P1.2 (LO 4, 5) Ai Fang Co. opened on July 1, 2020. On July 31, the statement of financial position showed Cash ¥5,000, Accounts Receivable ¥1,500, Supplies ¥500, Equipment F Accounts Payable ¥4,200, Share Capital-Ordinary ¥4,000, and Retained Earning of ¥4,800 (amounts in thousands). During August, the following transactions occurred. Analyze transactions and prepare income statement, retained earnings statement, and statement of financial position. 1. Collected ¥1,200 of accounts receivable. 2. Paid ¥2,800 cash on accounts payable. 3. Recognized revenue of ¥7,500 of which ¥4,000 is collected in cash and the balance is due in September. 4. Purchased additional equipment for ¥2,000, paying ¥400 in cash and the balance on account. 5. Paid salaries ¥2,800, rent for August Y900, and advertising expenses ¥400. 6. Declared and paid ¥700 dividend. 7. Received ¥2,000 from Standard Federal Bank-money borrowed on a note payable. 8. Incurred utility expenses for month on account ¥270. nstructions a. Prepare a tabular analysis of the August transactions beginning with July 31 balances. The column headings should be as follows: Cash + Accounts Receivable + Supplies + Fouinment Notes Double unte Double Sham Canital Ondinam D. Dividendo
P1.2 (LO 4, 5) Ai Fang Co. opened on July 1, 2020. On July 31, the statement of financial position showed Cash ¥5,000, Accounts Receivable ¥1,500, Supplies ¥500, Equipment F Accounts Payable ¥4,200, Share Capital-Ordinary ¥4,000, and Retained Earning of ¥4,800 (amounts in thousands). During August, the following transactions occurred. Analyze transactions and prepare income statement, retained earnings statement, and statement of financial position. 1. Collected ¥1,200 of accounts receivable. 2. Paid ¥2,800 cash on accounts payable. 3. Recognized revenue of ¥7,500 of which ¥4,000 is collected in cash and the balance is due in September. 4. Purchased additional equipment for ¥2,000, paying ¥400 in cash and the balance on account. 5. Paid salaries ¥2,800, rent for August Y900, and advertising expenses ¥400. 6. Declared and paid ¥700 dividend. 7. Received ¥2,000 from Standard Federal Bank-money borrowed on a note payable. 8. Incurred utility expenses for month on account ¥270. nstructions a. Prepare a tabular analysis of the August transactions beginning with July 31 balances. The column headings should be as follows: Cash + Accounts Receivable + Supplies + Fouinment Notes Double unte Double Sham Canital Ondinam D. Dividendo
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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PLEASE SOLVE B
Transcribed Image Text:Q6: Solve this question (PART B only)
P1.2 (LO 4, 5) Ai Fang Co. opened on July 1, 2020. On July 31, the statement of financial position showed Cash ¥5,000, Accounts Receivable ¥1,500, Supplies ¥500, Equipment ¥6,000,
Accounts Payable ¥4,200, Share Capital-Ordinary ¥4,000, and Retained Earning of ¥4,800 (amounts in thousands). During August, the following transactions occurred.
Analyze transactions and prepare income statement, retained earnings statement, and statement of financial position.
1. Collected ¥1,200 of accounts receivable.
2. Paid ¥2,800 cash on accounts payable.
3. Recognized revenue of ¥7,500 of which ¥4,000 is collected in cash and the balance is due in September.
4. Purchased additional equipment for ¥2,000, paying ¥400 in cash and the balance on account.
5. Paid salaries ¥2,800, rent for August ¥900, and advertising expenses ¥400.
6. Declared and paid ¥700 dividend.
7. Received ¥2,000 from Standard Federal Bank-money borrowed on a note payable.
8. Incurred utility expenses for month on account ¥270.
Instructions
a. Prepare a tabular analysis of the August transactions beginning with July 31 balances. The column headings should be as follows: Cash + Accounts Receivable + Supplies +
Equipment Notes Payable + Accounts Payable + Share Capital-Ordinary+ Revenues - Expenses - Dividends.
Total assets ¥16,500
b. Prepare an income statement for August, a retained earnings statement for August, and a statement of financial position at August 31.
Net income ¥7,230
Ending retained earnings
¥11,230
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