1. Create 3 adjusting entries.

   1. Write out each adjustment, and give the corresponding adjusting entry for each

Mr. X is a computer hardware industry that provides the necessary assets in computer-based hardware to complete daily activities for companies and personal use for individual owners.

Transaction for the month of July 2021

1. Capital introduced by Mr 'X' $ 100,000

2. Salary Paid $ 15,000

3. Rent Paid $ 18,000

4. Legal Expenses Paid $ 4,000

5. Purchased of Raw Materials $ 45,000

6. Purchased a new Truck from ' A' for credit $ 112,000

7. Cash withdrawn by 'X' $ 5,000

8. Earned an income of $ 205,000, out of which $ 75,000 are receivable.

9. Electricity Paid $ 3,500

10. Salary Paid Advance $ 1,000

Journal Entries for the month of July 2021

Number	Account	Debit ($)	Credit($)
1	Cash	100,000
	Mr X		100,000
2	Salary	15,000
	Cash		15,000
3	Rent	18,000
	Cash		18,000
4	Legal Expense	4,000
	Cash		4,000
5	Purchase	45,000
	Cash		45,000
6	Vehicle (Truck)	112,000
	Mr A		112,000
7	Mr X	5,000
	Cash		5,000
8	Cash	130,000
	Account Receivable	75,000
	Sales		205,000
9	Electicity	3,500
	Cash		3,500
10	Advance Salary	1,000
	Cash		1,000

Trial Balance

Account	Debit ($)	Credit ($)
Capital (Mr X)		100,000
Salary	15,000
Salary Advance	1,000
Legal Expense	4,000
Purchase	45,000
Vehicle(Truck)	112,000
Mr A		112,000
Drawings	5,000
Sales		205,000
Account Receivable	75,000
Electricity	3,500
Cash	138,500
Rent	18,000
Total	417,000	417,000