You are operating your accounting firm. Your first client had the following transactions in January 20x7....
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You are operating your accounting firm. Your first client had the following transactions in January 20x7. 1. borrowed $15,000 from bank. 2. Purchase $ 3,500 of computer equipment for cash. 3. Paid $850 cash for this month rent. 4. purchased $1,600 of office supplies on credit. It is expected that these supplies will last for 3months. 5. billed $600 to customers for services rendered during January. 6. paid cash for the $1,600 balance owed to the vendor from transaction 4. 7. Collected $460 cash of the amount billed to the customer in transaction 5. 8. sold one-half of the equipment purchased in transaction 1, along with $50 in interest. Use the Four steps in accounting cycle to analyze business transactions: Questions: identify transactions from source documents. analyzing transactions using the accounting equation recording the journal entry posting the entry to the ledger to complete the following: 1.) Prepare journal entries for each above transaction. 2.) Post the journal entries to T-accounts and total the accounts. 3.) From the T-accounts, prepare an unadjusted trial balance. You are operating your accounting firm. Your first client had the following transactions in January 20x7. 1. borrowed $15,000 from bank. 2. Purchase $ 3,500 of computer equipment for cash. 3. Paid $850 cash for this month rent. 4. purchased $1,600 of office supplies on credit. It is expected that these supplies will last for 3months. 5. billed $600 to customers for services rendered during January. 6. paid cash for the $1,600 balance owed to the vendor from transaction 4. 7. Collected $460 cash of the amount billed to the customer in transaction 5. 8. sold one-half of the equipment purchased in transaction 1, along with $50 in interest. Use the Four steps in accounting cycle to analyze business transactions: Questions: identify transactions from source documents. analyzing transactions using the accounting equation recording the journal entry posting the entry to the ledger to complete the following: 1.) Prepare journal entries for each above transaction. 2.) Post the journal entries to T-accounts and total the accounts. 3.) From the T-accounts, prepare an unadjusted trial balance.
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Related Book For
Financial Accounting A User Perspective
ISBN: 978-0470676608
6th Canadian Edition
Authors: Robert E Hoskin, Maureen R Fizzell, Donald C Cherry
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