RLS - consulting service Dec 15 For the opinion letters...

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REMEDY LAW SERVICES 1 (RLS) Remedy Law Services (RLS) is established on the 2 nd of December 2006 to render legal consulting services to its clients. The total of cash capital invested by the founders on the same day was 220,000 USD. The following financial events occurred in the company during 2006. Dec. 3 An office flat was bought for 150,000 USD cash Dec. 5 Necessary office furniture was purchased on credit . The total cost of these items were 18,000 USD Dec. 7 After a recruitment program, 7 lawyers were hired to work for RLS. The total monthly wages for these professional were decided to be in the amount of 28,000 USD. Dec. 11 For one of the client firms, First Investment Bank Inc., an opinion report was given about a legal issue. 6,000 USD was asked and collected by RLS for this
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Unformatted text preview: consulting service. Dec. 15 For the opinion letters given, several clients were billed 29,000 USD in total. No collection was made on that amount. Dec. 19 A new computer system and a database was purchased on credit for 12,000 USD. Dec. 25 For legal consultancy work done in the last week, several clients were billed 58,000 USD. in total. 55,000 USD was collected immediately. Dec. 29 The telephone bill was received in the amount of 2,000 USD due to Jan. 8, 2007. Dec. 30 Collection were made from the clients in the amount of 21,000 USD. Dec. 31 21,000 USD were paid to lawyers as the Wages of December 2006. REQUIRED: -Show the effect of each transactions on the Balance Sheet Equation. -Prepare financial statements. 1 Kerem Sarıo ğ lu, Ph.D. © 2007...
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