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  • Baitapnlkt 13.1

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    THƯ LƯU THANH
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    Ai Fang Co. opened in July 2020. In August 2021, the company collected receivables, paid expenses, purchased equipment, borrowed funds, and declared dividends. Financial statements were prepared showing revenues of ¥7,500, expenses of ¥4,370, net income of ¥3,130, retained earnings increasing to ¥7,230, total assets of ¥16,500, and liabilities including notes and accounts payable of ¥5,270.

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    baitapnlkt 13.1

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    Ai Fang Co. opened in July 2020. In August 2021, the company collected receivables, paid expenses, purchased equipment, borrowed funds, and declared dividends. Financial statements were prepared showing revenues of ¥7,500, expenses of ¥4,370, net income of ¥3,130, retained earnings increasing to ¥7,230, total assets of ¥16,500, and liabilities including notes and accounts payable of ¥5,270.

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    © All Rights Reserved
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    5 views3 pages

    Baitapnlkt 13.1

    Uploaded by

    THƯ LƯU THANH
    Ai Fang Co. opened in July 2020. In August 2021, the company collected receivables, paid expenses, purchased equipment, borrowed funds, and declared dividends. Financial statements were prepared showing revenues of ¥7,500, expenses of ¥4,370, net income of ¥3,130, retained earnings increasing to ¥7,230, total assets of ¥16,500, and liabilities including notes and accounts payable of ¥5,270.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
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    of 3

    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.

    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 accounts.

    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 Bank – money borrowed on a note payable.

    Assets = Liabilities + Equity


    Accounts Notes Accounts Share
    Cash Supplies Equipment Retained Earnings
    Receivable payable Payable Capital

    Revenue -Expenses -Dividends


    Ju
    5,000 1,500 500 6,000 4,200 4,000 4,800
    l
    1 1,200 -1,200
    2 -2,800 -2,800
    3 4,000 3,500 7,500
    4 -400 2,000 1,600
    5 -2,800
    -4,100 -900
    -400
    6 -700 -700
    7 2,000 2,000
    8 270 -270
    4,200 3,800 500 8,000 2,000 3,270 4,000 7,230
    16,500 16,500
    8. Incurred utility expenses for a month on account ¥270.
    AI FANG COMPANY

    Income statement

    For the month of August 31, 2021

    Revenues 7,500

    Expenses

    Salaries and wages expenses 2,800

    Rent expenses 900

    Advertising expenses 400

    Utilities expense 270

    Total expenses = 4,370

    Net income = 3,130

    AI FANG COMPANY

    Retained Earnings Statement

    For the month of August 31, 2021

    Retained earnings, July 31 4,800

    Add: Net income 3,130

    Less: Dividends 700

    Retained Earnings, August 31 = 7,230


    AI FANG COMPANY

    Statement of Financial Position

    For the month of August 31, 2021

    Assets

    Equipment 8,000

    Supplies 500

    Accounts Receivable 3,800

    Cash 4,200

    Total assets = 16,500

    Equity and Liabilities

    Equity

    Share capital – ordinary 4,000

    Retained earnings 7,230 11,230

    Liabilities

    Notes payable 2,000

    Accounts payable 3,270

    Total equity and liabilities = 16,500

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