Question: solve for the basic accounting equation and Expanded basic accounting equation JUNE Mr. A deposited Shs. 600,000 cash in the Bank for the real estate
solve for the basic accounting equation and Expanded basic accounting equation
JUNE Mr. A deposited Shs. 600,000 cash in the Bank for the real estate business. An agreement for the firm to manage on apartment complex for a monthly fee of Shs. 400 to be paid on the fifth day of the following month. Purchase land and office building for Shs. 72,000 the terms of the agreement provided for a cash payment of Shs. 120,000 the remainder to be financed with a 20 year mortgage bearing interest at 12% per year. The purchase price is allocated Shs. 100,000 to land and Shs. 620,000 to building. Cash payment of Shs. 96,000 was made for a 24 month fire and business liability insurance policy. .Purchased office supplies for the amount of 6,200 on credit. Purchase office furniture and equipment for a total price of 96,000 paid 50,000 in cash with the balance due in 60-days. Hired two sales agents and an office secretary Paid Sh 1,200 for radio commercial aired on June 3rd and 4th . 15 Sold a residence that had been listed with the firm. A commission of Shs. 42,000 was earned on the sale to be received when loans closes. 22 Paid salaries and wages for the two weeks, 18,000/= cash. 23 He performed an appraisal and was paid Ksh. 2,500 cash 23 The owner withdrawal Ksh 6,000 cash for personal use 27 Paid for the office supplies purchase on credit. 29 Received Ksh.2,800 for an appraisal to be performed in July. 30 Paid telephone bill Kshs 7,200 cash 30 The loan closed the commission was received. CHART OF ACCOUNTS Cash/bank 001 Office supplies exp. 076 Account Receivable 005 Depreciation Exp. 078 Land 010 Acc Dep. Bidg 056 Building 012 Furniture 058 Note Payable 032 Insurance Exp. 080 Prepaid insurance 008 Interest Exp. 082 Office Supplies 006 interest payable 036 Accounts payable 030 Unearned appraisal fees 054 Office equipment 014 Advertising Exp. 070 Commission Revenue 060 Salaries & wages 072 Appraisal fees 062 Drawing A/c 052 Telephone Exp. 074 Capital A/c 050
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