Question 1: Hashem started a business that offers legal serviceson 1 December 2019. The following are transactions occurred duringthe month of December 2019: 1. Hashem brought in RM50,000 cash andoffice equipments worth RM12,000 into the business. 2. Bought a carfor his own use worth RM112,000 by paying cash (company’s money) ofRM12,000 and signing a note payable for the balance. 3. Providedlegal services to a client worth RM7,000 and received cash ofRM3,000 from the client. 4. Purchased office supplies worth RM2,000cash. 5. Paid RM700 cash for advertising expenses for the months ofDecember 2019. 6. Sent a bill totaling RM5,000 to a client for thelegal service provided and yet to receive payment. 7. ReceivedRM3,000 cash as an agreement to start work as a legal advisor for acompany starting February 2020. 8. Paid RM3,600 cash for employees’salary. 9. Paid RM2,400 cash for December office rental. 10. As at31 December 2019, the office supplies used is RM400. Based on theabove information, you are required to:
a) Show the effects of all the above transactions in theaccounting equation.
b) Prepare the journal entries to record all transactions.
