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Week 1 Accounting Equation Assignment 2 MDM

The document provides transactions for John McCoy & Associates law firm for the month of April. It includes information on starting capital, loans, purchases, invoices, payments, salaries, and client advances. The goal is to prepare a balance sheet using the extended accounting equation of Assets = Liabilities + Equity + Retained Earnings.

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16 views

Week 1 Accounting Equation Assignment 2 MDM

The document provides transactions for John McCoy & Associates law firm for the month of April. It includes information on starting capital, loans, purchases, invoices, payments, salaries, and client advances. The goal is to prepare a balance sheet using the extended accounting equation of Assets = Liabilities + Equity + Retained Earnings.

Uploaded by

Nobody
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Financial Accounting and Analysis

Prof. Padmini Srinivasan


Accounting Equation Assignment

Accounting Equation Assignment 2

John resigned from a premier law firm and started his own practice John McCoy & Associates. The
following are the transactions of the firm for the month of April.

Date Transaction
Transactions
Number
April 1 1 John began business (capital)with $ 50,000 cash

Rented an office space @ $ 5000 per month. Paid the rent on the same
April 1 2
day for one month

April 3 3 He took a loan of $ 20000 from his friend Carter for his practice

April 9 4 Purchased computers costing $ 20000 by paying cash

April 11 5 Bought Furniture for office for $ 6000 on credit

April 18 6 Invoice to customer for $ 25000 for services rendered.

April 20 7 Made part payment of $ 2000 to the supplier of office furniture.

April 24 8 Received an amount of $25000 cash against invoice

April 30 9 Paid Salaries to employees $5200

April 30 10 Received an advance from a client $8000 for case to appear next month

Prepare the Balance sheet using the extended accounting equation

Assets = Liabilities + Equity


Extended Equation:
Assets = Liability + Capital + Retained Earnings (Income – Expenses)

© All Rights Reserved. This document has been authored by Prof. Padmini Srinivasan and is permitted for use only within the course “Financial
Accounting and Analysis" delivered in the online course format by IIM Bangalore. No part of this document, including any logo, data,
illustrations, pictures, scripts, may be reproduced, or stored in a retrieval system or transmitted in any form or by any means – electronic,
mechanical, photocopying, recording or otherwise – without the prior permission of the author.

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