(Recording of Transactions) Kazam Services begins the month with capital of $200,000 and the following assets and liabilities:
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Assets
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Liabilities
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Property, plant, and equipment
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$500,000
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Bank overdraft
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$ 35,000
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Account receivable
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$125,000
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Account payable
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$ 90,000
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Long-term loan
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$300,000
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The following transactions took place in the accounting records of the business during the past month:
- Took out long-term loan for new building: $150,000
- Received from debtors: $45,000
- Paid to creditors: $30,000
- Invoiced customers for services carried out: $70,000
- Paid salaries: $15,000
- Paid various office expenses: $5,000
In addition, depreciation of $20,000 was provided for the period.
- Produce a schedule of transactions under appropriate headings for each account.
- Total each account and produce a statement of comprehensive income and statement of financial position.