MPA702 Financial Accounting Assignment 1: Analysis and Interpretation

This document presents a complete solution for MPA702 Assignment 1, focusing on financial accounting principles. Part A provides a detailed transaction analysis chart, meticulously tracking assets, liabilities, and owner's equity. This includes the impact of various transactions on the accounting equation. Part B is not present in the provided solution. Part C, provides a comprehensive income statement for the month ending July 31st, 2019, detailing revenue, expenses (including salaries, motor vehicle depreciation, utilities, telephone, and supplies), and net profit calculations. Furthermore, a balance sheet as of July 31st, 2019, is presented, outlining assets (cash, equipment, furniture, motor vehicle, accounts receivable, prepaid expenses, and supplies), liabilities (accounts payable, utilities payable, and loan), and owner's equity (capital, net profit, and drawings). This solution is designed to assist students in understanding and applying financial accounting concepts, including transaction analysis, financial statement preparation, and ethical considerations. This solution is provided by a student and available on Desklib.

MPA702 Assignment 1
Name:
Student Id:
Part A
Transaction Analysis Chart
Assets Liabilities Owner’s
equity
Cash-70000 Capital-70000
Prepaid expense-
6000
Paid from cash
(6000)
Equipment-10000
Office supplies-2400
Cash- (12400)
Prepaid exp-2400
Office furniture-4000
Cash- (6400)
Office furniture-3000
Cash- (3000)
Motor vehicle- 20000 Loan-20000
Accounts Receivable-
3300
Service revenue-3300
Office Supplies-800 Accounts payable-800
Accounts Receivable-
4400
Service revenue-4400
Cash-3000
Accounts
Receivables-(3300)
Cash-(1000) Drawings- (1000)
Accounts R-7700 Service Rev-7700
Cash-(900) Salaries-(900)
Cash-2200

MPA702 Assignment 1
Accounts Rec-(2200)
Cash-(270) Telephone Exp- (270)
Cash- (200) Office supplies-(200)
Accounts Rec-8800 Service rev- 8800
Cash-(1800) Salaries-(1800)
Cash-(240) Motor vehicle-(240)
Cash-(2200) Drawings-(2200)
ADJUSTMENTS
Office supplies- (500) Office supplies-(500)
Utilities payable-(275) Utilities exp-(275)
 Add extra rows (pages) as needed.
Income statement
(For the month ending 31st July 2019)
Particulars Amount Particulars Amount
Salary 2700.00 By Revenue 24200.00
Motor vehicles 240.00
Utilities expenses 275.00
Telephone 270.00
supplies expenses 700.00
Depreciation
Motor vehicle 4000.00
Computer Equipment 3000.00
Office furniture and fittings 700.00
Net Profit 12315.00
24200.00 24200
Balance sheet
As at 31st July 2019
Particulars Amount Particulars Amount
Capital 70000 Cash 42790
Add: net profit 12315 Computer Equipment 7000
Less: Drawings -3700 Office furniture and fixture 6300
Motor vehicle 16000
Accounts payable 20800 Supplies 2700
Utilities payable 275 Accounts Receivable 16500
Prepaid Expenses 8400
99690 99690

MPA702 Assignment 1
Part B:
Part C: