity
Or, €110,000 = €85,000 + x
Or, x = €110,000 - €85,000
Or, x = €25,000
.∙. Owner’s Equity = €25,000

E1.11 (b)
Greene’s Goods,
Beginning Owner’s Equity + Additional Investment + Total Revenue
– Total Expense – Drawing = Ending Owner’s Equity
Or, €25,000 + x + €220,000 - €175,000 - €37,000 = €40,000
Or, x + €245,000 - €212,000 = €40,000
Or, x + €33,000 = €40,000
Or, x = €40,000 - €33,000
Or, x = €7,000
.∙. Additional Investment = €7,000

E1.11 (c)
Solar Enterprises Beginning of the year,
Assets = Liabilities + Owner’s Equity
Or, €129,000 = x + €80,000
Or, x = €129,000 - €80,000
Or, x = €49,000
.∙. Liabilities = €49,000

E1.11 (d)
Greene’s Goods,
Beginning Owner’s Equity + Additional Investment + Total Revenue
– Total Expense – Drawing = Ending Owner’s Equity
Or, €80,000 + €25,000 + €100,000 - x - €60,000 = €130,000
Or, €205,000 - €60,000 - x = €130,000
Or, €145,000 - x = €130,000
Or, x = €145,000 - €130,000
Or, x = €15,000
.∙. Drawing = €15,000

P1.1 (a)
Miaoli’s Travel Agency
Tabular analysis
 Assets Liabilities Owner’s Equity
Accounts Accounts Owner’s Owner’s
Cash + Receivable +Supplies + Equipment = Payable + Capital - Drawings + Revenues -E
+NT$15,000 = +NT$15,000

– 600 = –

–3,000 +NT$3,000 =
= +$700

–900 +NT$900 =
– +3,000 +NT$7,000 = +NT$10,000

–600 = –NT$600

–500 = +–500

–2,500 =
+4,000 +–4,000 =
NT$13,900 + NT$3,000 + NT$900 + NT$3,000 = + NT$200 + NT$15,000 – NT$600 +NT$10,000 –N

$20,800 $20,800
 P1.1 (b)
Miaoli’s Travel Agency
Income Statement
For the month ended 31 April

Revenue
Service revenue............................................... NT$10,000
(-)Expenses
Rent expense.................................................... NT$2,500
Salaries and wages expense.......................... 600
Utilities expense.............................................. 700
3,800

Net income NT$6,200

Assets Liabilities Owner’s Equ

Trans- Accounts Accounts Notes Owner’s Owner’s
action Cash + Receivable +Supplies + Equipment = Payable + Payable + Capital - Drawings + Reve

Bal. +¥5,000 +¥1,500 +¥500 +¥6,000 = +¥4,200 +¥8,800

1 +1,200 –1,200 =
2 –2,800 = - 2,800

3 +4,000 +3,500 = +¥

4 –400 +2,000 = +1,600

5 – –4,100 =

6 –700 = ¥700

7 +2,000 = + +¥2,000

8 = +270

¥4,200 + ¥3,800 + ¥500 + ¥8,000 = + ¥3,270 + ¥2,000 + ¥8,800 – ¥700 +¥

$16,500 $16,500
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P1.2 (b)
Ai Fang
Income Statement
Revenue
Service
revenue........................................................................... ¥7,500
(-)Expenses
Salaries and wages
expense..................................................... ¥2,800
Rent
expense..............................................................................
. 900
Advertising 400
expense.................................................................. 270
Utilities
expense.........................................................................
4,070
Net income ¥3,130
For the Month Ended August 31, 2020

Ai Fang
Owner’s Equity Statement
Beginning Capital ¥8,800
(1.8.2020)..............................................................................
(+)New 0
investment...............................................................................................
(+)Net 3,130
Income........................................................................................................
(-) 700
Drawing......................................................................................................
.......

Ending Capital(31.8.2020) ¥11,230

For the Month Ended August 31, 2020

 Ai Fang
Owner’s Equity Statement
August 31, 2020

Assets
Cash......................................................................................... ¥ 4,200
Accounts receivable............................................................... 3,800
Supplies................................................................................... 8,000
Equipment............................................................................... 500
Total assets..................................................................... ¥ 16,500

Liabilities and Owner’s Equity

Liabilities
Notes payable.................................................................. ¥ 2,000
Accounts payable............................................................ 3,270
Total liabilities.......................................................... 5,270
Owner’s equity
Owner’s capital................................................................ 11,230
Total liabilities and owner’s equity......................... ¥ 16,500 _