(Recording of Transactions) Kazam Services begins the month with capital of $200,000 and the following assets and liabilities:
|
Assets |
Liabilities |
||
|
Property, plant, and equipment |
$500,000 |
Bank overdraft |
$ 35,000 |
|
Account receivable |
$125,000 |
Account payable |
$ 90,000 |
|
Long term loan |
$300,000 |
The following transactions took place in the accounting records of the business during the past month:
- Took out long term loan for new building: $150,000
- Received from debtors: $45,000
- Paid to creditors: $30,000
- Invoiced customers for services carried out: $70,000
- Paid salaries: $15,000
- Paid various office expenses: $5,000
In addition, depreciation of $20,000 was provided for the period.
- Produce a schedule of transactions under appropriate headings for each account.
- Total each account and produce a statement of comprehensive income and statement of financial position.