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Analyze transactions and prepare income statement, retained earnings statement, and statement of financial position. Ai Fang Co. opened on July 1.2020. On July 31, the statement of financial position showed Cash ¥5,000. Accounts Receivable ¥1.500. Supplies ¥500. Equipment ¥6.000. Accounts Payable ¥4,200. Share Capital—Ordinary ¥4.000. and Retained Earning of ¥4.800 (amounts in thousands). During August, the following transactions occurred. 1. Collected ¥ 1.200 of accounts receivable. 2. Paid ¥2,800 cash on accounts payable. 3. Recognized revenue of ¥7,500 of which ¥4.000 is collected in cash and the balance is due in September. 4. Purchased additional equipment for ¥2,000. paying ¥400 in cash and the balance on account. 5. Paid salaries ¥2.800, rent for August ¥900. and advertising expenses ¥400. 6. Declared and paid ¥700 dividend. 7. Received ¥2.000 from Standard Bank—money borrowed on a note payable. 8. Incurred utility expenses for month on account ¥270. Instructions
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