Analyze these transactions and prepare a table to show their effect on the accounting equation.   Mr. Rasool started a courier service in Ibri, Fast Couriers, on January 1, 2020. The following transactions occurred during the month of January 2020. January 1 Rasool invested OMR 15,000 in the business. January 3 The business borrowed OMR 5,000 from Bank Nizwa, to be repaid after 3 years. January 4 Bought a delivery van OMR 7,000 from Fine Automobiles. Rasool paid OMR 2,000 and the balance will be paid later. January 5 Paid insurance for full year OMR 1,000. January 7 Billed a customer OMR 500, for delivery service and received cash. January 10 Purchased packing materials (supplies) for OMR 500 on account. January 12 Received invoice from Shelly Autocare OMR 250, for the repair of delivery van. Business agreed to pay the cash later. January 14 Earned OMR 1,000 on a customer order for an overseas delivery, but not received the cash. January 15 Rasool took OMR 300 for his personal expenses. January 18 Provided delivery service for a friend, Mr. Hamed, for OMR 300. Hamed paid OMR 180 immediately and agreed to give the balance later. January 21 Purchased a weighing machine for OMR 400. January 23 Hamed paid the balance amount on the services rendered for him. January 27 Remitted OMR 500 to Fine automobiles. January 30 Paid office rent OMR 150. January 31 Staff salary paid OMR 1,000.

Question

Q1) Analyze these transactions and prepare a table to show their effect on the accounting equation.  

Mr. Rasool started a courier service in Ibri, Fast Couriers, on January 1, 2020. The following
transactions occurred during the month of January 2020.
January 1 Rasool invested OMR 15,000 in the business.
January 3 The business borrowed OMR 5,000 from Bank Nizwa, to be repaid after 3 years.
January 4 Bought a delivery van OMR 7,000 from Fine Automobiles. Rasool paid OMR 2,000 and the
balance will be paid later.
January 5 Paid insurance for full year OMR 1,000.
January 7 Billed a customer OMR 500, for delivery service and received cash.
January 10 Purchased packing materials (supplies) for OMR 500 on account.
January 12 Received invoice from Shelly Autocare OMR 250, for the repair of delivery van. Business
agreed to pay the cash later.
January 14 Earned OMR 1,000 on a customer order for an overseas delivery, but not received the cash.
January 15 Rasool took OMR 300 for his personal expenses.
January 18 Provided delivery service for a friend, Mr. Hamed, for OMR 300. Hamed paid OMR 180
immediately and agreed to give the balance later.
January 21 Purchased a weighing machine for OMR 400.
January 23 Hamed paid the balance amount on the services rendered for him.

January 27 Remitted OMR 500 to Fine automobiles.
January 30 Paid office rent OMR 150.
January 31 Staff salary paid OMR 1,000.

Expert Answer

Want to see the step-by-step answer?

Check out a sample Q&A here.

Want to see this answer and more?

Experts are waiting 24/7 to provide step-by-step solutions in as fast as 30 minutes!*

*Response times vary by subject and question complexity. Median response time is 34 minutes and may be longer for new subjects.
Tagged in
BusinessAccounting

Accounting Principles

Journal and Ledger Balance

Book Keeping

Related Accounting Q&A

Find answers to questions asked by students like you.

Q: Using variable and absorption costing, making decisions The 2018 data that follow pertain to Eli’s E...

A: Click to see the answer

Q: Computing margin of safety Robbie’s Repair Shop has a monthly target profit of $31,000. Variable cos...

A: 1. Contribution Margin = Fixed costs + Profit(target) = $19,000 + $31,000 = $50,000 2. Contribution ...

Q: Preparing variable and absorption costing income statements Claudia’s Foods produces frozen meals th...

A: Product cost per meal under variable costing = Variable manufacturing overhead per meal = $5 per mea...

Q: Show the treatment of the following items by a not-for-profit organisation:(i) Annual subscription(i...

A: Introduction From the name itself it is clear that, Non-Profit organisations are not profit motive a...

Q: Preparing a financial budget—budgeted balance sheet Use the following June actual ending balances an...

A: Budgeted Balance sheet:  

Q: In 2014 Vail Resorts, Inc. (MTN), purchased Park City Mountain Resort for $182.5 million. Vail also ...

A: Net Present Value Analysis:   Net Present Value is the difference between the sum of the present va...

Q: owner's equity is  A. added to assets and the two are equal to liabilities b. added to liabilities a...

A: Owners' equity: The claims of owners on a company's resources, after the liabilities are paid off, a...

Q: 11. Briton Company has operating income of $36,000, invested assets of $180,000, and sales of $720,0...

A: Profit margin refers to the measure of profitability. Investment turnover refers to the measure for ...

Q: Fill in the blanks: An increase in accrued income during the particular year is ________________the ...

A: Income:   It is a form of earnings for the company resulting from business activities.