The following amounts summarize the financial position of Rodriguez Resources on

Question

The following amounts summarize the financial position of Rodriguez Resources on May 31, 2006; During June, 2006, the business comply these transaction: a. Rodriguez Resources removed cash of 8,600 and issued shares b. Performed services for a customer and received cash off 6,500 Paid 4,700 on accounts payable Purchased supplies on account. 600 e. Collected cash from a customer on account, 200 f. Consulted on the design of a computer system and billed the customer for services rendered 2,700 g. Recorded the following expenses for the month:(1) paid office rent 900; paid advertising - 800. h. Declared and paid cash dividend of 2,300. Requirements: Analyse the effects of the preceding transactions on the accounting equation of Rodriguez Resources, Inc. Prepare the income statement of Rodriguez, Resources, Inc, for the months ended June 30, 2006, List expense is decreasing enter by amount Prepare the statement of changes in equity of Rodriguez Resources, Inc, for the month ended June 30,2006 Prepare the balance sheet of Rodriguez, Inc, at Junce 30,2006.

Explanation / Answer

Assets   = Liabilities+Equity Cash + Accounts Receivable + supplies + land   = Accounts Payable + Share Capital+ Retained Earning+ Type of Shareholders'Equity Transaction Bal         1,450         1,650      11,500 =         7,800         4,000         2,800 a.           8,600 =         8,600 b.         6,500 =         6,500 c.      (4,700) =      (4,700) = d.            600 =            600 e            200          (200) = f.         2,700 =         2,700 g.      (1,700)      (1,700) h.      (2,300)      (2,300) Total         8,050         4,150            600      11,500         3,700      12,600         8,000                -   Rodriguez Resources Income Statement For the Month Of June 2006 Details Amt $ Service Revenue                 9,200 Less Rxpenses: Office Rent                    900 Advertising Expense                    800 Net Operating Income                 7,500 Rodriguez Resources Balance Sheet As On June 30 .2006 Assets Amt $ Cash                 8,050 Accounts Receivable                 4,150 Supplies                    600 Land              11,500 Total Assets              24,300 Liabilities & Equities Accounts Payable                 3,700 Share Capital              12,600 Reatined Earning                 8,000 Total Liabilities & Equity              24,300 Rodriguez Resources Statement of Chages in Equity Opening Balance June 1.2006. Equity                   4,000 Additiona in June Equity                   8,600 Retained Earning opening Balance Jun 1 .2006.                 2,800 Net Income in June 2006.                 7,500 Less dividend paid              (2,300) Total Equity                20,600 .

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