Styles Paragraph 617 10-1 11 12 13 14 ACCT601 Accounting Practice and Systems Se
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Question
Styles Paragraph 617 10-1 11 12 13 14 ACCT601 Accounting Practice and Systems Semester One 2018 Assessment 1: Workshop Exercises (The Accounting Cycle) (5%) John Thomas inherited some money from his grandmother. He decided to start a computer services firm. The operation of the business started in June 2017. The following are transactions during the first month of operations. All figures are inclusive of GST where applicable. John Thomas began the business with an investment of $48,000 cash and a building valued at $30,000 Purchased office supplies on credit, $2,000 Paid $14,000 for office furniture Paid employee's salary, $2,200 Performed computing services on credit, $3,700 Paid $900 of the account payable created in transaction on 3 June 2017 1 June 3 June 4 June 10 June 14 June 15 June 16 June Received a $600 bill for advertising expense that will be paid in the. near future 20 June Performed computing service for cash, $1,100 22 June Received cash on account, $1,100 26 June Paid the following cash expenses a) Lease on equipment, $1,000 b) Electricity and gas, $900 28 June... John Thomas withdrew.cash of $2.300 Required (use the template provided) a) Record each transaction in the general journal. Provide narration. b) Post the transactions to the ledger and keep a running balance for each account. c) Prepare the trial balance of John Thomas, Computer Services acerExplanation / Answer
Ledger Book for the month of June 2017
Journal Book For John Thomas For the month of June 2017 Date Particulars LF Debit ($) Credit ($) 01-Jun Dr. Cash 48000 Dr. Buildings 30000 Cr. Equity 78000 (Being Cash invested and building brought into the business) 03-Jun Dr. Office Supplies 2000 Cr. Accounts Payable 2000 (Being Office supplies purchased on credit) 04-Jun Dr. Office Furniture 14000 Cr. Cash 14000 (Being Paid for office furniture) 10-Jun Dr. Employees' Salaries 2200 Cr. Cash 2200 (Being Paid Employees' Salaries) 14-Jun Dr. Accounts Receivable 3700 Cr. Computing Services 3700 (Being Computing services provided on credit) 15-Jun Dr. Accounts Payable 900 Cr. Cash 900 (Being Accounts payable repaid partly) 16-Jun Dr. Advertising Expense 600 Cr. Outstanding Advertising Expense 600 (Being received bill for advertising expense to be repaid in future) 20-Jun Dr. Cash 1100 Cr. Computing Services 1100 (Being Computing services provided for cash) 22-Jun Dr. Cash 1100 Cr. Accounts Receivable 1100 (Being Cash received on account) 26-Jun Dr. Lease on Equipment 1000 Dr. Electricity and Gas 900 Cr. Cash 1900 (Being Paid few cash expenses) 28-Jun Dr. Drawings 2300 Cr. Cash 2300 (Being Cash withdrawn by John)