Bhangoo Inc. had the following transactions in its first month of operations:
1. The owner had invested $10,000 Cash in the business, plus some Office Furniture and Equipment that was worth $1,000 in exchange for Common Shares.
2. Additional Equipment costing $4,000 was purchased for Cash.
3. Purchased Supplies for $5000 Cash.
4. Purchased Inventory for $5,000 on account. Later in the month, the company paid half of this amount in Cash and will pay the remainder next month.
5. All Inventories were sold to customers for $8,000. The company received half of this amount in cash and will receive the remainder next month.
6. By the end of the month, $4,000 of the Supplies were used up.
7. The Equipment was amortized/depreciated in amount of $100 for the month.
8. Paid $1,900 in Operating Expenses during the month.
9. Declared and paid $200 in Dividends during the month.
Required:
Part 1: Calculate the following amounts for the month:
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Sales revenue
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$
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Cost of Goods sold
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$
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Total Other expenses
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Net income or loss
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For both the above, and the question below provide details on how you arrived at each total.
Part 2: Calculate the following amounts as of the end of the month.
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Cash on hand
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Total Other Assets
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Total Liabilities
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Share Capital
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Retained Earnings
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