Assignment (1) (10 Marks)

Introduction to accounting
BACC 001

The following financial data about Rabie Company during the month December 2017.
(1) Beginning balances (1/12/2017)
Account title Balance Account title Balance
Cash 24,500 Rent Revenue 26,200
Accounts Receivable 23,600 Salaries Expense 36,000
Supplies 6,400 Advertising Expense 17,000
Land 56,000 Utilities Expense 15,800
Building 106,000 Supplies Expense 15,000
Equipment 49,000 Insurance Expense 1,700
Accounts Payable 10,400 Interest Expense 9,000
Notes Payable 102,800 Interest Payable 9,000
Rabie, Capital 150,000 Salary Payable 6,000
Rabie, Drawing 20,000 Service Revenue 75,600

(2) Transactions done during December 2017

1/12. Rabie invested an additional cash $180,000 in the business.
2/12. Purchased land costing $80,000 for cash.
3/12. Purchased equipment costing $18,000 for $10,000 cash and the remainder on credit.
4/12. Purchased supplies on account for $7,000.
5/12. Paid insurance for $10,000 cash.
6/12. He hires five employees.
7/12 performed services for his clients for 55000$ on account.
8/12. Received $20,000 cash for services performed.
9/12 Received $45,000 cash for services previously performed on account.
10/12. Paid wages to employees for $25,000.
11/12. He Exchange the manager of department A to the department D.
13/12. Rabie withdrew $5,000 cash from the business.
14/12. Paid $5,000 for equipment costing transaction 3/12.
15/12. Purchased car costing $30,000 for $20,000 cash and the remainder by signing a 3-
month note payable.
16/12 Paid Interest Expense of $6,000.
18/12 Paid part-time employee salaries of $5,000.
20/12 Incurred $3,000 of advertising costs, on account.
25/12 Provided $5,000 of services on account.
26/12 Rabie withdrew $15,000 cash from the business.
29/12 Collected $15,000 cash for services previously billed.
30/12 Paid Common expenses of $4,000.
31/12 Paid $ 10000 of advertising costs previously bill.

Required :
Prepare Income Statement, Owner's Equity Statement & balance sheet statement for
Rabie Company at the end of the year 2017.(31/12/2017).