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(29042020) Tutorial Exercise

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3 views

(29042020) Tutorial Exercise

Uploaded by

ReneeLim
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
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BACT1013 Financial Accounting 1 29/04/2020

Analyse the effect of business transactions on the accounting equation.

Lily opened her own law firm on 1 July 2010. During the first month of operation, the following
transactions occurred.
2010
July
1 Lily invested RM10,000 cash in the law firm.
5 Business paid RM800 cash for July rent on office space.
6 Business purchased office equipment on account RM3,000.
18 Business provided legal services to clients and received cash RM1,500.
20 Business borrowed RM700 cash from bank.
22 Business performed legal services for clients on account RM2,000.
25 Business paid monthly expenses: salaries RM500, utilities RM300 and telephone
RM100.
28 Business paid creditor RM2,200 cash.

Prepare a tabular analysis of the business’s transactions using the following headings and calculate
the total for each item:

Owner’s
Assets = Liabilities +
Equity
Date Cash Account Equipment = Account Loan + Owner’s
Receivable Payable Equity

*Students may complete this exercise in MS Excel and save the file as your name e.g. ‘Renee Lim’ and
upload the file to Dropbox for submission.*

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