a)

Asset = Liabilities + Equity

Cash + Accounts Receivable + Supplies + Equipment = Notes Payable + Accounts Payable + Share Capital—Ordinary + Revenues - Expenses - Dividends
July 31 Balance ¥5,000 ¥1,500 ¥500 ¥6,000 ¥4,200 ¥4,000 ¥4,800
(1) +1,200 -1,200
(2) -2,800 -2,800
(3) +4,000 +3,500 +7,500
(4) -400 +2,000 +1,600
(5) -4,100 -4,100
(6) -700 -700
(7) +2,000 +2,000
(8) +270 -270
¥4200 + ¥3,800 + ¥500 + ¥8,000 = ¥2,000 + ¥3,270 + ¥4,000 + ¥7,230
¥16,500 = ¥16,500

b)
Income Statement Retained earnings statement

Revenues Retained earning August 1 ¥ 4,800

Service revenue ¥ 7,500 Add: Net income ¥ 3,130
Expense ¥ 7,930
Salaries - wages expense ¥ 2,800 Less: Dividends ¥ 700
Rent expense ¥ 900 Retained earning, August 31 ¥ 7,230
Advertisement expense ¥ 400
Utilities expense ¥ 270
Total expense ¥ 4,370
Net income ¥ 3,130

Statement of Financial Position

Assets Equity and Liabilities

Equiment ¥ 8,000 Equity
Supplies ¥ 500 Share capital - ordinary ###
Account receivable ¥ 3,800 Retained earnings ### ¥ 11,230
Cash ¥ 4,200 Liabilities
Total assets ¥ 16,500 Notes payable ###
Accounts payable ###
Total liabilities ¥ 5,270
Total equity and liabilities ¥ 16,500