Accounting Assignment | College Homework Help

Question 1: Prepare an analysis of Nashville’s transactions, employing the balance sheet equation approach (15) On August 31, the balance sheet of Nashville Corporation showed Share Capital 13000, Cash $9000, Accounts Receivable $1700, Office Equipment $6000, Accounts Payable $3600, Inventory $5000 and Retained Earnings $5100. During September the following transactions occurred. 1. Paid $2900 cash on accounts payable. 2. Paid $8000 for insurance on September 1 for the full period ending December 31, 2012. 3. Raised additional capital stock by issue of shares worth $10000. 4. Purchased state of the art office equipment for $2100, paying $800 in cash and the balance on account. 5. Earned revenue of $6300 of which $2500 is for cash and the balance is due in October. 6. Cost of Goods Sold in the above transaction is $2000. 7. Purchased inventory on account for $2000 8. Returned damaged goods worth $200 9. Paid dividends of $600. 10. For September paid salaries $1700, utilities $900 and advertising expense $300. 11. Borrowed $10,000 from Dubai Bank. 12. Recognized insurance expense for September.