Question 2 Sualihu Ltd had the following selected transactions: 1. Sualihu Ltd invested AED4,000 in the business in exchange for ordinary shares. 2. Paid office rent of AED1,100 3. Performed consulting services and billed a client AED5,200. 4. Declared and paid a AED700 cash dividend. Required to: [a] Indicate the effect each transaction has on the accounting equation [Assets-Liabilities + Equity] using plus and minus signs. [b] Journalize each transaction.

Question 2 Sualihu Ltd had the following selected transactions: 1. Sualihu Ltd invested AED4,000 in the business in exchange for ordinary shares. 2. Paid office rent of AED1,100 3. Performed consulting services and billed a client AED5,200. 4. Declared and paid a AED700 cash dividend. Required to: [a] Indicate the effect each transaction has on the accounting equation [Assets-Liabilities + Equity] using plus and minus signs. [b] Journalize each transaction.

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter16: Financial Statement Analysis

Section: Chapter Questions

Problem 6BE

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