Question

Question

The following are the business transactions of Rustic Camp Sites for November 2019.

Date	Narration
Event 1	Acquired $150,000 from issuing common stock
2	Bought a photocopier for $2,500, paying cash
3	Received a bank loan $70,000
4	Bought Office premises $130,000, paying cash
5	Revenue earned from providing services $35,000
6	Paid utility expenses $2,500
7	Bought furniture and paid 5,000
8	Salary paid to employees $10,000
9	Cash dividend paid $5,000
10	Paid interest expenses $200
11	Bought office equipment $2,000, paying cash

You are required to;

Prepare a statement showing the effect of transactions as a dollar amount on the accounting equation (horizontal statement mode)

Prepare financial statements,

• Income Statement
• Statement of Changes in Stockholders Equity
• Balance Sheet
• Cash Flow Statement

Answer 1

Horizontal Statement Analysis