Assets = Liabilities

Trans- Accounts Note

Cash + + Supplies + Equipment =
action Receivable Payable
¥ 5,000 ¥ 1,500 ¥ 500 ¥ 6,000
1. 1,200 -1200
2. -2,800
3. 4,000 3,500
4. -400 2,000
5. -4,100
6. -700
7. 2,000 2,000
8.
¥ 4,200 ¥ 3,800 ¥ 500 ¥ 8,000 = ¥ 2,000

¥ 16.500
Liabilities + Equity
Accounts Share Retained Earnings
+ + +
Payable Capital Rev. - Exp. - Div.
¥ 4,200 ¥ 4,000

-2,800
7,500
1,600
4,100
700

270 270
¥ 3,270 ¥ 4,000 ¥ 7,500 ¥ 4,370 ¥ 700

¥ 16.500
¥ 4,800

¥ 4,800
Ai Fang Comapny
Income Statement
For August, 2020
Revenue
Service Revenue ¥ 7,500
Expense
Rent expense ¥ 900
Salaries expense 2,800
Advertising expense 400
Utility expense 270
Total expense ¥ 4,370
Net income ¥ 3,130

Ai Fang Comapny
Retained Earnings Statement
For August, 2020
Retained Earnings, July 31 ¥ 4,800
Add: Net income 3,130
Less: Dividends 700
Retained Earnings, August ¥ 7,230

Ai Fang Comapny
Statement of Financial Position
For August, 2020
Assets
Equipment ¥ 8,000
Supplies 500
Acounts Receivable 3,800
Cash 4,200
Total assets ¥ 16,500
Equity and Liabilities
Equity
Share capital - ordinary ¥ 4,000
Retained earnings 7,230 ¥ 11,230
Liabilities
Accounts Payable ¥ 3,270
Note Payable 2,000 ¥ 5,270
¥ 16,500