ZAK trading was incorporated on January 1/2006 with an initial capital of 200,000 during the first month of its operations the company engaged in following trans actions:
jan2 amount of 40,000 was paid as advance rent for two months.
jan 3 paid 80,000 cash on the purchase of equipment costing 100,000. the remaning amount was recognized as a one year note payable with interest rate of 10%
jan4 purchased office supplies costing 20,500on account.
jan13 provided services to its customer and received 30,00
jan13 Paid the accounts on the office supplies purchased on January 4.
jan14 paid wages to its employees for first two weeks of January aggregating 20,200.
jan18 provided 60,200worth of services to its customer. they paid 42,800 and promised to pay the remaining amount.