All transaction occur in Jan 1, 2018 1- Jan 1, Jana Mohammad begins his own busi
ID: 2511701 • Letter: A
Question
All transaction occur in Jan 1, 2018
1- Jan 1, Jana Mohammad begins his own business with a cash investment of 150,000$.
2- Jan 10, Jana Mohammad paid 60000 cash for rent expenses
3- Jan 12, Jana Mohammad purchased for 20000 equipment she paid 2000 cash and 18000 on credit
4- Jan 12, Jana Mohammad paid 4500 cash for decoration expenses
5- Jan13,jana Mohammad purchased for 1000 supplies cash
6- Jan15, Jana Mohammad paid 500 cash for advertising expenses
7- Jan 18, Jana Mohammad purchased for 15000 car she paid 3000 cash and 12000 on credit
8- Jan 20, Jana Mohammad received 500 cash from customer for rent a lake in the shop
9- Jan 20, Jana Mohammad withdraw 300 cash from the business for her personal use
10- Jan 21, Jana Mohammad Purchased a one-year fire insurance policy for 30,000
11- Jan 22, customer rent a lake in the shop on account by 500
12- Jan 23,jana Mohammad paid 2000 cash for equipment which bought on credit (on transaction 3 )
13- Jan 24, Jana Mohammad borrowed 10,000$ by signing 5%, one-year note on february1, 2019.
14- Jan 25, Jana Mohammad paid 3000 cash salaries expenses
15- Jan 27, Jana Mohammad received 200 cash from the customer whose rent a lake on account ( transaction 11)
16- Jan 31, used shop supply during the month 600 •
Prepare a journal entry and t account
Explanation / Answer
Jounal Debit Credit 1 Cash 1,50,000 To Capital 1,50,000 2 Rent 60,000 To Cash 60,000 3 Equipment 20,000 To Cash 2,000 To Equipment vendor 18,000 4 Decoration Expenses 4,500 To Cash 4,500 5 Supplies 1,000 To cash 1,000 6 Advertisement Expense 500 To Cash 500 7 Car 15,000 To Cash 3,000 To Car Vendor 12,000 8 Cash 500 To sales from rent a lake 500 9 Drawings 300 To Cash 300 10 Fire Insurance Expenses 2,500 Prepaid fire insurance 27,500 To Cash 30,000 11 Accounts Receivable 500 To sales from rent a lake 500 12 Equipment vendor 2,000 To Cash 2,000 13 Cash 10,000 To Notes payable 10,000 14 Salaries 3,000 To Cash 3,000 15 Cash 200 To Accounts Receivable 200 16 Supply expenses 600 To Supplies 600 17 Capital 300 To Drawings 300 Cash Account Capital Account Particulars Amount Particulars Amount Particulars Amount Particulars Amount To Capital 1,50,000 By Rent 60,000 To Drawings 300 By Cash 1,50,000 To sales from rent a lake 500 By Equipment 2,000 To Balance C/F 1,49,700 To Notes payable 10,000 By Decoration Expenses 4,500 1,50,000 1,50,000 To Accounts Receivable 200 By Supplies 1,000 By Advertisement Expense 500 By Car 3,000 Rent Account By Drawings 300 Particulars Amount Particulars Amount By Fire Insurance Expenses 2500 To Cash 60,000 By Balance C/F 60,000 By Prepaid fire insurance 27500 By Equipment Vendor 2000 60,000 60,000 By Salaries 3000 Equipment Account By Balance C/F 54400 0 Particulars Amount Particulars Amount 1,60,700 1,60,700 To Cash 2,000 By Balance C/F 20,000 To Equipment vendor 18,000 Equipment Vendor Account 20,000 20,000 Particulars Amount Particulars Amount To cash 2,000 By Equipment 18,000 Supllies Account To Balance C/F 16,000 Particulars Amount Particulars Amount 18,000 18,000 To Cash 1,000 By Supply Expenses 600 Decoration Expenses Account By Balance C/F 400 Particulars Amount Particulars Amount 1,000 1,000 To Cash 4,500 By Balance C/F 4,500 Advertisement Expenses Account 4,500 4,500 Particulars Amount Particulars Amount To Cash 500 By Balance C/F 500 Car Account 500 500 Particulars Amount Particulars Amount To Cash 3,000 By Balance C/F 15,000 Sales from rent a lake Account To Car Vendor 12,000 Particulars Amount Particulars Amount 15,000 15,000 To Balance C/F 1,000 By Cash 500 Car Vendor Account To Accounts Receivable By Accounts Receivable 500 Particulars Amount Particulars Amount 1,000 1,000 To Balance C/F 12,000 By Car 12,000 Fire Insurance Expenses Account 12,000 12,000 Particulars Amount Particulars Amount To Cash 2,500 By Balance C/F 2,500 2,500 2,500 Drawings Account Particulars Amount Particulars Amount To Cash 300 By Capital 300 Accounts Receivable Account 300 300 Particulars Amount Particulars Amount To sales from rent a lake 500 By Cash 200 Prepaid Fire Insurance Account By Balance C/F 300 Particulars Amount Particulars Amount 500 500 To Cash 27,500 By Balance C/F 27,500 Notes Payable Account 27,500 27,500 Particulars Amount Particulars Amount To Balance C/F 10,000 By Cash 10,000 Salaries Account 10,000 10,000 Particulars Amount Particulars Amount To Cash 3,000 By Balance C/F 3,000 3,000 3,000 Supply Expenses Account Particulars Amount Particulars Amount To Supplies 600 By Balance C/F 600 600 600