Ahmed opened a new sole proprietorship business specializing in advertising and marketing. The following are the transactions for Ahmed business during the month of August:

1. Ahmed invested $90,000 cash in his business.

2. Purchased supplies for $3,400 and paid cash.

3. Purchased a small car to promote his business for $14,000, paid cash $4,000 and the balance on account.

4. Provided services of $6,300, received cash $3,300 and billed the customer account for the balance.

5. Payment of travel expenses of cash $2,300 for attending a conference.

6. Payment of accounts payable of $2,950 cash for equipment purchased previously to start the business.

7. Receipt of cash from customers for previous consulting services $3,100.

8. Paid 1 year rent for his business with a total amount $ 3,500 cash with the rent contract to start on September 1.

9. Provided advertising services for cash of $4,700 to one of his customers.

10. Borrowed $7,000 from a bank by signing a 3-month, 12% note.

Prepare a tabular analysis (Basic Accounting Equation) for the previous transactions of Ahmed new business for the month of August.

Answer rating: 100% (QA)

Description Assets Liabilities Equity 1 Invested cash 90000 90000 2 Purchased supplies 3400 3400 3 Purchased car 14000 10050 4050 4 Provided services ... View the full answer