I ASSIGNMENT 1 QUESTION 3 FINANCIAL ACCOUNTING 1 CODE: FAC51US Aupa Mutumbula qualified as a accounted in June 2014, and 1 July 2014 began a new auditing and accounting work by investing N$ 20 000 in cash and accounting books with a N$ 4 000 fair value that he had used at university. The practice trades. under the name Quatjiri AM Accounted. The following transactions relate to July: 1 5 7 10 15 15 16 NO 1 0 2 2 2 5 17 18 Rent the furnished office of accounted who was retiring, paying N$ 9.000 cash for six month rent in advance. Purchased office supplies for cash N$ 250 Bought the accounting package of the retiring accounted for N$ 20 000, paying N$ 5 000 cash and agreeing to pay the balance within six months. The system has a useful life of ten years after which they will have no value. Completed legal work for a client and immediately collected N$ 500 in cash for the work done Purchased additional office supplies on credit N$ 400. Completed accounting work for client on credit N$ 6000. Paid cleaning service to clean the office for the month N$ 750 Paid for repairs and painting of the office, N$ 1 250 Paid the salary of the part-time legal adviser N$ 3.000. Paid for the office supplies purchased on 7 July. Completed accounting service for aq client on credit, N$ 4 000 20 Received payment in full for the accounting work completed on 10 July 22 27 31 Completed additional legal work for the same client on credit, N$ 3 500. Received payment in full for the accounting service completed on 18 July. Paid the July telephone bill, N$ 250 Paid the July electricity and water account, N$ 200. Paid the office secretary salary, NS 3 000 Recognised rent and depreciation expense and supplies used of N$ 500 You are required to: a) Arrange the following asset, liability and owners' equity headings on accounting equation worksheet: Bank, Account receivable, Rent paid in advance, Office supplies, Accounting system, Account payable, Capital, Income and Expense's, and show the effects of the transactions on the elements of the equation by recording increase and decrease in the appropriate columns. (40 Marks) b) Prepare a statement of profit or loss for Quatjiri AM Accounted for the period ended 31 July 2014. (6 Marks) c) Prepare a statement of financial position for Quatjiri AM Accounted as at 31 Marc 2014. The accounting equation is Assets-capital +liabilities (6 Marks) [Total marks 52] END OF ASSIGNMENT I 3