SUMMATIVE FOR FABM 1 SUMMATIVE FOR FABM 1

Company A was incorporated on January 1, 20X0 with an initial capital of Company A was incorporated on January 1, 20X0 with an initial
5,000 shares of common stock having $20 par value. During the first month capital of 5,000 shares of common stock having $20 par value.
of its operations, the company engaged in the following transactions: During the first month of its operations, the company engaged in
Date Transaction the following transactions:

Jan 2 An amount of $36,000 was paid as advance rent for three Date Transaction
months.
Jan 3 Paid $60,000 cash on the purchase of equipment costing Jan 2 An amount of $36,000 was paid as advance rent for three
$80,000. The remaining amount was recognized as a months.
one year note payable with an interest rate of 9%. Jan 3 Paid $60,000 cash on the purchase of equipment costing
Jan Purchased office supplies costing $17,600 on account. $80,000. The remaining amount was recognized as a one
Jan 13 Provided services to its customers and received $28,500
year note payable with an interest rate of 9%.
in cash.
Jan 4 Purchased office supplies costing $17,600 on account.
Jan 13 Paid the accounts payable on the office supplies
purchased on January 4. Jan 13 Provided services to its customers and received $28,500 in
Jan 14 Paid wages to its employees for the first two weeks of cash.
January, aggregating $19,100. Jan 13 Paid the accounts payable on the office supplies purchased
Jan 18 Provided $54,100 worth of services to its customers. on January 4.
They paid $32,900 and promised to pay the remaining Jan 14 Paid wages to its employees for the first two weeks of
amount. January, aggregating $19,100.
Jan 23 Received $15,300 from customers for the services Jan 18 Provided $54,100 worth of services to its customers. They
provided on January 18. paid $32,900 and promised to pay the remaining amount.
Jan 25 Received $4,000 as an advance payment from customers.
Jan 23 Received $15,300 from customers for the services provided
Jan 26 Purchased office supplies costing $5,200 on account.
Jan 28 Paid wages to its employees for the third and fourth
on January 18.
week of January: $19,100. Jan 25 Received $4,000 as an advance payment from customers.
Jan 31 Paid $5,000 as dividends. Jan 26 Purchased office supplies costing $5,200 on account.
Jan 31 Received an electricity bill of $2,470. Jan 28 Paid wages to its employees for the third and fourth week
Jan 31 Received a telephone bill of $1,494. of January: $19,100.
Jan 31 Miscellaneous expenses paid during the month totalled Jan 31 Paid $5,000 as dividends.
$3,470 Jan 31 Received an electricity bill of $2,470.
Jan 31 Received a telephone bill of $1,494.
Jan 31 Miscellaneous expenses paid during the month totalled
$3,470