Renu Mawani has been operating her own interior design business called Mawani Interiors for a couple...

 

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Renu Mawani has been operating her own interior design business called Mawani Interiors for a couple of years. The following transactions occurred in March 2018. Mar 2 Paid cash of $2,o00 for March's office rental Mar 3 Renu invested $7,000 cash into the business Purchased equipment on account for $8,000 Received $2.800 cash from a client that owed the company for last month's services Mar 4 Mar 6 Mar 8 Purchased office supplies using $370 cash Paid $6,900 cash for a consulting invoice received and recorded last month Mar 10 Mar 13 Completed work for a client and the client paid $2,900 cash Mar 15 Prepaid S1,800 cash for a one-year insurance policy Mar 16 Completed work for a client, who will pay $3,200 next month Mar 20 Discovered that an error was made on the transaction recorded on Mar 4; the equipment cost $8,800, not $8,000 Mar 23 Received a $6,000 cash deposit from a client for work to be completed in the next few months Mar 29 Received utility bills for $410 to be paid next month Mar 29 Signed a notes payable to borrow $12,000 from the bank Mar 30 Renu withdrew $3.000 cash for personal use Mar 31 Paid $18,000 cash for employee salaries Required a) Below is the list of account names that the company uses and their respective opening account balances as at the beginning of March. For each of the accounts, identify the account category (assets, liabilities, owner's capital, owner's withdrawals, revenue or expenses) and input the opening account balance in the debit or credit column based cn the side of its normal balance. The answers have been filled in for the accounts payable account as an example. Be sure to total both the debit and credit sides. (Hint: If all your answers are correct, the total debit will be equal to the total credit.) Account Category Debit Account Name Balance Credit Accounts Payable 6,900 Liabilities 6,900 Accounts Receivable 5,400 Cash Equipment Mawani, Capital 2,200 11,600 12,500 Mawani, Withdrawals Notes Payable Office Supplies Prepaid Insurance Insurance Expense Rent Expense Salaries Expense 200 Service Revenue Unearned Revenue Utilities Expense Total Renu Mawani has been operating her own interior design business called Mawani Interiors for a couple of years. The following transactions occurred in March 2018. Mar 2 Paid cash of $2,o00 for March's office rental Mar 3 Renu invested $7,000 cash into the business Purchased equipment on account for $8,000 Received $2.800 cash from a client that owed the company for last month's services Mar 4 Mar 6 Mar 8 Purchased office supplies using $370 cash Paid $6,900 cash for a consulting invoice received and recorded last month Mar 10 Mar 13 Completed work for a client and the client paid $2,900 cash Mar 15 Prepaid S1,800 cash for a one-year insurance policy Mar 16 Completed work for a client, who will pay $3,200 next month Mar 20 Discovered that an error was made on the transaction recorded on Mar 4; the equipment cost $8,800, not $8,000 Mar 23 Received a $6,000 cash deposit from a client for work to be completed in the next few months Mar 29 Received utility bills for $410 to be paid next month Mar 29 Signed a notes payable to borrow $12,000 from the bank Mar 30 Renu withdrew $3.000 cash for personal use Mar 31 Paid $18,000 cash for employee salaries Required a) Below is the list of account names that the company uses and their respective opening account balances as at the beginning of March. For each of the accounts, identify the account category (assets, liabilities, owner's capital, owner's withdrawals, revenue or expenses) and input the opening account balance in the debit or credit column based cn the side of its normal balance. The answers have been filled in for the accounts payable account as an example. Be sure to total both the debit and credit sides. (Hint: If all your answers are correct, the total debit will be equal to the total credit.) Account Category Debit Account Name Balance Credit Accounts Payable 6,900 Liabilities 6,900 Accounts Receivable 5,400 Cash Equipment Mawani, Capital 2,200 11,600 12,500 Mawani, Withdrawals Notes Payable Office Supplies Prepaid Insurance Insurance Expense Rent Expense Salaries Expense 200 Service Revenue Unearned Revenue Utilities Expense Total

Answer rating: 100% (QA)

JOURNAL ENTRY DATE ACCOUNT TITLES DEBIT CREDIT March2 Rent Expense 2000 Cash 2000 M... View the full answer