Accounting

Prepare a tabular analysis for the previous transactions of Ali new business for the month of January

Assessment Instrument
Cover Sheet
Student’s Name: …………………………………………………………………………………….
Student’s ID No: ……………………………………………………………………………..
Instructions: This is an individual assignment. Two similar copies will be subject to
marks deductions
Question: Total 5 marks CLO#1
Your friend Ali, a new graduated in graphic design, has opened a new business
specialized on advertising and marketing. He requests you (as accounting
specialist) to keep date-to-date accounting transactions and events. The
following are transactions for Ali new business during the month of January
N:
1- Ali invested $80,000 cash in his business.
2- Purchase a new computer with specific graphic features of $4,000 and paid
cash.
3- Purchase of a small car to promote his business $ 15,000 on account.
4- Provide advertising services of $5000, received cash $2,000 and billed on
the customer account for the balance.
5- Payment of travel expenses of cash $1,000 for training purposes.
6- Payment of accounts payable of $750 cash for furniture’s purchased
previously to start the business.
7- Receipt of cash from customers for previous consulting and advising
services $1,100.
8- Paid 2 years insurance policy for his business with a total amount $ 4,000
cash.
9- Provide advertising services for cash $2,500 to one of his customers.
10-Due to unpredictable cash need, Ali withdraws $ 3,500 cash for his
personal use.
Instructions:
Prepare a tabular analysis for the previous transactions of Ali new business for
the month of January.
(5 marks: each line 0.5 mark)
1
Solution question 1: Prepare a tabular analysis for the previous transactions.
(5marks: each line 0.5 mark).
a- Tabular analysis
T.
No.
1
Assets
Liabilities
Owner Equity
Cash A/R Prepaid
Equip
insurance
A/P
Capital Drawing Expenses Revenues
2
3
4
5
6
7
8
9
10
Total
2
b- Prepare the income statement and the owner equity statement for the month of
January (2 marks)
Ali Income statement for the Month of January, N
Label
Amount
= Net income/net loss
3